Progress and Challenges in Implementing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) Measures in Brunei
Brunei has demonstrated progress in implementing AML and CTF measures, but there are still areas that require improvement. This article highlights key points of concern and recommendations for further strengthening the country’s institutional capacity.
Key Areas of Concern:
- Money Laundering (ML) Offences: Brunei’s ML investigations have primarily focused on self-laundering activities with limited examples of standalone ML or ML from foreign predicate offences.
- Confiscation: Brunei includes confiscation as an overarching policy objective in its National Strategy, but has had limited success in pursuing and confiscating criminal proceeds that have moved overseas.
- Cash Smuggling: There are concerns regarding the potential for poor detection of cash smuggling at borders, especially given Brunei’s largely cash-based economy.
- Terrorism and Proliferation Financing (TF): Brunei authorities place a high priority on combating terrorism and TF, with a preventive strategy that relies heavily on background intelligence work and other preventive measures to address emerging issues early.
Regulatory Framework and Preventive Measures:
- Regulatory Framework: Brunei’s legal and operational frameworks are generally sound for implementing TF TFS, but has not issued and implemented a legal and operational framework for PF TFS.
- Preventive Measures: Some core elements of preventive measures are in place for FI/DNFBP, but there are gaps with the regulatory framework for preventive measures, and no comprehensive framework for including VASPs.
Recommendations:
- Continue to strengthen institutional capacity
- Improve understanding of ML/TF risks
- Enhance regulatory frameworks to effectively combat money laundering and terrorist financing