Financial Crime World

Combating Financial Terrorism in Brunei Darussalam: A Review of the Country’s Efforts

Brunei Darussalam has been working tirelessly to combat financial terrorism and money laundering, with its efforts evaluated by the Financial Action Task Force (FATF). The country’s MER Ratings 2023 reflect the extent to which it has implemented the technical requirements of the FATF Recommendations.

Compliant Areas

The review highlights several areas where Brunei Darussalam is compliant with international standards:

  • Assessing risk and applying a risk-based approach
  • National cooperation and coordination
  • Confiscation and provisional measures

Additionally, the country has largely complied with the FATF Recommendations in areas such as:

  • Money laundering offence
  • Terrorist financing offence
  • Targeted financial sanctions related to terrorism and terrorist financing
  • Customer due diligence
  • Preventing the misuse of new technologies and wire transfers

Non-Compliant Areas

However, there are some areas where Brunei Darussalam was found to be partially compliant or non-compliant:

  • Regulation and supervision of financial institutions
  • Powers of supervisors
  • Mutual legal assistance

The FATF Recommendations

The FATF Recommendations provide a framework for countries to combat financial terrorism and money laundering. The MER Ratings 2023 highlight Brunei Darussalam’s progress in implementing these recommendations and identify areas where further improvement is needed.

Conclusion

Overall, the review suggests that Brunei Darussalam has made significant progress in combating financial terrorism and money laundering. However, there are still some gaps that need to be addressed. The country’s authorities will need to continue to work to strengthen its financial regulatory framework and improve international cooperation to effectively combat these threats.

Key Takeaways

  • Brunei Darussalam has made significant progress in combating financial terrorism and money laundering
  • There are still areas for improvement, including regulation and supervision of financial institutions and powers of supervisors
  • The country’s authorities will need to continue to work to strengthen its financial regulatory framework and improve international cooperation