UN Security Council Imposes Sanctions on Money Laundering and Financing of Terrorism in Maldives
Introduction
New York, USA - The United Nations Security Council has imposed sanctions on money laundering and financing of terrorism in the Maldives under Chapter VII of the UN Charter.
Sanctions Aim to Prevent Illicit Funds Flow
The sanctions aim to prevent the flow of illicit funds through the country’s financial system and disrupt the networks of individuals and entities involved in these illegal activities. The measures include:
- Reporting requirements for financial institutions
- Strict customer due diligence procedures
- Administrative penalties for non-compliance
Maldives Fails to Take Adequate Measures
According to a statement issued by the Security Council, “the Maldives has failed to take adequate measures to prevent money laundering and financing of terrorism, despite repeated calls from the international community.” The Council stressed that these illegal activities pose a significant threat to global stability and security, and must be addressed urgently.
Sanctions Apply to All Financial Institutions
The sanctions will apply to all financial institutions operating in the Maldives, including:
- Banks
- Money changers
- Other financial service providers
Under the measures, these institutions will be required to report:
- All transactions exceeding $10,000
- Any suspicious or unusual transactions
Designated Individuals and Entities Subject to Sanctions
The Security Council has designated several individuals and entities involved in money laundering and financing of terrorism in the Maldives as targets for sanctions. These individuals and entities will be subject to:
- Asset freezes
- Travel bans
- Other measures designed to disrupt their activities
United Nations Secretary-General Welcomes Decision
The United Nations Secretary-General, Antonio Guterres, welcomed the decision, saying that “the Security Council’s action is a clear signal that the international community will not tolerate these illegal activities, and that we are committed to working together to prevent them.”
FATF Report Highlights Deficiencies in Maldives’ Anti-Money Laundering Regime
The sanctions were imposed following a report by the Financial Action Task Force (FATF), which highlighted the Maldives’ significant deficiencies in its anti-money laundering and combating the financing of terrorism regime. The FATF recommended that the country take immediate action to address these deficiencies, or face further measures.
Decision Sends Strong Message
The Security Council’s decision is seen as a major victory for international efforts to combat money laundering and financing of terrorism. It sends a strong message to countries around the world that these illegal activities will not be tolerated, and that swift and decisive action will be taken to prevent them.