20 June 2016

Timor-Leste strengthens response to money-laundering, terrorism financing

With PSDI support, the Government of Timor-Leste has approved two key documents that will bring its anti-money laundering and counter financing of terrorism (AML/CFT) framework into line with international, Financial Action Taskforce (FATF) standards.

PSDI has been working with the National Commission for the Implementation of Measures to Combat Money Laundering and Financing of Terrorism to undertake a national risk assessment, draft a strategic plan to respond to shortcomings identified in the assessment, and guide the implementation of AML/CFT processes across government and the private sector.

The risk assessment was based on inputs from a broad range of public and private sector stakeholders—whose perceptions it gathered on the money laundering and terrorist financing threats and vulnerabilities faced by Timor-Leste—and on  relevant data, such as that concerning on proceeds-generating crimes.

The strategic plan responds to the threats and vulnerabilities identified in the risk assessment and in an evaluation undertaken in 2012 by the Asia/Pacific Group on Money Laundering, a regional associate of FATF. The plan identifies strategic objectives and provides a roadmap for implementing key legal and institutional changes needed to strengthen the AML/CFT framework.