https://www.thestar.com.my/aseanplus/aseanplus-news/2025/03/26/laos-vows-to-comply-with-international-laws-to-combat-money-laundering

The government has reaffirmed its commitment to strengthening anti-money laundering and countering the financing of terrorism (AML/CFT) measures as Laos works to exit the Financial Action Task Force (FATF) grey list.

The grey list, officially known as “jurisdictions under increased monitoring”, identifies countries actively working with the FATF to address deficiencies in their anti-money laundering and counter-terrorism financing (AML/CFT) regimes.

The Anti-Money Laundering Intelligence Office, the Bank of the Lao PDR, and the Supreme People’s Procuracy, in partnership with the Institute for Legal Support and Technical Assistance, organised a two-day conference in Vientiane to discuss efforts to meet FATF standards with the support of the Royal Thai Embassy in Vientiane and the Government of Luxembourg.

Deputy Prime Minister and Chair of the National Coordinating Committee on AML/CFT, Saleumxay Kommasith (pic), reaffirmed the government’s commitment to strengthening AML/CFT frameworks, stressing the importance of implementing the FATF action plan in a timely manner.

Saleumxay said money laundering and terrorist financing are serious transnational crimes linked to drug trafficking, the arms trade, human trafficking, illegal gambling, and corruption.

“These crimes threaten political stability, economic development and national security,” he said.

He outlined the government’s key measures to combat these threats, including the establishment of the Anti-Money Laundering Intelligence Office in 2007 and the creation of the National Committee for Anti-Money Laundering in 2014.

Laos has also signed international treaties, such as the United Nations Conventions against Transnational Crime, and bilateral agreements with neighbouring countries to strengthen legal cooperation.

Despite these efforts, Saleumxay admitted there is strong evidence to show that the handling of money laundering cases in Laos remains relatively limited.

“Criminal activities that could potentially lead to money laundering, such as drug trafficking, human trafficking, fraud, and other high-risk offences, have become widespread in Laos. These acts carry significant risks of escalating into money laundering crimes and terrorist activities,” he said.

Laos was placed under increased monitoring in 2023 after the Asia/Pacific Group on Money Laundering conducted its second mutual evaluation and identified strategic deficiencies in the country’s AML/CFT system.

The conference provided a platform to discuss national and international implications and ensure effective implementation of the FATF action plan.

Participants included representatives from government ministries, law enforcement agencies, supervisory authorities, the judiciary, and the private sector, including commercial banks and financial institutions.

Discussions focused on strengthening cooperation between all stakeholders to enhance financial oversight and enforcement.

Lao and international experts shared technical insights on compliance, effectiveness and the application of FATF standards. Breakout sessions covered key areas such as supervision, law enforcement, prosecution and mutual legal assistance.

Delegates from Thailand, Cambodia and the Philippines shared their experiences of dealing with FATF grey listing, highlighting the challenges faced, the reforms implemented, and the consequences of non-compliance.

They noted that failure to meet FATF standards could result in financial restrictions, reduced investment, and difficulties in cross-border transactions.

The conference also stressed the need for stronger international cooperation, particularly in legal matters.

Prosecutors and courts were urged to prioritise financial crime investigations and improve cross-border legal assistance. Support was expressed for the development of an Asean platform for prosecutors and attorneys general to enhance regional cooperation.

The event highlighted that AML/CFT compliance is a shared responsibility, requiring coordinated efforts from ministries, regulators, law enforcement agencies, and the private sector.

With sustained efforts and support from international partners, Laos aims to strengthen its financial system, enhance transparency and integrate more fully into the global economy.