(From left) Mr Chindamay Vilaihong, Ms Phengsy Phengmeuang and Mr Richard Phillippart address the conference.

Conference sheds light on Laos’ anti-money laundering efforts

A conference on the 2023 Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Mutual Evaluation of Laos and the Way Forward concluded in Vangvieng district, Vientiane province last week.
This event, jointly organised by the AML Intelligence Office (AMLIO) and the Institute for Legal Support and Technical Assistance (ILSTA), was a significant event for the AML/CFT efforts of Laos.
As a member of the Asia/Pacific Group on Money Laundering (APG), which is a regional body of the FATF, Laos underwent a Mutual Evaluation. The report was adopted at the APG Annual Meeting in July 2023 and the country is required to take action to comply with international standards.
Supported by the Luxembourg Development Cooperation and the Ministry of Finance of Luxembourg, the conference provided an invaluable platform for participants to dive deep into the specifics of the APG Mutual Evaluation report, guided by a team of international experts.

Experts from the ILSTA and other participants at the conference.

These experts provided insights and guidelines to facilitate the efficient implementation of FATF’s recommendations. Moreover, breakout sessions led by these experts allowed for the sharing of personal experiences in implementing these recommendations and the relevant measures required to meet FATF’s rigorous standards.
The event garnered representation from a multitude of line authorities from central authorities, supervision authorities and law enforcement agencies. Delegates from various ministries contributed to the conference’s dynamic discussions, promoting the exchange of ideas and fostering collaboration among the various stakeholders.
An important point to emphasise is that AML/CFT efforts extend far beyond the banking sector. They encompass a wide range of government entities, including law enforcement and judiciary, supervisory authorities, making it a collective national responsibility for a wide variety of authorities which need to demonstrate effectiveness to the FATF in addressing money laundering and the financing of terrorism.
As many in attendance are well aware, the Financial Action Task Force (FATF) sets international standards aimed at combating money laundering, terrorist financing, and threats to the international financial system.
These recommendations are mandatory, and governments and jurisdictions around the world must comply with them.
It is crucial to underline that non-compliance with FATF recommendations can have severe consequences for a country’s economy, affecting international trade, investment, aid, and currency flows.
Cross-border transactions can become costlier, and credit and business ratings may be downgraded. Correspondent financial links may also be restricted, potentially leading to de-risking of financial institutions.
The conference was attended by the Director of the Anti-Money Laundering Information Office, Mr Chindamay Vilaihong; Director General of the International Cooperation Department of the Bank of the Lao PDR, Ms Phengsy Phengmeuang; and Director General of ILSTA, Mr Richard Phillippart; and invited guests.

By Advertorial Desk
 (Latest Update November 17, 2023)