The evaluators from the Asia Pacific Group on Money Laundering and Lao officials responsible for anti-money laundering and counter-financing of terrorism gather for a photo session at the opening ceremony for the 2nd Mutual Evaluation on Monday.

APG conducts on-site evaluation of Laos’ anti-money laundering measures

The Anti-Money Laundering Intelligence Office (AMLIO) of the Bank of the Lao PDR (BOL) and the Asia Pacific Group on Money Laundering (APG) are conducting the 2nd Mutual Evaluation of the implementation of international standards against money laundering and financing of terrorism.
A series of sessions for the Mutual Evaluation during the on-site visit by the APG kicked off on Monday. The Mutual Evaluation is scheduled to conclude on September 23.
The opening ceremony was attended by the Deputy Governor of BOL, Mrs Vatthana Dalaloy.
More than 100 senior officials from nine ministries in-charge of anti-money laundering and counter-financing of terrorism (AML/CFT) and officials in-charge of reporting the progress in implementing international measures and standards for AML/CFT are participating in the work with the visiting APG members.
The mutual evaluation of AML/CFT is based on the measures and standards of the Financial Action Task Force (FATF). This includes FATF’s 40 recommendations, 247 other related issues on legal process, and the implementation strategies for AML/CFT.
During the opening ceremony, the committee for AML/CFT informed the visiting APG team about 11 effective changes as the result of the implementation of legalities, regulations and measures. This was done through statistics and case studies that showed Laos has met the standards of the FATF in recent years.
The evaluation by APG consists of four levels, including the follow-up report, enhanced follow-up report, enhanced expedited follow-up report and the review of the “Grey List” by the International Cooperation Review Group (ICRG).
The 1st Mutual Evaluation was conducted in 2010 but Laos was unable to implement the 40+9 recommendations of the FATF. Therefore, Laos was placed in the Grey List for 2013-17 and the country faced enhanced monitoring for money laundering and financing of terrorism.
This greatly impacted the political and economic image of the country during 2013-17. However, Laos was able to exit the Grey List in mid-2017 under the directions of senior government leaders and by working in collaboration with various relevant sectors.
The 2nd Mutual Evaluation for AML/CFT for Laos was scheduled in 2020-21 but the plan was extended to 2023 due to the Covid-19 outbreak.
The government formed a national coordination committee for AML/CFT, which was led by the Deputy Prime Minister and included 25 ministers and more than 150 members from subcommittees, to work on preparations for the 2nd Mutual Evaluation.
The government expects to build confidence among foreign business partners and investors by implementing the international measures, standards and obligations for AML/CFT.

By Times Reporters
(Latest Update September 13, 2022)