Support to the Anti-Money Laundering Intelligence Office (AMLIO) National Risk Assessment (NRA) subcommittee to assist in completing Lao PDR’s new AML/CFT NRA report.

As a member of the Asia/Pacific Group (APG) on Money Laundering, a regional body of the Financial Action Task Force (FATF), Lao PDR underwent a Mutual Evaluation in 2023 and is required to implement measures aligned with international anti-money laundering and counter-financing of terrorism (AML/CFT) standards.
As part of ILSTA technical assistance, ILSTA supported the Anti-Money Laundering Intelligence Office (AMLIO) National Risk Assessment (NRA) subcommittee to assist in completing Lao PDR’s new AML/CFT NRA report.
The FATF methodology requires every jurisdiction to address money laundering and terrorism financing based on the specific and potential risks present within the country.
The 11 subcommittees of the NRA, namely on Real Estate, Legal Persons, Virtual Assets Service Providers, Non-profit organizations, Banks, Casinos, Tax-Customs, Environmental Crimes, Threats, Terrorist Financing, and Vulnerability, shared with ILSTA experts their progress for each specific subcommittee and challenges in their assessment work, notably in robust data collection. Experts then provided valuable inputs on technical aspects and how to overcome these challenges based on best practices from neighboring countries that had gone through the same process.
A comprehensive national risk assessment is crucial as it will be incorporated into Lao PDR’s Post Observation Period Report, due in November, to report progress made in addressing deficiencies.
It is essential to note that failure to address the findings of the 2023 APG AML/CFT Mutual Evaluation Report could result in Lao PDR being placed on the FATF grey list, with severe economic consequences. Being placed on the grey list would lead to increased transaction costs and downgraded credit and business ratings, which in turn would adversely impact international trade, investments, aid, and currency flows.
With the support of the Luxembourg Development Cooperation, ILSTA is committed to continuing to assist Lao PDR in its efforts to align with international AML/CFT standards.