Identifier
Created
Classification
Origin
06COLOMBO1859
2006-11-08 08:33:00
UNCLASSIFIED
Embassy Colombo
Cable title:
2006-2007 INTERNATIONAL NARCOTICS CONTROL STRATEGY REPORT
how-toVZCZCXYZ0009 PP RUEHWEB DE RUEHLM #1859 3120833 ZNR UUUUU ZZH P 080833Z NOV 06 FM AMEMBASSY COLOMBO TO RUEHC/SECSTATE WASHDC PRIORITY 4666 INFO RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RUEAWJL/DEPT OF JUSTICE WASHDC PRIORITY RUEHNE/AMEMBASSY NEW DELHI 0171 RUEHKA/AMEMBASSY DHAKA 9570 RUEHIL/AMEMBASSY ISLAMABAD 6491 RUEHKT/AMEMBASSY KATHMANDU 4545
UNCLAS COLOMBO 001859
SIPDIS
SIPDIS
STATE FOR INL, SCA/INS
JUSTICE FOR AFMLS, OIA AND OPDAT
TREASURY FOR FINCEN
E.O. 12958: N/A
TAGS: KTFN EFIN PTER SNAR KCRM MV
SUBJECT: 2006-2007 INTERNATIONAL NARCOTICS CONTROL STRATEGY REPORT
(INCSR) PART II, MONEY LAUNDERING AND FINANCIAL CRIMES, MALDIVES
REF: STATE 157000
UNCLAS COLOMBO 001859
SIPDIS
SIPDIS
STATE FOR INL, SCA/INS
JUSTICE FOR AFMLS, OIA AND OPDAT
TREASURY FOR FINCEN
E.O. 12958: N/A
TAGS: KTFN EFIN PTER SNAR KCRM MV
SUBJECT: 2006-2007 INTERNATIONAL NARCOTICS CONTROL STRATEGY REPORT
(INCSR) PART II, MONEY LAUNDERING AND FINANCIAL CRIMES, MALDIVES
REF: STATE 157000
1. UPDATED RESPONSE TO REFTEL FOLLOWS:
2. Maldives is not an important regional financial center. The
financial sector of the Maldives is very small, with five commercial
banks (one international bank, three branches of public banks from
neighboring countries and the state owned bank),two insurance
companies, and a government provident fund. There are no offshore
banks.
3. Maldives Monetary Authority (MMA) is the regulatory agency for
the financial sector. The MMA has authority to supervise the
banking system through the Maldives Monetary Authority Act. These
laws and regulations provide the MMA with access to records of
financial institutions and allow it to take actions against
suspected criminal activities. Banks are required to report any
unusual movement of funds through the banking system on a daily
basis. Separate laws address the narcotics trade, terrorism, and
corruption: Law No. 17/77 on Narcotic Drugs and Psychotropic
Substances prohibits consumption and trafficking of illegal
narcotics. The law also prohibits laundering of proceeds from the
illicit narcotics trade. Law No 2/2000 on Prevention and
Prohibition of Corruption prohibits corrupt activities by both
public and private sector officials. It also provides for the
forfeiture of proceeds and empowers judicial authorities to freeze
accounts pending a court decision.
4. The Government of Maldives has drafted anti-money laundering
legislation with IMF assistance. The government has also created a
Financial Intelligence Unit (FIU) within the MMA. According to the
MMA, the main functions of the FIU are to receive information on
suspicious transactions, analyze and refer to investigation and law
enforcement agencies. The FIU is not yet fully functional.
Currently, there are no laws or regulations governing the FIU.
Regulations to cover the FIU are expected to be included in the
money laundering legislation.
5. Law No. 10/90 on Prevention of Terrorism in the Maldives deals
with some aspects of money laundering and terrorist financing.
Provision of funds or any form of assistance towards the
commissioning or planning of any such terrorist activity is
unlawful. The MMA has issued "know your customer" directives and
other instructions to banks, including freezing order requests,
which are binding on banks and other financial institutions. The
MMA monitors unusual financial transactions through banks, financial
institutions, and money transfer companies through its bank
supervision activities. The four foreign banks operating in the
country also follow directives issued with regard to terrorist
financing by their parent organizations. To date, there have been no
known cases of terrorist financing activities through banks in the
Maldives.
6. The Maldives is a party to the 1988 UN Drug Convention and to
the 1999 UN International Convention for the Suppression of the
Financing of Terrorism. The Maldives has not signed the UN
Convention against Transnational Organized Crime and the UN
Convention against Corruption.
BLAKE
SIPDIS
SIPDIS
STATE FOR INL, SCA/INS
JUSTICE FOR AFMLS, OIA AND OPDAT
TREASURY FOR FINCEN
E.O. 12958: N/A
TAGS: KTFN EFIN PTER SNAR KCRM MV
SUBJECT: 2006-2007 INTERNATIONAL NARCOTICS CONTROL STRATEGY REPORT
(INCSR) PART II, MONEY LAUNDERING AND FINANCIAL CRIMES, MALDIVES
REF: STATE 157000
1. UPDATED RESPONSE TO REFTEL FOLLOWS:
2. Maldives is not an important regional financial center. The
financial sector of the Maldives is very small, with five commercial
banks (one international bank, three branches of public banks from
neighboring countries and the state owned bank),two insurance
companies, and a government provident fund. There are no offshore
banks.
3. Maldives Monetary Authority (MMA) is the regulatory agency for
the financial sector. The MMA has authority to supervise the
banking system through the Maldives Monetary Authority Act. These
laws and regulations provide the MMA with access to records of
financial institutions and allow it to take actions against
suspected criminal activities. Banks are required to report any
unusual movement of funds through the banking system on a daily
basis. Separate laws address the narcotics trade, terrorism, and
corruption: Law No. 17/77 on Narcotic Drugs and Psychotropic
Substances prohibits consumption and trafficking of illegal
narcotics. The law also prohibits laundering of proceeds from the
illicit narcotics trade. Law No 2/2000 on Prevention and
Prohibition of Corruption prohibits corrupt activities by both
public and private sector officials. It also provides for the
forfeiture of proceeds and empowers judicial authorities to freeze
accounts pending a court decision.
4. The Government of Maldives has drafted anti-money laundering
legislation with IMF assistance. The government has also created a
Financial Intelligence Unit (FIU) within the MMA. According to the
MMA, the main functions of the FIU are to receive information on
suspicious transactions, analyze and refer to investigation and law
enforcement agencies. The FIU is not yet fully functional.
Currently, there are no laws or regulations governing the FIU.
Regulations to cover the FIU are expected to be included in the
money laundering legislation.
5. Law No. 10/90 on Prevention of Terrorism in the Maldives deals
with some aspects of money laundering and terrorist financing.
Provision of funds or any form of assistance towards the
commissioning or planning of any such terrorist activity is
unlawful. The MMA has issued "know your customer" directives and
other instructions to banks, including freezing order requests,
which are binding on banks and other financial institutions. The
MMA monitors unusual financial transactions through banks, financial
institutions, and money transfer companies through its bank
supervision activities. The four foreign banks operating in the
country also follow directives issued with regard to terrorist
financing by their parent organizations. To date, there have been no
known cases of terrorist financing activities through banks in the
Maldives.
6. The Maldives is a party to the 1988 UN Drug Convention and to
the 1999 UN International Convention for the Suppression of the
Financing of Terrorism. The Maldives has not signed the UN
Convention against Transnational Organized Crime and the UN
Convention against Corruption.
BLAKE