BRUNEI
Summary

Sanctions

None

FAFT AML Deficient

No

Higher Risk Areas

Not on EU White list equivalent jurisdictions

Offshore Finance Centre

Compliance of OECD Global Forumís information exchange standard

Medium Risk Areas

 

Non - Compliance with FATF 40 + 9 Recommendations

Corruption Index (Transparency International & W.G.I.)

Failed States Index (Political Issues)(Average Score)

 

 

ANTI-MONEY LAUNDERING

 

FATF Status

Brunei is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

 

Latest FATF Statement - 21 June 2013

The FATF welcomes Brunei Darussalamís significant progress in improving its AML/CFT regime and notes that Brunei Darussalam has established the legal and regulatory framework to meet its commitments in its Action Plan regarding the strategic deficiencies that the FATF had identified in June 2011. Brunei Darussalam is therefore no longer subject to FATFís monitoring process under its on-going global AML/CFT compliance process. Brunei Darussalam will work with the APG as it continues to address the full range of AML/CFT issues identified in its Mutual Evaluation Report.

 

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Brunei was undertaken by the Financial Action Task Force (FATF) in 2005. According to that Evaluation, Brunei was deemed Compliant for 3 and Largely Compliant for 16 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for 1 of the 6 Core Recommendations.

 

APG Yearly Typologies Report - 2015

Emerging Trends; Declining Trends; Continuing Trends (INCSR)

Based on case studies provided by various law enforcement agencies on investigations conducted into predicate offences, the FIU is of the view that there is an emerging trend of predicate offences associated with unlicensed financial activity within the formal sector.

In addition to the above, the FIU is of the view that there is a continuing trend being reported in Suspicious Transactions Reports of mingling of personal and company funds in accounts held by persons.

 

US Department of State Money Laundering assessment (INCSR)

Brunei was deemed a ĎMonitoredí Jurisdiction by the US Department of State 2016 International Narcotics Control Strategy Report (INCSR).

Key Findings from the report are as follows: -

 

Perceived Risks:

Brunei is not a regional financial center. Brunei does have a small offshore financial center and its proximity to high crime regions, along with its large foreign worker population and limited AML/CFT institutional capacity, make it vulnerable to cross-border criminal activity. Domestically, Brunei is a low threat country for money laundering and terrorism financing. Proceeds of crime generally originate from fraud, gambling, the drug trade, and fuel smuggling. There are also concerns about an increase in cybercrime, and in particular, financial fraud, such as pyramid schemes and e-mail scams. Gambling is illegal, and Brunei has a mandatory death penalty for many narcotics offenses, although it has not been used for many years.

 

____________________________________________________________________________________

 

SANCTIONS

There are no international sanctions currently in force against this country.

 

____________________________________________________________________________________

 

BRIBERY & CORRUPTION

 

Index

Rating (100-Good / 0-Bad)

Transparency International Corruption Index

58

World Governance Indicator Ė Control of Corruption

73

 

____________________________________________________________________________________

 

INVESTMENT CLIMATE - Executive Summary (US State Department)

Brunei Darussalam is an energy-rich Sultanate on the northern coast of Borneo in Southeast Asia. Brunei boasts a well-educated, largely English-speaking population, excellent infrastructure, and a government intent on attracting foreign investment and projects. In parallel with Bruneiís efforts to attract foreign investment, the country has improved its protections for Intellectual Property Rights (IPR).

Despite repeated calls for diversification, Bruneiís economy remains dependent on the income derived from sales of oil and gas. Substantial revenue from overseas investment supplements income from domestic production. These two revenue streams provide a comfortable quality of life for Bruneiís population. Citizens pay no taxes and receive free education through to the university level as well as free medical care and, frequently, subsidized housing.

Bruneiís central location in Southeast Asia, with good telecommunications and airline connections; no personal income, sales or export taxes; and its stable political situation offer a welcoming climate for would-be investors, with tax relief programs in specified sectors. Brunei is a participant in the Trans-Pacific Partnership (TPP) trade negotiations.

Sectors offering U.S. business opportunities in Brunei include Aerospace & Defense, Agribusiness, Construction, Petrochemicals, Energy & Mining, Environmental Technologies, Food Processing & Packaging, Franchising, Health Technologies, Information & Communication, and Services.

In 2014 Brunei released an Energy White Paper outlining its vision of leveraging its oil wealth to diversify its economy, create local employment, increase foreign investment and sharply increase the use of renewable energy by 2035.

The Export-Import Bank of the United States (Ex-Im) and the Energy Department of Bruneiís Prime Ministerís Office signed a Memorandum of Understanding that calls for expanded information sharing regarding trade and energy business opportunities in the Asia-Pacific region as well as exploring options for utilizing up to US$1 billion Ex-IM Bank loans to finance U.S. exports in support of selected projects in the region. The MOU creates significant new opportunities for U.S. energy companies in Brunei and the Asia-Pacific region while advancing the goals set out by the United States-Asia Pacific Comprehensive Energy Partnership (USACEP).

In 2014 Brunei began implementing a penal code based on Islamic law (Sharia), in parallel with the existing Common Law-based criminal law system. The Sharia Penal Code is applicable to both Muslims and non-Muslims, including foreigners residing in Brunei. The first phase became effective on May 1, 2014. It expands restrictions in areas such as drinking alcohol, eating in public during fasting hours in the month of Ramadan, and indecent behavior. Two subsequent phases, the timing of which is not yet clear, are expected to introduce severe punishments such as stoning to death for certain sex-related offenses including anal sex and amputating the hands of thieves. Brunei officials say the most severe punishments will rarely if ever be implemented, given the very high standards for evidence and witnesses under the Sharia Penal Code. While the law does not specifically address business-related matters, potential investors should be aware that there is controversy surrounding the Sharia Penal Code issue.

 

 

 

This is my page