The Effectiveness of Maldives’ Financial Intelligence Unit in Combating Money Laundering

Abstract

Money laundering has become a vast global concern, and the rates are growing. Hence, there is a need for a good preventive and monitoring mechanism that monitors suspicious transactions at the source. In Maldives, a Financial Intelligence Unit (FIU) was introduced to gather, analyse, and provide financial intelligence report to law enforcement agencies to proceed with an investigation. The FIU plays a vital role in the Anti-Money Laundering (AML) Regime in successfully combat money laundering activities. Since the AML Regime in Maldives was established in 2014, there is a need to conduct a study to investigate the effectiveness of the FIU in combating money laundering in the Maldives. Based on questionnaires collected from 122 enforcement officers, findings show that reporting mechanisms significantly influence the effectiveness of the FIU. The legal framework and the role of the officer did not significantly influence the effectiveness of FIU. It shows that the competency of LEAs in combating money laundering in the Maldives is still low. Therefore, the government needs to enhance the awareness and competencies of enforcement officers in combating money laundering. Future research may conduct a comparative study to understand further the best reporting mechanism that can help enhance the effectiveness of law enforcement agencies. Keywords: financial intelligence unit, money laundering, reporting mechanism

The Nexus of Cybercrime and Money Laundering: A Conceptual Paper

“…The role of auditors is also highlighted in reducing the effects of money laundering, emphasizing the need for a comprehensive approach involving various stakeholders (Yusoff et al, 2023). Furthermore, the effectiveness of the Financial Intelligence Unit (FIU) and reporting mechanisms are crucial in combating money laundering (Ahmed et al, 2021).…”

“…The gaps in the legal framework for combating money laundering in Malaysia also extend to the role and effectiveness of the Financial Intelligence Unit (FIU). The lack of a legal framework and effective role of the FIU in combating money laundering activities in Malaysia suggests a need for strengthening the institutional and regulatory mechanisms to enhance the effectiveness of the legal framework (Ahmed et al, 2021). Furthermore, there are instrumental and normative deficiencies in the Anti-Money Laundering/Counter Financing of Terrorism (AML/CFT) law in Malaysia, indicating the need for comprehensive reforms to address the remaining deficiencies and ensure the legal framework's sufficiency in preventing and regulating money laundering and terrorist financing within the country (Hamin, 2017).…”

Financial intelligence unit of Pakistan: an evaluation of its performance and role in combating money laundering and terrorist financing

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