APG keeps Lao PDR higher-risk countries rating partially compliant
Lao PDR AML authorities must strengthen high-risk country countermeasure rules after APG refused the R.19 upgrade
FATF
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Change
APG kept Lao PDR's FATF Recommendation 19 rating at partially compliant, finding insufficient progress on higher-risk country countermeasures and communication to reporting entities.
Why it matters
The follow-up report keeps Lao PDR under pressure to strengthen how reporting entities handle higher-risk jurisdictions. Authorities must define countermeasures beyond enhanced due diligence, evidence independent high-risk country identification, and establish timely communication mechanisms so all reporting entities receive clear jurisdiction-risk guidance.
Implications
- — Lao PDR AML/CFT authorities must define a broader and proportionate range of countermeasures for higher-risk jurisdictions beyond enhanced due diligence.
- — AMLIO must establish a clear mandate and communication mechanism to advise reporting entities of weaknesses in foreign AML/CFT systems and jurisdiction-specific risks.
- — Reporting entities in Lao PDR must continue applying enhanced scrutiny to FATF-listed high-risk and increased-monitoring jurisdictions while awaiting clearer countermeasure guidance.
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