US State Dept Narcotics Report 2011 (introduction):
No report available
US State Dept Trafficking in Persons Report 2010 (introduction):
(Tier 2 Watch List)
The Maldives is primarily a destination country for migrant workers from
Bangladesh, and, to a lesser extent, India, some of whom are subjected
to trafficking in persons, specifically forced labor. Some women are also
subjected to forced prostitution. An unknown number of the 110,000
foreign workers currently working in the Maldives – primarily in the
construction and service sectors – face fraudulent recruitment practices,
confiscation of identity and travel documents, withholding or non-
payment of wages, or debt bondage. Thirty thousand of these workers
do not have legal status in the country, though both legal and illegal
workers were vulnerable to conditions of forced labor. Diplomatic
sources estimate that half of the 35,000 Bangladeshis in the Maldives
went there illegally and that most of these workers are probably victims
of trafficking. Migrant workers pay $1,000 to $4,000 in recruitment fees
in order to migrate to the Maldives; such high recruitment costs increase
workers’ vulnerability to forced labor, as concluded in a recent ILO report.
A small number of women from Sri Lanka, Thailand, India, China, the
Philippines, Eastern Europe, and former Soviet Union countries are
recruited for forced prostitution in Male, the capital. A small number of
underage Maldivian girls reportedly are trafficked to Male from other
islands for involuntary domestic servitude; this is a corruption of the
widely acknowledged practice where families send Maldivian girls to live
with a host family in Male for educational purposes.
Trafficking offenders usually fall into three groups: families that subject
domestic servants to forced labor; employment agents who bring low-
skilled migrant workers to the Maldives under false terms of employment
and upon payment of high fees; and employers who subject the migrants
to conditions of forced labor upon arrival.
The Government of the Maldives does not comply with the minimum
standards for the elimination of trafficking in persons; however, it is
making significant efforts to do so. Despite these efforts, the government
lacks systematic procedures for identifying victims of trafficking among
vulnerable populations, and during the reporting period it did not
investigate or prosecute trafficking-related offenses or take concrete
actions to protect trafficking victims and prevent trafficking in the
Maldives. Therefore, the Maldives is placed on Tier 2 Watch List. After
30 years of one-party rule, the new government – formed in 2009 – is
continuing to build the institutions of democratic governance.
For full report, click here
Links:
Worldwide AML Legislation (International Bar Association)
No report available
US State Dept Trafficking in Persons Report 2010 (introduction):
(Tier 2 Watch List)
The Maldives is primarily a destination country for migrant workers from
Bangladesh, and, to a lesser extent, India, some of whom are subjected
to trafficking in persons, specifically forced labor. Some women are also
subjected to forced prostitution. An unknown number of the 110,000
foreign workers currently working in the Maldives – primarily in the
construction and service sectors – face fraudulent recruitment practices,
confiscation of identity and travel documents, withholding or non-
payment of wages, or debt bondage. Thirty thousand of these workers
do not have legal status in the country, though both legal and illegal
workers were vulnerable to conditions of forced labor. Diplomatic
sources estimate that half of the 35,000 Bangladeshis in the Maldives
went there illegally and that most of these workers are probably victims
of trafficking. Migrant workers pay $1,000 to $4,000 in recruitment fees
in order to migrate to the Maldives; such high recruitment costs increase
workers’ vulnerability to forced labor, as concluded in a recent ILO report.
A small number of women from Sri Lanka, Thailand, India, China, the
Philippines, Eastern Europe, and former Soviet Union countries are
recruited for forced prostitution in Male, the capital. A small number of
underage Maldivian girls reportedly are trafficked to Male from other
islands for involuntary domestic servitude; this is a corruption of the
widely acknowledged practice where families send Maldivian girls to live
with a host family in Male for educational purposes.
Trafficking offenders usually fall into three groups: families that subject
domestic servants to forced labor; employment agents who bring low-
skilled migrant workers to the Maldives under false terms of employment
and upon payment of high fees; and employers who subject the migrants
to conditions of forced labor upon arrival.
The Government of the Maldives does not comply with the minimum
standards for the elimination of trafficking in persons; however, it is
making significant efforts to do so. Despite these efforts, the government
lacks systematic procedures for identifying victims of trafficking among
vulnerable populations, and during the reporting period it did not
investigate or prosecute trafficking-related offenses or take concrete
actions to protect trafficking victims and prevent trafficking in the
Maldives. Therefore, the Maldives is placed on Tier 2 Watch List. After
30 years of one-party rule, the new government – formed in 2009 – is
continuing to build the institutions of democratic governance.
For full report, click here
Links:
Worldwide AML Legislation (International Bar Association)
|
| Local AML/Sanctions Information General Information Local Service Providers |
| KnowYourCountry |
|
Sanctions:
None applicable
Offshore Jurisdiction Blacklists:
Information unavailable.
US State Department Money Laundering Report - March
2010:
Maldives is not an important regional financial center. The
financial sector of the Maldives is very small, with five commercial
banks, two insurance companies, and a government provident
fund. Although the crime rate in the Maldives is considered low,
there is an increasing use of narcotics. The Maldives is located in
an area prone to narcotics smuggling making the Maldives
vulnerable as a transit point for shipments of illicit drugs meant for
other nations and the laundering of narcotics proceeds.
Offshore Center: No
Free Trade Zones:
No information available.
Criminalizes narcotics money laundering: Yes
Law No. 17/77 on Narcotic Drugs and Psychotropic Substances
prohibits trafficking of illegal narcotics and the laundering of
proceeds from the illicit narcotics trade.
Criminalizes other money laundering, including terrorism-related:
No
The Government of Maldives (GOM) has drafted broader anti-
money laundering legislation.
Criminalizes terrorist financing:
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 terrorist activity is unlawful.
Know-your-customer rules: Yes
The Maldives Monetary Authority has issued know-your-customer
directives.
Bank records retention:
No information available.
Suspicious transaction reporting: Yes
The GOM has created a financial intelligence unit (FIU) within the
Maldives Monetary Authority (MMA). The main functions of the FIU
are to receive and analyze information on suspicious
transactions, and, as appropriate, refer it for investigation to law
enforcement agencies. The FIU is at an early stage of
development. In the short term, the FIU operates under
regulations and circulars issued under the MMA act of 1981.
Regulations to cover the FIU are expected to be included in the
new money laundering legislation. Through October 2009, the FIU
only processed four suspicious transaction reports.
Large currency transaction reporting:
No information available.
Narcotics asset seizure and forfeiture:
No information available.
Narcotics asset sharing authority:
No information available.
Cross-border currency transportation requirements:
No information available.
Cooperation with foreign governments:
No information available.
U.S. or international sanctions or penalties: No
Enforcement and implementation issues and comments:
The FIU distributes the United Nations’ lists of the proscribed
people and organizations. The Maldives does not have a national
sanctions list.
U.S.-related currency transactions:
No information available.
Records exchange mechanism with U.S.:
No information available.
International agreements:
The GOM is a party to:
* the UN Convention for the Suppression of the Financing of
Terrorism - Yes
* the UN Convention against Transnational Organized Crime - No
* the 1988 UN Drug Convention - Yes
* the UN Convention against Corruption - No
In 2008, the Maldives became a member of the Asia/Pacific Group
on Money Laundering (APG), a Financial Action Task Force-style
regional body. Maldives has not yet had a mutual evaluation.
Recommendations:
The Government of the Maldives (GOM) is developing its anti-
money laundering/counter-terrorist financing (AML/CFT) system.
The Maldives is in the process of drafting AML/CFT laws and
should work closely with the APG to ensure that countermeasures
adhere to international standards. The GOM should pass its draft
anti-money laundering law and provide adequate resources and
training to its new FIU to enable it to fulfill its responsibilities.
None applicable
Offshore Jurisdiction Blacklists:
Information unavailable.
US State Department Money Laundering Report - March
2010:
Maldives is not an important regional financial center. The
financial sector of the Maldives is very small, with five commercial
banks, two insurance companies, and a government provident
fund. Although the crime rate in the Maldives is considered low,
there is an increasing use of narcotics. The Maldives is located in
an area prone to narcotics smuggling making the Maldives
vulnerable as a transit point for shipments of illicit drugs meant for
other nations and the laundering of narcotics proceeds.
Offshore Center: No
Free Trade Zones:
No information available.
Criminalizes narcotics money laundering: Yes
Law No. 17/77 on Narcotic Drugs and Psychotropic Substances
prohibits trafficking of illegal narcotics and the laundering of
proceeds from the illicit narcotics trade.
Criminalizes other money laundering, including terrorism-related:
No
The Government of Maldives (GOM) has drafted broader anti-
money laundering legislation.
Criminalizes terrorist financing:
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 terrorist activity is unlawful.
Know-your-customer rules: Yes
The Maldives Monetary Authority has issued know-your-customer
directives.
Bank records retention:
No information available.
Suspicious transaction reporting: Yes
The GOM has created a financial intelligence unit (FIU) within the
Maldives Monetary Authority (MMA). The main functions of the FIU
are to receive and analyze information on suspicious
transactions, and, as appropriate, refer it for investigation to law
enforcement agencies. The FIU is at an early stage of
development. In the short term, the FIU operates under
regulations and circulars issued under the MMA act of 1981.
Regulations to cover the FIU are expected to be included in the
new money laundering legislation. Through October 2009, the FIU
only processed four suspicious transaction reports.
Large currency transaction reporting:
No information available.
Narcotics asset seizure and forfeiture:
No information available.
Narcotics asset sharing authority:
No information available.
Cross-border currency transportation requirements:
No information available.
Cooperation with foreign governments:
No information available.
U.S. or international sanctions or penalties: No
Enforcement and implementation issues and comments:
The FIU distributes the United Nations’ lists of the proscribed
people and organizations. The Maldives does not have a national
sanctions list.
U.S.-related currency transactions:
No information available.
Records exchange mechanism with U.S.:
No information available.
International agreements:
The GOM is a party to:
* the UN Convention for the Suppression of the Financing of
Terrorism - Yes
* the UN Convention against Transnational Organized Crime - No
* the 1988 UN Drug Convention - Yes
* the UN Convention against Corruption - No
In 2008, the Maldives became a member of the Asia/Pacific Group
on Money Laundering (APG), a Financial Action Task Force-style
regional body. Maldives has not yet had a mutual evaluation.
Recommendations:
The Government of the Maldives (GOM) is developing its anti-
money laundering/counter-terrorist financing (AML/CFT) system.
The Maldives is in the process of drafting AML/CFT laws and
should work closely with the APG to ensure that countermeasures
adhere to international standards. The GOM should pass its draft
anti-money laundering law and provide adequate resources and
training to its new FIU to enable it to fulfill its responsibilities.
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| MALDIVES |
| Last Updated: 19 January 2011 |