The Financial Action Task Force has published a follow-up review of Lao PDR’s anti-money laundering and counter-terrorist financing framework, concluding that the country has made progress but not enough to upgrade its rating on Recommendation 19 on higher-risk jurisdictions. As of 1 June 2025, Recommendation 19 remains rated partially compliant, Lao PDR remains on enhanced expedited follow-up, and the country has 16 FATF Recommendations rated Compliant or Largely Compliant. The review notes steps taken since the 2024 follow-up report, including a 3 March 2025 notification from the Anti-Money Laundering Intelligence Office and a 29 May 2025 amendment to customer due diligence rules requiring reporting entities to apply enhanced due diligence and countermeasures for customers from FATF-listed high-risk jurisdictions. However, the report finds that the scope of countermeasures is still not clearly defined, remains largely tied to FATF lists, and is not supported by a framework for Lao PDR to identify higher-risk jurisdictions independently and impose proportionate measures based on domestic risk assessments. It also finds no clear mandate or mechanism for authorities to systematically inform all reporting entities across sectors about AML and CFT weaknesses in other jurisdictions. Notifications issued in August 2025 were not taken into account because they fell after the 1 June 2025 reporting deadline. The report recommends that Lao PDR continue reporting under the APG follow-up process. Lao PDR indicated that more detailed regulations on countermeasures and notification procedures are expected by the second quarter of 2026, but these measures were not in force by the reporting deadline and will be assessed in future reporting once implemented.
Financial Action Task Force2026-04-01
Financial Action Task Force keeps Lao PDR partially compliant on Recommendation 19 in follow-up review
The Financial Action Task Force’s follow-up review of Lao PDR’s anti-money laundering and counter-terrorist financing framework finds progress but maintains a partially compliant rating on Recommendation 19 on higher-risk jurisdictions, with Lao PDR remaining on enhanced expedited follow-up and 16 Recommendations rated Compliant or Largely Compliant. The report notes new enhanced due diligence and countermeasure requirements for customers from FATF-listed high-risk jurisdictions but highlights gaps in defining and calibrating countermeasures domestically and in mechanisms to systematically inform reporting entities of foreign AML/CFT weaknesses.