ILSTA paid a courtesy visit to H.E. Vathana Dalaloy, Deputy Governor of the Bank of the Lao PDR (BOL), to discuss the practical steps needed to implement Lao PDR’s Joint Group Action Plan and support the country’s removal from the FATF grey list.
With the January 2027 deadline approaching, ILSTA provided detailed technical feedback on outstanding requirements, the evidence needed to demonstrate progress, and priorities for assistance over the coming three months.
BOL plays a central role in this effort through its supervision of the banking sector, its role in the National Coordination Committee for Anti-Money Laundering and Countering the Financing of Terrorism (NCC), and its institutional support to the Anti-Money Laundering Intelligence Office (AMLIO), the country’s financial intelligence unit.
Lao PDR has been under increased monitoring by the Financial Action Task Force (FATF) since February 2025. The FATF sets international standards for combating money laundering, terrorist financing and proliferation financing. Countries on its “grey list” commit to addressing identified weaknesses within agreed timeframes.
Exiting the grey list requires more than adopting laws and regulations.
Lao PDR must demonstrate that its system delivers results: effective supervision, financial intelligence that supports investigations, money laundering prosecutions, and the tracing, seizure and confiscation of criminal assets. Reliable data and documented cases are essential to demonstrate this progress.
The meeting reaffirmed the close cooperation between ILSTA and BOL, with discussions covering both immediate priorities and sustained technical assistance to build long-term institutional capacity.
It also provided an opportunity to discuss human resource development ahead of the next mutual evaluation by the Asia/Pacific Group on Money Laundering (APG), expected in 2029–2030, including the role of the Banking Institute, which is affiliated with BOL.
ILSTA will continue working closely with BOL, AMLIO, the NCC and other relevant authorities to support implementation of the Action Plan and Lao PDR’s efforts to exit the FATF grey list.
