Country Reports on Terrorism 2013 - Maldives

Overview: Maldives, an archipelago consisting of nearly 1,200 coral islands grouped into 26 atolls, is strategically located close to international sea lanes bisecting the Indian Ocean. Since 2010, concerns about the activities of a small number of local violent extremists involved with transnational terrorist groups have been mounting. There has been particular concern that young Maldivians, including those within the penal system, may be at risk of becoming radicalized and joining violent Islamist extremist groups. Links have been made between Maldivians and violent extremists throughout the world.

Legislation, Law Enforcement, and Border Security: In 2013, the Maldivian government arrested several people possibly associated with violent extremism. However, since existing laws and law enforcement processes severely limit the ability of law enforcement agencies to prosecute such cases, the number of convictions was limited.

Maldives continued to participate in the Department of State's Antiterrorism Assistance (ATA) program. ATA training focused on building capacity in counterterrorism leadership and management, critical target protection, and crisis management. ATA training included courses in securing maritime and other vital infrastructure from terrorism-related threats. The State Department also provided training to more than 100 Maldivian immigration officers in fraudulent travel document recognition.

Maldives has few laws that effectively control the movement of people and money in and out of the country. Due to its sprawling island geography and insufficient technological capabilities, the Maldivian Coast Guard currently cannot effectively patrol Maldivian waters. In August, the Maldivian government worked with the United States to upgrade its border security with installation of the PISCES system (Personal Identification Secure Comparison and Evaluation System) at Maldives' main international airport and at Malé Seaport.

Countering the Financing of Terrorism: Maldives is a member of the Asia/Pacific Group on Money Laundering, a Financial Action Task Force-style regional body. Maldivian authorities believe that funds are currently being raised in Maldives to support terrorism abroad; however, there is no reliable information regarding the amounts involved. While no official studies yet have been conducted, the Maldivian Central Bank believes that criminal proceeds mainly come from domestic sources, as a large percentage of Suspicious Transaction Reports (STRs) are related to Maldivians. The Maldives Monetary Authority reports that hawala systems (informal money transfer networks) are being used to transfer funds between the islands, although the extent to which these systems are used to launder money is still unclear.

The Maldivian government monitors banks, the insurance sector, money remittance institutions and finance companies, and requires the collection of data for wire transfers. Financial institutions other than banks and intermediaries in the securities sector, however, are not subject to current anti-money laundering/countering the financing of terrorism (AML/CFT) obligations. Insurance companies and intermediaries, finance companies, money remittance service providers, foreign exchange businesses, and credit card companies therefore operate outside the AML/CFT framework. Maldives does not currently require non-profit organizations to file suspicious transaction reports, nor does it regulate or monitor those organizations to prevent misuse and terrorist financing.

The Maldivian government implements UNSCRs 1267 (1999) and follow-on resolutions and 1373 (2001), and monitors and regulates alternative remittance services, despite the fact that they lie outside the AML/CFT framework. The Maldivian government did not report any efforts to seize terrorist assets in 2013.

According to the Maldivian government, capacity building of relevant supervisory and regulatory authorities (such as the Maldives Monetary Authority and the Capital Market Development Authority), as well as law enforcement authorities (the Anti-Corruption Commission, Department of Immigration and Emigration, Maldives Customs Service, and Maldives Police Service), and the judiciary is needed in order to properly counter money laundering and terrorist financing. For further information on money laundering and financial crimes, see the 2014 International Narcotics Control Strategy Report (INCSR), Volume 2, Money Laundering and Financial Crimes: http://www.state.gov/j/inl/rls/nrcrpt/index.htm.

Regional and International Cooperation: The Maldivian government cooperated closely with Indian security forces, who offered regular support in the form of assets and training to Maldivian security forces. The Maldivian government also cooperated closely with the Sri Lankan government.

Countering Radicalization to Violence and Violent Extremism: The Maldivian government continued to recognize that counter-radicalization efforts form a critical component to long-term success against violent extremism and pursued initiatives in this area. In 2013, the Ministry of Islamic Affairs conducted more than a dozen seminars and workshops on preventing violent extremism for religious leaders, educators, and local government officials.