(10)Laos made a high-level political commitment in February 2025 to work with the FATF and the Asia/Pacific Group on Money Laundering (APG), which is its FSRB, to strengthen the effectiveness of its AML/CFT regime. Since the adoption of its MER in August 2023, Laos has made progress on some of the actions recommended in the MER, including by increasing FIU resources and eliminating bearer shares. Laos will continue to work with the FATF to implement its FATF action plan by: enhancing its understanding of ML/TF risks; improving risk-based supervision of casinos, banks and reporting entities in Special Economic Zones, including fit and proper checks; enhancing the quality and quantity of financial intelligence analysis and spontaneous dissemination to law enforcement agencies; ensuring that law enforcement agencies receive training and guidance on money laundering; demonstrating an increase in ML investigations and prosecutions in line with Laos’ risk profile with an emphasis on crimes with a transnational element that require international cooperation; developing a national confiscation policy consistent with its ML/TF risks; demonstrating that relevant competent authorities are taking measures to identify, seize and, where applicable, confiscate proceeds and instrumentalities of crime in line with the risk profile; monitoring FIs’ and DNFBPs’ compliance with TFS for proliferation financing (PF) obligations; and addressing technical compliance deficiencies in FATF Recommendations 5, 6, 7 and 10. While recognising and welcoming the commitment and progress made by Laos so far, and encouraging further efforts, the Commission concludes that Laos has not yet fully addressed the concerns that led to its addition to the FATF’s list of ‘Jurisdictions under Increased Monitoring’. Laos should therefore be considered a high-risk third country.