Source: 2000
Released by the Bureau for International Narcotics and Law Enforcement Affairs
Brunei Darussalam does not produce or consume narcotic drugs in significant quantities. Drug-related problems are relatively minor although in the past few years there has been a steady increase in drug use and drug-related arrests. There are no indications that Brunei is being used for major transshipment of illegal drugs or for money laundering. The Brunei government has a vital, proactive antidrug program led by the Narcotics Control Bureau (NCB). The Brunei government actively participates in regional activities and multilateral antidrug fora and has made substantial progress in strengthening laws pertaining to narcotics-related crime. Brunei is a party to the 1988 UN Drug Convention. Contact and cooperation with regional U.S. Drug Enforcement Agency (DEA) officials has been positive.
The quantity of illegal drugs coming to or transiting Brunei is relatively small. Brunei authorities report there is no evidence of drug syndicates operating in the country. Brunei's borders are coastlines and dense jungles intersected by rivers, making it difficult to patrol. Of primary concern to the GOB are numerous small islands in the Brunei Bay area that are Malaysian territory, and therefore out of Brunei's jurisdiction. Undocumented and unregulated illegal immigrants inhabit these islands. These illegal immigrants, thought by the NCB to be predominantly Filipino, are cited as a primary source of illegal drugs entering Brunei. Although the NCB cooperates with the GOB military and other agencies, they do not currently have adequate maritime capabilities to interdict or inspect daily inter-island boat traffic. The GOB has informally broached the "island problem" subject in bilateral police meetings with the Government of Malaysia (GOM).
Methamphetamines are the most commonly used illegal drugs, followed by cannabis.
Law Enforcement Efforts. Brunei's Narcotics Control Bureau (NCB), which leads the country's counternarcotics efforts, believes that it lacks adequate funding. Its trained staff is dedicated, professional and, although small, efficiently performs investigative and enforcement activities. Cooperation between the NCB, police, customs, and other agencies involved in counternarcotics is excellent.
Brunei vigorously prosecutes those arrested for narcotics offenses. According to GOB statistics through 10/30/2000, there has been a 21 percent increase in drug-related arrests in Brunei (from 46.5 arrests per month to 56.4 arrests per month) from 1999 to 2000. These are significant statistics, given the small population of Brunei (approximately 338,000, including 40,000 in the capital Bandar Seri Begawan where most of the arrests occurred), and the distraction of the police by the year-long security preparations for the hosting of the Asia Pacific Economic Cooperation (APEC) meetings held there in November 2000. APEC was a gigantic undertaking for the GOB and significantly impacted on the attention and resources of the police, including the NCB. Like its neighbors, Malaysia and Singapore, Brunei has a well-publicized death penalty for possession of heroin for the purpose of trafficking (more than 30 grams), for marijuana (more than 600 grams), for cocaine (more than 40 grams), and most recently for possession and trafficking in methamphetamine (more than 250 grams). As in Malaysia and Singapore, this tough policy on drugs appears to have a significant deterrent effect.
Policy Initiatives. Money laundering legislation was still undergoing legal review in late 1999, but the Brunei government announced that a law would be put into place soon. Anticipating such a law, in 1999 Brunei authorities initiated a cooperative effort with regional money laundering experts.
Brunei participates in ASEAN and other regional antidrug fora, and regularly cooperates with the Malaysian government in counternarcotics operations along common borders. Brunei drug officials also maintain regular contact with counterparts in Singapore, Thailand, and Australia.
Agreements and Treaties. There are no bilateral law enforcement treaties between the U.S. and Brunei. Brunei is a party to the 1988 UN Drug Convention.
Drug Flow/Transit. The Brunei government appears concerned about Brunei becoming a transit point for precursor chemicals but has not developed a preventive strategy yet.
Demand Reduction. The Brunei government operates one drug rehabilitation facility, which accommodates approximately 250 (voluntary and involuntary) residents. Recent government focus has been on demand reduction activities, especially targeting the use of crystal methamphetamine, known locally as syabu. In 2000 the Brunei government funded school and village programs with antidrug messages geared to six to 17-year-old students and their parents.
Corruption. There is no indication of drug-related corruption in Brunei.
Bilateral Cooperation. During 2000 the Narcotics Control Bureau and police have attended training courses at the International Law Enforcement Academy (ILEA) in Bangkok. NCB personnel recently attended a money-laundering seminar hosted by DEA in Singapore. There is excellent ad hoc cooperation with the regional DEA presence in Singapore. The recent shift by the USG to partial self-funding of Brunei participants at ILEA has had a significant negative impact on GOB participation. In spite of the obvious benefits, it is likely that GOB interest in attending ILEA will further wane when Brunei is asked to fully fund their participation. In Brunei the budget process is cumbersome to begin with, and--after recent financial problems--the GOB is remaining fiscally conservative.
The Road Ahead. The NCB continues to request further training, including technical training in a wide range of antinarcotics law enforcement techniques. Brunei needs to remain vigilant against the amphetamine-type stimulant epidemic that has beset the rest of Asia.
Brunei is not known to be a money-laundering center. It is however, an offshore financial center. The Government of Brunei has drafted anti-money laundering legislation and has evinced a strong interest in learning about methods to combat money laundering. Although Brunei has asset forfeiture laws they have not yet been applied to narcotics-related cases. Brunei's Narcotics Control Board has taken part in courses offered by ILEA in Bangkok, and recently attended a money-laundering seminar hosted by DEA in Singapore.
Earlier this year, the Sultanate of Brunei brought into effect a series of laws that established the International Financial Center: the International Business Companies Order 2000; the International Banking Order 2000; the Registered Agents and Trustees Licensing Order 2000; the International Trusts Order 2000; and the International Limited Partnerships Order.
This new offshore financial services center will offer banking services, provide for the formation of IBCs, trusts and limited partnerships. Supervisory authority is reportedly vested in a separate unit of the Ministry of Finance-referred to simply as the "Authority." Reports indicate that this entity, however, will combine both regulatory and marketing responsibilities.
Brunei is a party to the 1988 UN Drug Convention. Brunei is an observer jurisdiction to the Asia/Pacific Group on Money Laundering.