Source: 2001
Released by the Bureau for International Narcotics and Law Enforcement Affairs
Brunei is not a major consumer, producer, or transit country for narcotics, but it is possible that narcotics traffickers use Brunei's waterways to ship narcotics around the region. There has been an apparent shift to the use of boats as the primary means of smuggling narcotics into Brunei. Brunei's borders of coastline, rivers, and dense jungle are porous, and smuggling is common. The majority of this smuggling activity involves alcohol, illegal day-laborers, and food products. Brunei is a party to the 1988 UN Drug Convention, the 1971 UN Convention on Psychotropic Substances, the 1961 UN Single Convention on Narcotic Drugs, as amended by the 1972 Protocol.
Methamphetamine remains the illegal drug of choice in Brunei, and no other drugs were seized in significant quantities in 2001. Through the end of November, 505 drug-related arrests had been made in Brunei. A total of 383 grams of methamphetamine were seized during this period. Methamphetamine use in Brunei seems to be increasingly concentrated among unemployed Malay youth, and drug use among unemployed Brunei youth is increasing.
Brunei has stiff penalties for drug offenses. Possession of 200 grams of methamphetamine, for example, invokes a mandatory death penalty. There is some sentiment for reducing this threshold so that possession of even 50 grams would require the death penalty. Criminals operating in and around Brunei are becoming increasingly sophisticated in their operations. Brunei has recently increased its counternarcotics budget and will be devoting a large share of these resources to enhancing its enforcement manpower and purchasing speedboats for maritime interdiction.
The level of corruption within the GOB is relatively low. Government employees in oil-rich Brunei are generously compensated, and they are not subject to the pressures and temptations of poorer developing countries. In 2001 the NCB and other GOB law enforcement agencies actively participated in regional training opportunities. NCB officers attended a DEA money-laundering seminar in Singapore. The NCB and other Brunei law enforcement personnel regularly attend training at the International Law Enforcement Academy (ILEA) Bangkok. In 2001, some 55 GOB personnel attended training at the ILEA in Bangkok.
Brunei has recently implemented asset forfeiture and seizure legislation. Because seized assets are returned to the general treasury, they do not provide an incentive to the agency that confiscated them. However, the NCB managed to obtain one speedboat through asset forfeiture in 2001 for use in counternarcotics operations.
The Road Ahead. The United States will continue to encourage Brunei to maintain vigilance on narcotics abuse and traffic, and it will endeavor to assist Brunei with training in both enforcement and demand reduction and drug treatment.
The Government of Brunei has drafted anti-money laundering legislation. In 2001, Brunei implemented an asset seizure and forfeiture law. Brunei's Narcotics Control Board has taken part in courses offered by ILEA in Bangkok, and has also attended a money laundering seminar hosted by DEA in Singapore.
In 2001, Brunei actuated its plans to become an offshore financial center. 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.
Supervisory authority will be 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 and an observer jurisdiction to the Asia/Pacific Group on Money Laundering.
Brunei should consider separating the marketing and regulatory functions of the Authority to avoid potential conflict of interest cases.