# Timor-Leste - United States Department of State

- Timor-Leste HomeReportsBureau of Democracy, Human Rights, and Labor2023 Country Reports on Human Rights Practices&#8230;Timor-Leste				hide	document.addEventListener("DOMContentLoaded", function(event) {	if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}});																							2023 Country Reports on Human Rights Practices: Timor-Leste																																					Bureau of Democracy, Human Rights, and Labor																																																																																							Download Report																																																							Translations																																																																 In this section										/																							EXECUTIVE SUMMARY																																													EXECUTIVE SUMMARY																															Section 1. Respect for the Integrity of the Person																																																									a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings																																																																											b. Disappearance																																																																											c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment, and Other Related Abuses																																																																			Prison and Detention Center Conditions																																																																																																																		d. Arbitrary Arrest or Detention																																																																			Arrest Procedures and Treatment of Detainees																																																																																																																		e. Denial of Fair Public Trial																																																																			Trial Procedures																																																								Political Prisoners and Detainees																																																																																																																		f. Transnational Repression																																																																											g. Property Seizure and Restitution																																																																											h. Arbitrary or Unlawful Interference with Privacy, Family, Home, or Correspondence																																																																																	Section 2. Respect for Civil Liberties																																																									a. Freedom of Expression, Including for Members of the Press and Other Media																																																																			Internet Freedom																																																																																																																		b. Freedoms of Peaceful Assembly and Association																																																																											c. Freedom of Religion																																																																											d. Freedom of Movement and the Right to Leave the Country																																																																											e. Protection of Refugees																																																																																	Section 3. Freedom to Participate in the Political Process																																																									Elections and Political Participation																																																																																	Section 4. Corruption in Government																															Section 5. Governmental Posture Towards International and Nongovernmental Monitoring and Investigation of Alleged Abuses of Human Rights																															Section 6. Discrimination and Societal Abuses																																																									Women																																																																											Systemic Racial or Ethnic Violence and Discrimination																																																																											Children																																																																											Antisemitism																																																																											Trafficking in Persons																																																																											Acts of Violence, Criminalization, and Other Abuses Based on Sexual Orientation, Gender Identity or Expression, or Sex Characteristics																																																																											Persons with Disabilities																																																																																	Section 7. Worker Rights																																																									a. Freedom of Association and the Right to Collective Bargaining																																																																											b. Prohibition of Forced or Compulsory Labor																																																																											c. Prohibition of Child Labor and Minimum Age for Employment																																																																											d. Discrimination (see section 6)																																																																											e. Acceptable Conditions of Work																																																																																																							EXECUTIVE SUMMARY				There were no significant changes in the human rights situation in Timor-Leste during the year.Significant human rights issues included credible reports of: serious government corruption; extensive gender-based violence; violence against persons with disabilities; and the worst forms of child labor.The government took steps to identify and prosecute members and officials of the security services who may have committed human rights abuses; however, public perceptions of impunity persisted.																														Section 1.													 Respect for the Integrity of the Person												    																																																a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings										Unlike previous years, there were no reports that the government or its agents committed arbitrary or unlawful killings, including extrajudicial killings.																																				b. Disappearance										There were no reports of disappearances by or on behalf of government authorities.																																				c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment, and Other Related Abuses										The law prohibited such practices and limited the situations in which police officers could resort to physical force and the use of firearms. There were reports of the use of excessive force by security forces. Most complaints involved mistreatment or use of excessive force during incident response or arrest. Abusive conduct by off-duty police officers was also a problem.In several incidents, police officers were accused of using excessive force resulting in physical injury to the victims, including a shooting during a rock-throwing incident and an assault by an off-duty officer. In another event, a soldier allegedly shot a child during a birthday party. No one was killed in these incidents; as of November authorities were investigating them.Citizens reported obstacles to reporting complaints about police behavior, including repeated requests to return later or to submit their complaints in writing. There was a widespread belief that members of the security forces enjoyed substantial impunity for illegal or abusive actions and that reporting abuse would lead to retaliation rather than positive change. Social media users shared photographs of injuries from alleged encounters with police. Prolonged investigations and delays in bringing cases to trial also contributed to the perception of impunity.																Prison and Detention Center Conditions						Prison and detention center conditions generally did not meet international standards.Abusive Physical Conditions: Becora Prison in Dili, the country’s largest, was grossly overcrowded. It had an estimated capacity of 290 inmates, but in October held 455 convicts and pretrial detainees.While authorities provided water in prisons, it was not always available in detention centers, and Gleno Prison experienced seasonal water shortages.Medical care was inadequate. Prisoners who tested positive for tuberculosis shared cells with tuberculosis-negative prisoners. The Ombudsman’s Office for Human Rights and Justice (PDHJ) assessed ventilation and lighting as adequate in prisons but not in police detention centers.Administration: Prisoners and detainees could submit complaints to judicial authorities without censorship and request investigation of credible allegations of problematic conditions. The PDHJ oversaw prison conditions and prisoner welfare. It monitored inmates and reported the government was generally responsive to recommendations. Some human rights monitoring organizations questioned how widely known the complaint mechanism was and whether prisoners felt empowered to utilize it.Independent Monitoring: The government permitted prison visits by the PDHJ, foreign governments, international organizations, local nongovernmental organizations (NGOs), and independent human rights observers.																										d. Arbitrary Arrest or Detention										The law prohibited arbitrary arrest and detention and provided for the right of any person to challenge the lawfulness of their arrest or detention in court. The government generally observed these prohibitions.																Arrest Procedures and Treatment of Detainees						The law required judicial warrants prior to arrests or searches, except in exceptional circumstances or in cases where a criminal was caught in the act of committing an offense.The law required a judicial hearing within 72 hours of arrest. During these hearings, the judge could determine whether the suspect should be released because conditions for pretrial detention had not been met, or released conditionally (usually after posting some form of collateralized bail or on condition that the suspect report regularly to police), or whether the case should be dismissed due to lack of evidence.Time in pretrial detention could be deducted from a final sentence, but there was no remedy to compensate for pretrial detention in cases that did not result in conviction.The law provided for access to legal representation at all stages of the proceedings, and provisions existed for providing public defenders for all defendants at no cost.Pretrial Detention: In many cases the length of pretrial detention equaled or exceeded the length of the sentence upon conviction. Administrative failings involving the judge, prosecution, or defense led to prolonged delays in trials. Pretrial detainees composed approximately 20 percent of the total prison population.																										e. Denial of Fair Public Trial										The law provided that judges should perform their duties “independently and impartially without improper influence” and required public prosecutors to discharge their duties impartially. Many legal-sector observers expressed concern about the independence of some judicial organs in politically sensitive cases, a severe shortage of qualified personnel, and the complex legal regime influenced by legacies of Portuguese, Indonesian, and UN administration, and various other international norms. Additionally, all laws and many trial proceedings and court documents were in Portuguese, an official language only spoken by approximately 10 percent of the population. Nonetheless, observers noted that citizens generally enjoyed a fair, although not always expeditious, trial and that the judiciary was largely independent.																Trial Procedures						The law provided for the right to a fair, timely, and public trial, and an independent judiciary generally enforced this right, except for timeliness.Observers claimed that in many cases judges did not follow the law that provided protections for witnesses. For “semipublic” crimes, in which the process did not begin unless a victim filed a complaint, some citizens utilized traditional (customary) systems of justice that did not necessarily follow due-process standards or provide witness protection but provided convenient and speedy reconciliation proceedings with which the population was comfortable.The Public Defender’s Office was too small to meet national needs. Several defendants who were assigned public defenders reported they never saw their lawyers. Some justice-sector NGOs noted that public defenders were confused about their duties to the client versus the state and that few viewed their role as client advocates. Public defenders did not have access to transportation to visit clients in detention, so at times they met their clients for the first time in court.						Political Prisoners and Detainees						There were no reports of political prisoners or detainees.																										f. Transnational Repression										Not applicable.																																				g. Property Seizure and Restitution										Not applicable.																																				h. Arbitrary or Unlawful Interference with Privacy, Family, Home, or Correspondence										The law prohibited arbitrary interference with privacy, family, home, or correspondence, and the government generally respected this law.																																					Section 2.													 Respect for Civil Liberties												    																																																a. Freedom of Expression, Including for Members of the Press and Other Media										The constitution provided for freedom of expression, including for members of the press and other media, and the government generally respected this right. An independent press and a functioning democratic political system promoted freedom of expression, including for media members.Censorship or Content Restrictions for Members of the Press and Other Media, Including Online Media: Some journalists self-censored on issues involving leaders of the country’s independence struggle or the Catholic church due to political or public pressure.																Internet Freedom						The government did not restrict or disrupt access to the internet or censor online content.																										b. Freedoms of Peaceful Assembly and Association										The constitution provided for the freedoms of peaceful assembly and association, and the government generally respected these rights.																																				c. Freedom of Religion										See the Department of State’s International Religious Freedom Report at  https://www.state.gov/religiousfreedomreport/.																																				d. Freedom of Movement and the Right to Leave the Country										The law provided for freedom of internal movement, foreign travel, emigration, and repatriation, and the government generally respected these rights.																																				e. Protection of Refugees										The government cooperated with the Office of the UN High Commissioner for Refugees and other humanitarian organizations on issues related to the provision of protection and assistance to refugees, returning refugees, asylum seekers, and other persons of concern.Access to Asylum: The law provided for granting asylum or refugee status; however, the system did not align with international standards. There were concerns that regulations governing asylum and refugee status could preclude genuine refugees from proving their eligibility for such status. For example, persons who wished to apply for asylum had only 72 hours to do so after entering the country. Foreign nationals already present in the country had only 72 hours to initiate the process after the situation in their home country became too dangerous for a safe return.																																					Section 3.													 Freedom to Participate in the Political Process												    																						The constitution and law provided citizens the ability to choose their government in free and fair periodic elections held by secret ballot and based on universal and equal suffrage.																										Elections and Political Participation										Abuses or Irregularities in Recent Elections: Parliamentary elections were held in May and international observers assessed those as fair and free of abuses and irregularities.Political Parties and Political Participation: To register, new political parties had to obtain 20,000 signatures, including at least 1,000 signatures from each of the 14 municipalities.Participation of Women and Members of Marginalized or Vulnerable Groups: No laws limited participation of women or members of historically marginalized or vulnerable groups in the political process, and they did participate. Electoral laws required that at least one-third of candidates on party lists be women. Traditional attitudes towards gender roles, limited political networks among women, high rates of domestic violence, extensive child-care responsibilities, and other barriers constrained greater participation of women at the local and national levels.																																					Section 4.													 Corruption in Government												    																						The penal code provided criminal penalties for corruption by officials. The government faced many problems in implementing the law, and the perception that officials engaged in corrupt practices with impunity was widespread. The anti-corruption commission (CAC) was charged with leading national anti-corruption activities and had the authority to refer cases for prosecution but was vulnerable to political pressure.Corruption: In August the Court of Appeals announced the corruption case against former Minister of Parliamentary Affairs and Social Communications Francisco Jeronimo remained under investigation. In October 2022, the CAC executed search warrants on the offices and residence of Jeronimo for allegedly awarding a contract to a company owned by his personal secretary to advance a China-backed modernization of the state broadcast company.In January CAC notified former Minister of Agriculture and Fishery Pedro dos Reis of an investigation into an allegation of corruption within his ministry. The final investigation report was submitted to office of the prosecutor general in March; no information on further action was available as of November.																											Section 5.													 Governmental Posture Towards International and Nongovernmental Monitoring and Investigation of Alleged Abuses of Human Rights												    																						A wide variety of domestic and international human rights groups generally operated without government restriction, investigating and publishing their findings on human rights cases. Government officials usually cooperated with these organizations, although the government did not always respond to their recommendations.Government Human Rights Bodies: By law the independent PDHJ was responsible for the promotion of human rights and good governance and had its own budget and dedicated staff. It had the power to investigate and monitor human rights abuses and violations of governance standards as well as to make recommendations, including for prosecution, to relevant authorities. There were no reports of significant government interference in its work. The PDHJ, in cooperation with the UN Human Rights Adviser’s Unit, provided human rights training to the national police and the military.																											Section 6.													 Discrimination and Societal Abuses												    																																																Women										Rape and Domestic Violence: Rape of a person, including marital rape, was a crime punishable by up to 20 years in prison. The law broadly covered all forms of domestic violence. Penalties for “mistreatment of a spouse” included two to six years’ imprisonment; however, prosecutors frequently charged suspects in domestic violence cases with “simple offenses against physical integrity,” which carried a sentence of up to three years in prison, even when the use of deadly weapons was a factor.The government did not enforce laws on rape and domestic violence effectively. Failures to investigate or prosecute cases of alleged rape and sexual abuse were common. The national police’s vulnerable persons units were generally responsible for handling domestic violence and sexual crimes but did not have enough staff to provide a significant presence in all areas.According to the Office of the Prosecutor General, domestic violence offenses were the second-most charged crimes in the criminal justice system, after simple assault. Judicial observers noted judges were lenient in sentencing in domestic violence cases. Several NGOs criticized the failure to issue protection orders and overreliance on suspended sentences, even in cases involving significant bodily harm. Police, prosecutors, and judges routinely ignored many parts of the law that protect survivors.Gender-based violence remained a serious concern. The Ministry of Social Solidarity and Inclusion was charged with assisting survivors of domestic violence but had difficulty responding to all cases. To deal with this problem, the ministry worked closely with local NGOs and service providers to supplement its help. Local NGOs operated shelters; however, demand for these services exceeded capacity. Local and international NGOs collaborated with the government to educate the public and train police and the military about combatting gender-based violence.Other Forms of Gender-based Violence or Harassment: The labor code prohibited sexual harassment in the workplace. The government did not enforce the law effectively. No complaints were filed, but workplace and public harassment reportedly was widespread. The Trade Union Confederation promoted the prevention of violence against and sexual harassment of women and girls in the workplace.Discrimination: The constitution stated, “Women and men shall have the same rights and duties in all areas of family life and political, economic, social, cultural life,” and prohibited discrimination based on gender. The government did not enforce the law effectively. Some customary practices discriminated against women, including inheritance systems that tended to exclude women from land ownership.Employment discrimination against women, including in hiring, reportedly was common and often went unaddressed. Women were disadvantaged in pursuing job opportunities due to discrimination, gender stereotypes, and an overall lower level of qualifications or education. Some reported that pregnant women did not receive maternity leave and other protections guaranteed by the labor code. The unemployment rate for women was double the rate for men.Some communities continued to practice the payment of a bride price as part of barlake (marriage agreements); this was linked to domestic violence and to the inability to leave an abusive relationship. Some communities also continued the practice of forcing a widow either to marry one of her husband’s family members or, if she and her husband did not have children together, to leave her husband’s home.Reproductive Rights: There were no reports of coerced abortion or involuntary sterilization on the part of government authorities. Cultural and religious considerations sometimes limited access to sexual and reproductive health services. Some unmarried girls and women younger than age 20, for example, were denied reproductive health services due to service provider religious beliefs. In some health facilities, service providers occasionally contravened government policy by requiring a husband’s permission before providing reproductive health services. Lack of sanitation facilities at some schools led some girls to drop out upon reaching the age of menstruation.The government provided access to sexual and reproductive health services for survivors of sexual violence; such services did not include emergency contraception nor postexposure prophylaxis.In the World Health Organization’s World Health Statistics Report 2023, the maternal mortality ratio was estimated at 117 deaths per 100,000 live births. Access to maternal health services was a problem in rural areas. Limited access to professional prenatal care, support during childbirth, and postpartum care were major factors contributing to high maternal mortality.																																				Systemic Racial or Ethnic Violence and Discrimination										The constitution stated that “no one shall be discriminated against on grounds of color, race, ethnic origin, (or) language.” The penal code established aggravating factors in determining penalties, including crimes motivated for racist or other discriminatory reasons, including due to ethnicity or nationality. The code also made racial discrimination a criminal act. Members of groups organized to incite or encourage discrimination based on race faced imprisonment of between four and 12 years. Those who through written or other social communication means sought to incite racial discrimination or encourage or provoke violence against a person or group of persons based on race or ethnic origin could be punished with imprisonment from two to eight years. The government generally enforced these laws, although some Muslim leaders reported discrimination against hiring Muslims for civil service positions.																																				Children										Birth Registration: Birth registration rates were high, with no discernible difference in the rates of registration for girls and boys. While access to services such as schooling did not depend on birth registration, it was necessary to acquire a passport.Education: The constitution stipulated that primary education was compulsory and free according to the state’s ability. Public schools were tuition free, but students paid for supplies and uniforms. According to 2021 government statistics, the net enrollment rate for primary education was 87.2 percent, while the net enrollment rate for secondary education was 58.8 percent. Enrollment was substantially lower in rural than in urban areas. While initial attendance rates for boys and girls were similar, girls often did not attend school while menstruating, due to inadequate sanitation facilities, or were forced to leave school if they became pregnant. Girls also faced difficulty in obtaining school documents or transferring schools. Overall, women and girls had lower rates of education than men and boys.Child Abuse: The law prohibited child abuse; however, abuse in many forms was common. Sexual abuse and assault of children remained a serious concern. Despite widespread reports of child abuse, few cases were prosecuted. Observers criticized the courts for handing down shorter sentences than prescribed by law in numerous cases of child sexual abuse. Incest between men and children in their immediate and extended family was a serious problem. Victims of incest faced a range of difficulties, such as limited information on the formal justice system, limited protection for victims, threats and coercion from defendants, and social stigmatization from family and community.While the Ministry of Education had a zero-tolerance policy for corporal punishment, there was no law on the issue, and reports indicated the practice was common.Child, Early, and Forced Marriage: No marriage could be registered until the younger spouse was at least age 16. Cultural, religious, and civil marriages sometimes were concluded in which one or both spouses were younger than 16. Cultural pressure to marry, especially if a girl or woman became pregnant, was strong. Underage couples were often considered as de facto married once they had children. Forced marriage rarely occurred, although reports indicated social pressure sometimes encouraged victims of rape to marry their attacker or forced persons to enter an arranged marriage when a bride price was paid. There was no recent, reliable data on the frequency of underage marriage.Sexual Exploitation of Children: The age of consent was 14. The penal code, however, made sexual conduct by an adult with anyone younger than 17 a crime if the adult took “advantage of the inexperience” of the younger person, and it increased penalties when such conduct involved victims younger than 14. Some commercial sexual exploitation of children occurred. The penal code made both child commercial sex and child pornography crimes. It defined a “child” for purposes of those provisions as a “minor less than 18 years of age.” The penal code also criminalized abduction of a child.																																				Antisemitism										There was no indigenous Jewish population, and there were no reports of antisemitic acts.																																				Trafficking in Persons										See the Department of State’s Trafficking in Persons Report at  https://www.state.gov/trafficking-in-persons-report/.																																				Acts of Violence, Criminalization, and Other Abuses Based on Sexual Orientation, Gender Identity or Expression, or Sex Characteristics										Criminalization: The constitution and law were silent on consensual same-sex sexual conduct.Violence and Harassment: While physical abuse in public or by public authorities was uncommon, lesbian, gay, bisexual, transgender, queer, and intersex (LGBTQI+) persons were often verbally abused in public. The penal code established discrimination due to sex or sexual orientation as aggravating factors in determining criminal penalties. Observers believed family members used rape, physical and psychological abuse, ostracism, discrimination, and marginalization against LGBTQI+ individuals.Discrimination: The constitution protected against discrimination on various grounds but made no mention of sexual orientation. The NGO Coalition on Diversity and Action noted transgender members of the community were particularly vulnerable to harassment and discrimination.Access to education was limited for some LGBTQI+ persons who were expelled by their family or who feared abuse at school. LGBTQI+ individuals were sometimes discriminated against in some public services, including at medical centers. Transgender students were more likely to experience bullying and drop out of school at the secondary level. Civil society organizations asked the government to include LGBTQI+ community issues in its national inclusive-education policy.Availability of Legal Gender Recognition: Legal gender recognition was not available.Involuntary or Coercive Medical or Psychological Practices: While advocates reported that societal and familial pressure on LGBTQI+ persons to give up their identity persisted, there were no reports of so-called conversion therapy being practiced, nor did the government speak out on this issue. There were no reports of so-called gender normalization surgeries on intersex children.Restrictions on Freedom of Expression, Association, or Peaceful Assembly: There were no restrictions on freedom of expression, association, or peaceful assembly related to LGBTQI+ issues. Senior members of the government attended and spoke at the July Pride Parade attended by several thousand individuals.																																				Persons with Disabilities										Persons with disabilities could not access education, employment, health services, public buildings, and transportation on an equal basis with others. Disability activists noted many persons with disabilities faced significant infrastructure challenges to equitable service, including access to voting centers for those with significant mobility challenges.In many municipalities children with disabilities were unable to attend school due to accessibility problems such as the lack of wheelchair access and other infrastructure, according to a national disabilities NGO.Service providers and disability advocates noted domestic violence and sexual assault against persons with disabilities was a major concern. They indicated the police and judiciary were slow to respond to such incidents.																																					Section 7.													 Worker Rights												    																																																a. Freedom of Association and the Right to Collective Bargaining										The law provided for the rights of certain workers to form and join unions of their choosing, to strike, and to bargain collectively. The law prohibited dismissal or discrimination for union activity, and it allowed for financial compensation in lieu of reinstatement. The law prohibited foreign migrant workers from participating in the leadership of trade unions but did not restrict their membership. The law did not apply to workers in family-owned agricultural or small-scale manufacturing businesses serving primarily for subsistence. The law also did not apply to public-sector workers or domestic workers.Workers’ organizations were generally independent and operated without interference from government or employers. Unions could draft their own constitutions and rules and elect their representatives. In part because most workers were employed in the informal sector, the workforce was largely nonunionized. Newly unionized workers generally lacked experience negotiating contracts and engaging in collective bargaining.There were official registration and strike procedures for trade unions and employer organizations. Workers employed by companies or institutions that provided “indispensable social needs” such as pharmacies, hospitals, or telecommunications firms were obliged to ensure the provision of minimal services deemed indispensable to satisfy public needs during a strike. The law allowed the Council of Ministers to suspend a strike if it affected public order. A majority of employees was needed to conduct a strike ballot, and an absolute majority of union members had to support strike action. Strikes were limited to work issues. The law prohibited employer lockouts. The trade union confederation reported no strikes through November.The State Secretariat for Vocational Training and Employment was charged with implementing the labor code and with labor dispute settlement. The secretariat reported the most common labor issues were terminations in which employers did not follow the procedures outlined in law, such as dismissals without cause. The Trade Union Confederation registered 176 complaints of alleged violations of labor rights between January and September. Individual labor disputes, except over termination on grounds of just cause, were submitted to conciliation and mediation before any recourse to courts. Courts were backlogged, and judicial procedures involved significant delays. The trade union confederation noted some companies led by veterans of the country’s independence struggle did not respect labor laws, believing their social, economic, and political status would excuse any violations.The government did not dedicate adequate resources, staff, or training to enforce laws protecting rights such as the right to organize, collectively bargain, or strike. Violations of these laws were punishable by fines and other penalties, and they were less than those for analogous laws involving denial of civil rights. Penalties were rarely applied against violators.																																				b. Prohibition of Forced or Compulsory Labor										See the Department of State’s Trafficking in Persons Report at  http://www.state.gov/trafficking-in-persons-report/.																																				c. Prohibition of Child Labor and Minimum Age for Employment										See the Department of Labor’s Findings on the Worst Forms of Child Labor at  https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings .																																				d. Discrimination (see section 6)																																														e. Acceptable Conditions of Work										Wage and Hour Laws: The legally set minimum monthly wage was above the official national poverty level. Nonpayment of wages was reported.The labor code provided for a standard workweek of 44 hours. Overtime could not exceed 16 hours per week, except in emergencies, which the labor code defined as “force majeure or where such work was indispensable in order to prevent or repair serious damages for the company or for its feasibility.”Occupational Safety and Health: The law set appropriate minimum standards for occupational safety and health (OSH) and the government proactively identified unsafe conditions. The law provided explicitly for the right of pregnant women and new mothers to adjust, without a cut in pay, work responsibilities that might harm their or the child’s health. The law did not provide other workers the right to leave a hazardous workplace without threat of dismissal. Inspectors had the authority to make unannounced inspections and to initiate sanctions and undertook more than 1,900 inspections for the period January to September. The government responded to workers’ OSH complaints. There were no major industrial accidents.Wage, Hour, and OSH Enforcement: The State Secretary for Professional Training and Employment was responsible for enforcing wage, hour, and OSH laws; it did not effectively enforce them and the labor code did not assign specific penalties for violations of these laws. Penalties were sometimes applied, but were less than those for similar crimes, such as fraud and negligence. The number of inspectors was insufficient to enforce compliance. Labor unions criticized inspectors for visiting worksites infrequently and for discussing labor concerns only with managers during inspections.According to a local union, the government lacked the political will and institutional capacity to implement and enforce the labor code fully, and violations of minimum safety and health standards were common, particularly in the construction industry. Alleged violations also included failure to provide maternity benefits.Household domestic workers, a large proportion of the working population, especially of working women, were inadequately protected and particularly vulnerable to exploitative working conditions, with many receiving less than minimum wage for long hours of work.Labor law did not apply to the informal sector (overwhelmingly women), which according to a government survey in 2021 comprised 77 percent of the workforce.																																				    							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Respect for the Integrity of the Person																																							a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings																																																						b. Disappearance																																																						c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment, and Other Related Abuses																																																				Prison and Detention Center Conditions																																																																																				d. Arbitrary Arrest or Detention																																																				Arrest Procedures and Treatment of Detainees																																																																																				e. 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- Secretary Antony J. Blinken at the Anti-Corruption Champions Award Ceremony Antony J. Blinken, Secretary of StateWashington, D.C.Burns AuditoriumASSISTANT SECRETARY ROBINSON:  Good morning, everybody.  Before we get started this morning, I’d like to acknowledge the tragedy in the Seychelles.  Commissioner De Silva, our thoughts are with you and your country, your people, at this time.It’s an honor to welcome this year’s Anti-Corruption Champions Award honorees.  Thank you for joining us here today and from across the globe.  My name is Todd Robinson, the assistant secretary of the Bureau of International Narcotics and Law Enforcement Affairs, or INL as it’s better known.  And let me give you just a little bit of an overview of what we’re going to do this morning.We have, as you see, a high-powered lineup for you today – (laughter) – starting with Secretary Antony Blinken, who has made it his business since day one to place the fight against corruption at the center of our foreign policy.  We also have here from – we will also hear from Under Secretary for Civilian Security, Democracy, and Human Rights Uzra Zeya, a diplomat with three decades of experience around the world, and my boss.  (Laughter.)  And Richard Nephew, our global anti-corruption coordinator, is going to introduce our honorees today.  We will also have an opportunity to hear from one of our inspiring award recipients.As I mentioned, the fight against corruption is front and center in our U.S. foreign policy.  As I’m sure our honorees can attest, this fight is a difficult one, but from Europe to Africa to Central America, we have seen remarkable wins in 2023.In Guatemala, there was an election victory by a presidential candidate, Bernardo Arévalo from the Semilla party, who ran on a platform of weeding out corruption.In Ukraine, INL works closely with anti-corruption investigators and prosecutors, who this year alone have opened cases against over 20 high-level government officials, including the former chief justice of the supreme court.  Since the summer, Ukraine has advanced significant reform measures, including requiring government officials to declare their assets and adding judges to the High Anti-Corruption Court.In Liberia, our embassy’s stalwart support for action against corruption has put compromised officials on the defensive and is fueling the Liberian public’s desire for increased accountability and sanctions.As you’ll see shortly, the tenacious men and women with us here today are responsible for successes like these.  Tenacious, but also – let’s not forget – fearless.  Corruption is silent, secret, and corrosive.  People know it’s out there but it’s difficult to root out.  That has not deterred our honorees, who have joined this fight at great personal and professional risk, but not without recognition.  To today’s honorees, we see what you are doing and we applaud it.With that, I would like to invite Under Secretary Zeya.  (Applause.)UNDER SECRETARY ZEYA:  Thank you to my dear friend, Assistant Secretary Robinson.  Your leadership on this issue set has been indispensable.  Secretary Blinken, Coordinator Nephew, colleagues and friends, I am delighted to be here today to celebrate these courageous honorees.This weekend, we will commemorate the 20-year anniversary of the first and only global anti-corruption instrument, the UN Convention Against Corruption, or UNCAC.  This distinguished group, through their advocacy and actions, embodies the central message of that consequential document:  The betrayal of the public trust will no longer be tolerated.The drafters of UNCAC, which included the United States, understood the corrosive impact of corruption and recognized it as a transnational challenge.  It affects all countries, regardless of the level of development, political system, or history.  Thus, preventing and countering corruption is a shared responsibility among all countries.UNCAC responded to these threats by providing governments with the tools to counter this scourge at the global level.  The convention endures.  Its comprehensive set of standards, measures, and rules are even more relevant today than they were 20 years ago.  What we’ve learned since the UNCAC’s adoption is that while corruption is a cross-cutting global challenge, every country experiences it in different ways, which requires tailored solutions.For example, in Moldova, through the courageous work of President Sandu’s administration, the country is countering Russia’s interference and the actions of other corrupt actors by fortifying its democracy, modernizing its economy, and aligning its institutions with its European neighbors.  I myself had the privilege of visiting Moldova last week, and I was honored to meet with Minister of Justice Veronica Mihailov-Moraru, who is on the front lines of these efforts and is one of the champions that we are celebrating here today.For our part, President Biden has elevated anti-corruption as a core national security interest.  We’re actively implementing the first-ever U.S. Strategy on Countering Corruption that the President issued two years ago.  Now, this strategy has domestic and international components, acknowledging that we must combat corruption here at home as well as prioritize it in our foreign policy.  We’re also committed to working with all of you, the honorees here today and all of those who stand with us across the globe, dedicated to shining a light on corrupt behavior.When Secretary Blinken launched the Anti-Corruption Champions Award in 2021, we not only wanted to celebrate you, but we also want to learn from your invaluable expertise and experience.  The fight against corruption is a collective effort, and thus we must foster critical engagement across public and private institutions and across borders.  This will bolster our policies and advance the unshakable principles of accountability and integrity ingrained in the UNCAC.So thank you all for joining us here today, and congratulations again to our honorees.I now have the immense honor of introducing an admired friend and a phenomenal boss, Secretary of State Antony Blinken.  (Applause.)SECRETARY BLINKEN:  Thank you.  Good morning, everyone.AUDIENCE:  Good morning.SECRETARY BLINKEN:  So this is a day, a moment I’ve been looking forward to.  And we’ll share the reasons why in just a minute.  But first, let me say to Under Secretary Zeya, to Assistant Secretary Robinson, to our Coordinator Nephew:  Thank you not just for today, but for the extraordinary work you’re doing every day, including and notably on taking the fight to corruption.In public service – whether in government or in civil society – I know it can feel at times like the challenges are just too big; the forces arrayed against change too strong, too entrenched to make meaningful progress.One of the things that I love most about this ceremony each year is that every one of our awardees has proved that idea wrong.  There is no force against progress that is actually immovable.  You’ve demonstrated with your work, with your courage, with your commitment that it can be done.  Even in places where impunity is the rule, you’ve shown how determined individuals can tip the balance, make the difference toward justice.Today, we gather not only to honor these extraordinary champions, but to learn from them.  Corrupt officials and their partners are constantly borrowing from each other’s playbooks.  Well, governments, organizations, citizens committed to fighting corruption need to do the same thing, because in so many different ways, in so many different places, each of you has found a particular angle, a particular way of being effective in combatting corruption.  And so the more we’re talking to each other, the more we’re listening and learning from you, the more effective we are going to be.Now, before speaking to the accomplishments of the awardees, let me underscore that no matter who they are or where they work, none of them does this alone – and I know you would be the first to say that.Indeed, one of the reasons that these leaders are so effective is because they inspire others to join them.  So today, we’re honoring not only these 11 champions, but all of their partners.Including their teammates here at the State Department.  Every awardee was nominated by American diplomats around the world, most of whom work side-by-side with all of our champions to advance our shared priorities.Take any goal of our foreign policy, anything that we really care about – expanding economic opportunity, empowering underserved communities, enhancing security, defending human rights – all of them are served by building more accountable institutions, more accountable societies, more transparency.So we have an abiding interest in rooting out corruption – both to improve lives in local communities and to build more prosperous, more secure, more rights-respecting partners for the American people.As we were looking at the awardees and learning from their stories, I think what’s powerful is you can really draw lessons from each of their work.  And I’ve seen, as we’ve been talking about this together, maybe five things that really jump out.  So let me share those with you in talking about the awardees.First, a key part of combatting corruption is working to reform corrupt institutions from within wherever possible.  That’s a very powerful thing.You heard reference to Veronica Mihailov-Moraru and what she’s done in the Republic of Moldova.  Having worked as a public defender, she knew firsthand how broken her country’s justice system was, but that didn’t stop her from working to overhaul the justice ministry when offered the chance to lead it.  That’s change from within.  Veronica designed and implemented a rigorous vetting process to root out corrupt judges, corrupt prosecutors; she helped reform the country’s anticorruption agencies.  She’s made a point of pursuing these reforms out in the open, not a secret, modeling the transparency she’s trying to foster, and that in turn has allowed her to build broad public support for this work.Vladimir Novovic made a similar leap when he left his post as a judge to become Montenegro’s chief prosecutor for organized crime, corruption, war crimes, terrorism, and money laundering.  That’s a portfolio.  He inherited an ineffective and an infiltrated institution, in a country where citizens were disillusioned by graft that they were experiencing every single day in their institutions.  By pursuing investigations of corrupt judges, of national security officials, senior police, Vladimir showed citizens that even the most powerful people are not above the law.  Since he took office, public trust in the corruption prosecutor’s office has doubled.As Liberia’s anti-corruption commissioner, Marc Kollie led a series of investigations that uncovered bribery of powerful politicians in exchange for favors.  Despite being threatened, Marc pursued his work.  He testified in the case, and then went on to lead other groundbreaking investigations, including one in which he froze bank accounts being used by organized crime to launder money.  His efforts demonstrated how a few committed individuals can turn government institutions from sources of corruption into sources of accountability.Second broad lesson that I’m drawing from our awardees:  When they’re informed, when they’re empowered, citizens – citizens – are our most effective anti-corruption allies.So Nikhil Dey has spent more than four decades in India working with and for those harmed by corruption, and those particularly who are harmed most by it: underserved, marginalized populations.  Nikhil has helped communities in Rajasthan demand access to essential services and rights – education, health care, fair wages, better working conditions.  His organization pioneered the practice of public audits, in which local officials have to report to communities how and where they spend the resources, and citizens have a chance themselves to ask probing questions of these officials.  As these public audits spread across India, more citizens started taking the lead in holding officials to account.  And that, at its heart, is how democracy needs to work.After decades of writing about corruption and organized crime for Ecuador’s newspapers, Arturo Torres founded an independent media site to report on these issues.  In a series of articles, Arturo and his team combined rigorous analysis of publicly available information with deep investigations to uncover the corrupt ties of candidates for judges, for mayors, and other important public offices.  In a country of 16 million people, the website’s reporting garnered 18 million views in just a couple of months – 16 million people in the country, 18 million views in a couple of months.  That showed the public hunger for this information and for the incredibly powerful role it can play in informing voters.Third, more than ever, if we’re going to address corruption effectively, we also have to address forces outside our countries that are looking to weaponize corruption for their gain.In the Democratic Republic of Congo, Jean-Claude Mputu has helped lead “Congo is Not for Sale.”  That’s a civil society coalition that uncovers the way mining deals have benefitted foreign companies, governments, and corrupt officials at the expense of the people.  By exposing the bribes that were used to win these contracts and the billions in lost revenue to the state, the investigations led the DRC Government to try to recover funds for the Congolese people, and has resulted in international sanctions against corrupt businesses and corrupt investors.In Timor-Leste, reporting by Francisco Belo Simoes da Costa showed the way a Beijing-based company used bribes to win a contract to digitize the country’s national television broadcast corporation.  Francisco uncovered the way a corrupt official profited by awarding the contract with no competition.  His reporting also showed the way the agreement would have allowed the Chinese Government to disseminate propaganda throughout the Timorese nation.  Francisco’s reporting prevented the tainted deal from going forward, it sparked an investigation by Timor-Leste’s anti-corruption commission, which is ongoing.For advocate Stanislau Ivashekvich, fighting for accountability, for transparency, for space for civil society in Belarus has long meant taking on the country – excuse me, he’s taking on the country working with Belarus’s dictator to try to quash it, and that is Russia.  Stanislau’s organization, the Belarus Investigative Center, has shone a spotlight on the ways that Russia and Belarus collaborate to try to evade sanctions, to enrich oligarchs, to fuel Moscow’s war of aggression against Ukraine.  His organization’s reporting has been critical to closing sanctions loopholes, seizing the illicit assets of Russian officials and oligarchs.Fourth broad lesson:  Every individual that we’re honoring today has made educating, inspiring, and mentoring young people a key part of their work.With Anette Plannells leading civil society campaigns resulting in the first-ever prosecution of high-ranking officials in Panama – even as she was doing that, she also helped build a youth wing of the nation’s anti-corruption movement.  Thanks to her trainings, thanks to her workshops, not only are countless Panamanians more engaged citizens, but scores of young people have now been inspired to pursue careers in advocacy and in elective office.  And so a whole new generation is coming up at the same time thanks to her work that she was engaged in, the work of the of the moment.As the Seychelles anti-corruption commissioner, May De Silva – you already heard reference to her before – has built an unprecedented case against businesses and former officials for international tax evasion.  At the same time, she’s designed and implemented seminars, conferences, workshops, an anti-corruption curriculum – all of this for students in schools and for colleges across the country.  She says her goal is to show how corruption eats away at societies, but also what every citizen can do to fight it.In Kyrgyzstan, Ali Toktakunov leads MediaHub.  This is an independent news outlet that exposes corruption and shows corrupt actors and how they’re using social media to try to hide, to obfuscate their crimes.  A key part of MediaHub’s efforts is building greater digital literacy among young people, something that they’re doing by holding workshops across the country’s universities, so that individuals are better prepared, better equipped to detect and call out online disinformation.Fifth and finally, every one of these champions – every one – has in some fashion been subject to repression, to threats, to persecution for their work.  Several had been forced into exile.  Many are subject to ongoing legal proceedings.  Some had been locked up.  Their families have also been threatened.  One of our awardees said that his small children can no longer play in public playgrounds and parks because of targeted threats.And yet, each and every one of them persists.  They continue to do the work.  As awardee Arturo Torres said, “It’s part of the job.”To all of today’s awardees, your bravery, your commitment to truth, to justice – it humbles us, it inspires us to do more, and it adds even greater urgency to the enduring effort to strengthen protections for advocates, for human rights defenders, for journalists, for educators around the world who are threatened and attacked for the work they’re doing to fight corruption and to better their societies.As you’ve heard from Under Secretary Zeya, Assistant Secretary Robinson, this has been a top priority for President Biden, for this administration, for this department from day one.  We’ll keep working to build effective ways to have the backs of those who are at risk and to hold perpetrators to account.I know that there are folks watching today who are leading hard fights for transparency and good governance in hard places.  And I know there have to be days when you feel disillusioned, when you feel isolated, when you feel fearful.So I hope, if nothing else, you’ll take heart from today, you’ll take heart from the stories of your colleagues around the world who are doing such remarkable work in the ways that you are – doing it a great cost, at great risk, but doing it.And I hope that today’s ceremony reminds us that, again, the actions of determined individuals can make a difference, are making a difference.  They can puncture the seemingly impenetrable walls of impunity.  They can rekindle citizens’ faith in their own capacity to make governments and institutions work for them.Indeed, they and you are often the only way that change effectively happens.To all the anti-corruption champions far beyond this room, please know you have a partner in the United States.With that, it is my honor to give the floor to one of our awardees so deserving who can speak most effectively for all of our awardees, Minister Mihailov-Moraru.Minister, congratulations.  The floor is yours.  (Applause.)JUSTICE MINISTER MIHAILOV-MORARU:  Good morning.  Honorable Secretary Blinken, colleagues and new friends, ladies and gentlemen, I am very honored to be with you here and be among of this group of all about – with all remarkable activists, journalists, and public officials you have brought together from all around the world.  Thank you very much for all the appreciation.  I am not sure I actually deserve this recognition or to be in the company of this inspiring group of people, but I am very grateful for the honor and I will use it as a reminder and motivation when I need it to persist and to press forward against the resistance we encounter every day in fighting corruption in Moldova and around all the world.The Republic of Moldova is currently undergoing broad reform in its justice sector, addressing challenges relating to integrity, accessibility, efficiency, and widespread lack of trust.  Corruption remains, unfortunately, a central obstacle to the formation of trust in government in Moldova.  But one of our main goals in my country is to improve living standards, to change society’s perception of the independence of the judicial system in order to ensure transparency, but also their responsibility, and ultimately to increase trust in the acts of justice.  And this can only be happen by fighting everywhere and with increasing success against corruption.Corruption, of course, is not unique to Moldova.  It is a global problem that affects us all.  Corruption is the abuse of entrusted power for private gains, and it undermines the rule of law, the legitimacy of government, and the trust of citizens.  Corruption is a threat to the realization of the United Nation Sustainable Development Goals, which aim to create a better and more sustainable future for all.But I am sure that corruption is not inevitable.  It can be prevented and combated through effective anti-corruption policies, practices, and a lot of courage.  Anti-corruption efforts vary in scope and strategy and include both preventive and reactive measures – preventive measures to reduce the opportunities for – of corruption actions, but reactive measures – detect, investigate, prosecute, and sanction corruption and return stolen assets.In Moldova, we have committed to implement de-oligarchization measures to eliminate excessive influence of powerful and at times dangerous vested interest in economic, political, and public life.  We have taken action to fortify our agencies charged with responsibility for investigation and prosecution of high corruption act cases.  We have modernized our legislation for combating money laundering and terrorism financing, and also we are in the process to improve our asset recovery mechanism.But this is only the beginning, and we in Moldova cannot do this alone, of course.  None of us can.  So we are committed to increasing our mutual legal cooperation, including on financial investigations, international and organized crime cases, to identify and to recover criminal assets.  But we also need, as do anti-corruption fighters in every country, the commitment and collaboration of all stakeholders, including the international community, the private sector, civil society, journalists, and academia.So I really believe that every effort counts.  Only together we can make a difference and create a more transparent, accountable, and inclusive society for ourselves and for future generations.During IVLP meetings throughout this week, I was inspired by some quotes.  Finding and fighting corruption – your anti-corruption fight is our fight.  And I want to thank to the American people for the inspiration and all the support toward rule of law.Let me please on behalf of all the IVLP group to receive our gratitude to all of you for your attention, and for the honor you bestow, and the kindness, and the continuing support you have shown to all of us.  Thank you very much.  (Applause.)
- Recognizing the 2023 Anti-Corruption Champions   Todd D.  Robinson, Assistant SecretaryBureau of International Narcotics and Law Enforcement AffairsIn a world faced with myriad challenges, including terrorism, health epidemics, and strategic competition to shape the future of the international order, corruption may not always seem to be at the top of the list of threats.   But that is changing, for the U.S. government and partners around the world.  Left unchecked, corruption steals from a country’s citizens and can sell out a country’s future &#8212; giving a foothold to hostile, criminal actors in the process. Corruption keeps unaccountable officials in power, slows the pace of development, facilitates crime, and ensures unequal distribution of resources – which can affect underrepresented and underserved populations disproportionally.  For all these reasons, the Biden-Harris Administration released and is now implementing the first-ever U.S. Strategy on Countering Corruption.   Our strategy recognizes that preventing, uncovering, and combatting corruption takes a mix of courage, intelligence, and doggedness by many stakeholders, and each year the Department seeks out examples to highlight.  And each year, we find many examples of individuals who are committed to pushing back on corruption.  Recently, Department leadership, including Secretary Blinken, gathered to recognize 11 exemplary corruption fighters. They include reporters, government practitioners, and civil society activists.   We hope you will join us in celebrating our 11 State Department International Anti-Corruption Champions for 2023, and in recognizing all those who fight for accountability, the rule of law, and press freedom.   More information on each of our 2023 honorees can be found below. Moldovan Justice Minister Veronica Mihailov-Moraru advanced countless transparency initiatives as part of a broader effort to cleanse Moldova’s judiciary and prosecution services of corrupt actors.  She now leads the ministry she helped reform. For the past 35 years, activist Nikhil Dey has championed policy reforms to empower workers in India.  He and his counterparts have brought to light official corruption, such as the underpayment of workers on official projects, and built peasant and worker empowerment campaigns targeting corruption in the delivery of government services.    Stanislau Ivaskhevich not only took huge personal risks by engaging in independent media reporting in Belarus, but he and his team also tackled government and business corruption despite intense government pressure – all while building a 50-person organization that serves as a resource to civil society and journalists alike.   Marc N. Kollie fearlessly took on high-level bribery and corruption among Liberia’s powerful political elites as part of his tireless work at the Liberian Financial Intelligence Agency.  His commitment to uncovering corruption cost him his job, exposed him and his family to harassment and threats, and forced him to relocate his family for safety.   In Timor-Leste, Francisco Belo Simoes da Costa exposed a corrupt deal for a Beijing-funded project to digitalize the country’s largest broadcaster.  The deal, involving a company majority-owned by a PRC-based businessperson, ultimately led to charges being filed against a sitting minister.  Jean-Claude Mputu is a leading anti-corruption activist in the Democratic Republic of the Congo and spokesperson for the NGO “The Congo is Not for Sale,” which focuses on extractive industries, and has called attention to billion-dollar losses due to mining sector corruption.    Montenegro has long struggled to stem transnational organized crime.  In an effort to turn the tide and root out corruption within the government, Chief Special Prosecutor Vladimir Novovic has aggressively targeted high-profile individuals, indicting the former president of the Supreme Court, among others. Panamanian civil society leader Annette Planells is a tireless advocate of transparency in government and a leading figure of anti-corruption efforts in her country.  She has experienced retaliatory lawsuits and government intimidation, but wins more than she loses, including joining a successful suit against the former Chief Justice of Panama’s Supreme Court, who was sentenced to five years in prison.    Seychelles anti-corruption commissioner May De Silva has 35 staff but – like many successful public servants – is extending her reach by leveraging external allies, to include FBI agents and investigators from the United Kingdom.  She also shaped the outlook of young people around her country and their civic engagement.  Ecuadoran investigative journalist Arturo Torres published research into drug trafficking, corruption, and exploitation of his country’s natural resources.  A judge sued him for $15M for defamation, a case that Mr. Torres ultimately won.    Journalist “Ali” Totakunov is known as one of the most effective and visible anti-corruption advocates in his native Kyrgyz Republic.  Ali’s reporting initially as a correspondent for Radio Free Europe/Radio Liberty – and his MediaHub team’s independent journalism &#8212; have resulted in legal victories, but they have come at a price including lawsuits, cyber attacks, harassment, and even credible death threats.  This award demonstrates our support for anticorruption leaders who put their lives on the line to spur lasting change.  Secretary of State Antony Blinken was pleased to honor these 11 honorees, who inspire us all to stand up firmly to champion more equitable societies, in a December 7 event at the Department of State. For more from the Bureau of International Narcotics and Law Enforcement Affairs, you can follow us on Twitter @StateINL, Facebook @StateINL, and Instagram @StateINL.   
- One New Assisted School in 2023-2024 Office of Overseas SchoolsThe Office of Overseas Schools is pleased to announce the addition of three new assisted schools to our roster of schools for 2023-2024. This school will serve American families in Gaborone, Botswana.These three schools join an elite group of 193 schools which are non-profit, non-religious, U.S. accredited, independent, private, co-ed establishments at posts across the world. Each post generally has only one assisted school, which are considered the gold standard in American education overseas.&nbsp;Get to Know the New Assisted SchoolGaborone, BotswanaWestwood International SchoolWestwood International School (WIS) was established in May 1988 by the professional, business, and diplomatic community in Gaborone, Botswana. The primary purpose of the group was to provide an English medium education for the international community and other interested families. The founders of the school include: the Embassy of the United States of America, the British High Commission, Barclays Bank (now Absa), Sefalana sa Botswana, and Senn Foods. Initially Westwood School was a primary school with reception through year 8. In December 1994, Westwood Secondary School was registered under the Education Act and the School Council was granted special authority (by the Ministry of Education during July 1995) to operate both the primary and secondary schools jointly.  WIS received its first accreditation in 1998 by the Council of International Schools (CIS) and the New England Association of Schools and Colleges (NEASC).  WIS is a fully authorized and operational International Baccalaureate (IB) World School.  Today, the school is divided into the primary school (reception-year 6) and the secondary school (year 7-13). The school’s commitment to shaping internationally minded, globally aware students.
- Evaluation of TIP Office Victim Identification Data Collection Efforts [PDF] 
- Timor-Leste HomeReportsBureau of Economic and Business Affairs2023 Investment Climate Statements&#8230;Timor-Leste				hide	document.addEventListener("DOMContentLoaded", function(event) {	if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}});																							2023 Investment Climate Statements: Timor-Leste																																																																																												 In this section										/																							EXECUTIVE SUMMARY																																													EXECUTIVE SUMMARY																															1. Openness To, and Restrictions Upon, Foreign Investment																																																									Policies Towards Foreign Direct Investment																																																																											Limits on Foreign Control and Right to Private Ownership and Establishment																																																																											Other Investment Policy Reviews																																																																											Civil Society																																																																											Business Facilitation																																																																											Outward Investment																																																																																	2. Bilateral Investment and Taxation Treaties																															3. Legal Regime																																																									Transparency of the Regulatory System																																																																											International Regulatory Considerations																																																																											Legal System and Judicial Independence																																																																											Laws and Regulations on Foreign Direct Investment																																																																											Competition and Antitrust Laws																																																																											Expropriation and Compensation																																																																											Dispute Settlement																																																																			ICSID Convention and New York Convention																																																								Investor-State Dispute Settlement																																																								International Commercial Arbitration and Foreign Courts																																																																																																																		Bankruptcy Regulations																																																																																	4. Industrial Policies																																																									Investment Incentives																																																																											Foreign Trade Zones/Free Ports/Trade Facilitation																																																																											Performance and Data Localization Requirements																																																																																	5. Protection of Property Rights																																																									Real Property																																																																											Intellectual Property Rights																																																																																	6. Financial Sector																																																									Capital Markets and Portfolio Investment																																																																											Money and Banking System																																																																											Foreign Exchange and Remittances																																																																			Foreign Exchange																																																								Remittance Policies																																																																																																																		Sovereign Wealth Funds																																																																																	7. State-Owned Enterprises																																																									Privatization Program																																																																																	8. Responsible Business Conduct																																																									Additional Resources																																																																											Climate Issues																																																																																	9. Corruption																																																									Resources to Report Corruption																																																																																	10. Political and Security Environment																															11. Labor Policies and Practices																															12. U.S. International Development Finance Corporation (DFC), and Other Investment Insurance or Development Finance Programs																															13. Foreign Direct Investment Statistics																															14. Contact for More Information																																																					EXECUTIVE SUMMARY				The Government of Timor-Leste has welcomed foreign-investment and business-development opportunities since gaining independence in 2002. In practice the investment climate continues to be hampered by inadequate regulatory mechanisms, corruption, insufficient personnel capacity, and deficient infrastructure. The government is working to address these issues but limited human capacity and a time-consuming bureaucratic/legislative system has made progress on reform slow. Initially plagued by conflict and turmoil after independence, Timor-Leste has emerged as a peaceful and stable democracy. Peaceful changes of government and freely contested elections, including a 2022 presidential election that drew 16 candidates, demonstrated an active political climate with competing views for how to best develop an economy largely dependent on public-sector spending for growth. Timor-Leste’s desire to join the Association of Southeast Asian Nations (ASEAN) and the World Trade Organization (WTO) provides incentive to implement fiscal and economic reforms to meet regional and international norms.After rebounding in 2021 to grow 2.9%, Timor-Leste’s economy continued to recover in 2022, growing by 3.0%. Nevertheless, per capita GDP remains below pre-pandemic levels. Timor-Leste’s private sector is weak and primarily dependent on government contracts, and the government’sTable 1: Key Metrics and RankingsMeasure Year Index/Rank Website AddressTI Corruption Perceptions Index 2022 77 out 180  http://www.transparency.org/research/cpi/overview  Global Innovation Index 2022  N/A https://www.globalinnovationindex.org/analysis-indicator  U.S. FDI in partner country ($M USD, historical stock positions) 2021 $0 https://apps.bea.gov/international/factsheet World Bank GNI per capita 2021 $1,140 http://data.worldbank.org/indicator/NY.GNP.PCAP.CD  &nbsp;																																					1. Openness To, and Restrictions Upon, Foreign Investment						    																																																Policies Towards Foreign Direct Investment										Timor-Leste welcomes and strives to attract Foreign Direct Investment (FDI). The government has made considerable effort to establish effective legislative, executive, and judicial institutions, draft laws and regulations, and build personnel capacity. In 2011, parliament unanimously approved the government’s National Strategic Development Plan. The plan directs petroleum revenues to support non-petroleum economic development and help the country move to become a middle-income country by 2030. Despite its openness to FDI and efforts to improve the enabling environment, Timor-Leste’s legal, regulatory, and human capacity remain weak and continue to present challenges for investors.TradeInvest Timor-Leste, I.P. is Timor-Leste’s investment and export promotion agency. The organization’s goal is to facilitate and support potential investors in the country and assist foreign companies in identifying projects among the limited business opportunities emerging in Timor-Leste. TradeInvest is a one-stop-shop that provides services such as licensing, taxes, investment opportunities, permits, tariffs, and educating importers on correct procedures and policies. TradeInvest also provides post-investment aftercare services. The agency’s official website is  www.tradeinvest.tl .The government has no regular structures or activities intended to maintain engagement with investors.There are no laws or practices in the country that U.S. investors allege discriminate against foreign investors by prohibiting, limiting, or conditioning foreign investment in a sector of the economy. However, under the constitution, only citizens may own land. Timor-Leste enacted laws in 2017 and 2018 to facilitate and protect foreign private investment by adhering to international agreements and reducing bureaucratic hurdles. Private Investment Law No. 15/2017 states that foreigners can be granted the right to private property for investment and reinvestment projects subject to the limits set out in the Constitution and in legislation on land and commercial companies.The government views building international ties as part of its effort to increase foreign direct investment opportunities. In 2022 ASEAN member states granted Timor-Leste observer status and agreed in principle to approve its application for ASEAN member ship. Timor-Leste has been active in the Community of Portuguese Speaking Countries and served as President from 2014-2016. (A Timorese citizen has served as Executive Secretary of the Community of Portuguese Speaking Countries since July 2021.) Timor-Leste is also pursuing WTO accession, and also pursuing trilateral economic cooperation opportunities with Indonesia and Australia to boost cross-country investment.The government’s Strategic Development Plan highlights key investment areas to include oil and gas, forestry and livestock, fisheries, tourism, energy, infrastructure, civil construction, coffee, spices, and transportation.The government, through its autonomous agency, the National Petroleum and Minerals Authority (ANPM), contracts with foreign firms to explore and develop offshore oil and gas deposits. Pre-qualification for Timor-Leste’s second licensing round of 11 onshore and 7 offshore blocks closed on January 14, 2022. Thirteen companies submitted bid documents. Bid results were announced April 22, 2022, with five blocks awarded. ANPM has also hosted annual Oil, Gas, and Energy Summits for four years to attract international investors to the oil and gas industry in Timor-Leste, collectively drawing virtual and in-person attendance from over 350 participants from nearly 225 companies. The 2022 summit was held in Dili in June.The government deposits oil and gas revenues into the Petroleum Fund, a sovereign wealth fund. Investment income represents the majority of fund income with revenues from oil and gas currently a relatively small share of income. Strong recovery of global oil prices in 2021, however, reaching historic highs in early 2022 has bolstered revenue from depleting production. The fund value has experienced considerable fluctuation as the COVID-19 pandemic impacted global financial markets. Government expenditures, including efforts to combat COVID-19, rely heavily on the fund. Business and individual tax collections comprise less than 10% of GOTL operating revenues.Government spending, coffee exports, subsistence agriculture, remittances from workers abroad, and small-scale retail activities are the other sources of employment and economic drivers. On March 21, 2023, the Government of Timor-Leste, through the National Petroleum and Minerals Authority (ANPM), launched its first licensing round for mineral exploration, offering a total of 49 concession areas for investment. No mineral extraction currently takes place in the country.																																				Limits on Foreign Control and Right to Private Ownership and Establishment										By law, foreign investors may invest in any sector other than postal services, public communications, transportation, protected natural areas, funeral services, and weapons production and distribution, as these are specifically reserved for the state. Investors are also prohibited from investing in sectors otherwise restricted by law. In areas where foreign investment is permitted there are no limits on the level of foreign ownership or control. There have been no changes to the legal regime in the past year. However, in practice, foreign companies have significant holdings in reserved sectors. For example, Brazilian, Indonesian, Vietnamese, and Chinese investors control large shares of the country’s three telecommunications providers.Section 54 of Timor-Leste’s constitution grants the right of land ownership exclusively to Timorese nationals, either individuals or corporate entities; however, foreigners may conclude long-term (up to 50-year) leases. Investors who wish to lease property must often sort through competing claims from the Portuguese colonial administration, the Indonesian occupation era, and the post-independence period. Resolution may be delayed for years.TradeInvest reviews foreign investment applications which are then presented to the Private Investment Commission for further study and evaluation. The Executive Director of TradeInvest chairs the Private Investment Commission, which is composed of directors general or equivalent from the relevant government ministries in the areas of taxation, customs, land and properties, economic activities of licensing, professional training, labor, immigration, building and housing, territorial planning, and the environment. Other ad-hoc members may also be called upon to be present during the meeting. Prospective investments are reviewed for their economic cost and benefits as well as for the capacity of the investor.The Private Investment Commission evaluates applications for foreign investment permits, verifying the following:Compliance of the application with requirements established in the National Development Plan, in the Procedural Regulation for Foreign Investment and other applicable legislation.Suitability, capacity, experience, and availability of financial resources necessary for implementation and operation of the proposed investment enterprise.Capacity, experience, and business or technical characteristics of the promoter or its managers in order to guarantee implementation and operation of the enterprise.Positive operational balance of the business, according to the project proposal.Environmental, infrastructural, and social implications which could condition the viability of the enterprise or that can result from its implementation.Guaranteeing availability of necessary land for installation and functioning of the investment enterprise.Ensuring consistency of the expected new jobs to be created in the short and medium term.Establishing interconnection with other economic sectors.The documents required for investments include:TradeInvest application formDescriptive project summary (project briefs, technical plans)Identification of promoters, professional CV/Firm Corporate CapabilityBank credentials (bank statement, bank reference)Business planDocuments of Land OwnershipLot locationBudget for construction/remodelingEnvironmental Impact Assessment (Environmental Licensing)Criminal Records (Original/Certified copy)TradeInvest can issue a certificate of investment for projects approved by the Private Investment Commission valued at less than $20 million. Investments of more than $20 million or that require more than 5 hectares of state land for tourism or 100 hectares of state land for agriculture, livestock, or forestry require approval from the Council of Ministers. Investors can also request a Special Investment Agreement, through TradeInvest, prior to submitting the project to the Council of Ministers for approval. The TradeInvest website reports that application fees are $500 for national investors and $2,000 for international investors. TradeInvest should issue investment decisions within 30 days. Regulatory actions needing approval from the Council of Ministers may require additional time to resolve.After nearly a decade, the government granted a foreign company the rights to invest an initial $100 million to develop 16 hectares into an upscale resort just west of the capital in March 2020. In January 2022, the Council of Ministers approved a Special Investment Agreement (SIA) for the development that had been pending since 2010. Timor Port, a $490 million project developed as the country’s first Public Private Partnership was completed and began operating in September 2022. Another multi-million-dollar large-scale investments in a cement plant in Baucau is yet to open, having been delayed by COVID-19 and opaque government processes.																																				Other Investment Policy Reviews										Timor-Leste has not yet conducted any investment policy reviews through OECD, WTO, or UNCTAD. Timor-Leste was accepted as an observer to the WTO in 2016, and its Working Party for accession to the WTO was established in December 2016 and held meeting in October 2020, July 2021, April 2022, and September 2022. In May of 2022, the Coordinating Minister for Economic Affairs and WTO Accession Chief Negotiator led a large government delegation in bilateral meetings with WTO members, the WTO Secretariat and development partners in Geneva. Timor-Leste’s overall political stability has allowed some businesses to grow; political impasses, during which the country operated without state budgets, however, reduced opportunities for government contracts in 2017, 2018, and 2020. The political impasses affected many areas of the economy, including commerce, public services, and larger public works projects. The government passed its 2021, 2022, and 2023 state budgets on time in December prior to the start of the respective fiscal year (January – December).In March 2020, the government enacted a State of Emergency (SOE) to respond to the COVID-19 pandemic and restricted many “non-essential” commercial enterprises. In November 2021, the government passed amendments to the Health Law that allowed it to implement public health measures previously only possible under an SOE, and the last SOE expired. In August 2020, the government released a plan to promote Timor-Leste’s post-COVID-19 economic recovery, including short-, medium-, and long-term interventions. The plan includes support to the private sector as well as to households and local producers. The food subsidy program (Cesta Básica) introduced with the plan continued to be implemented with the 2023 state budget.Although the government is committed to improving its services in critical sectors, challenges remain &#8211; bureaucratic inefficiency, infrastructure bottlenecks, the absence of real property and information communications technology (ICT) laws and other essential legislation, a lack of commercial courts, uncertain implementation of government procedures, significant deficiencies in human capacity, conflicts of interest, and corruption are some of the most notable challenges.																																				Civil Society										Timor-Leste has not been the subject of investment policy reviews by domestic or third country civil society groups.																																				Business Facilitation										Timor-Leste’s Business Verification and Registration Service office (SERVE) processes business registration and licensing in the country. SERVE was created in 2013 as one-stop-shop to make business registration faster and easier. The agency’s website is  https://serve.gov.tl . Business registration and application processes require an in-person visit to SERVE’s office. Getting a business license takes between one and five days; however, actual timelines may be greater. For companies involved in civil construction, food processing, or pharmaceutical industries, the agency works closely with relevant ministries, particularly the Ministry of Tourism, Commerce, and Industry, to facilitate business licenses, although since 2017 all registration requirements have been centralized with SERVE.Monthly and annual tax declarations can be made online at  https://attl.gov.tl/ .																																				Outward Investment										The government does not promote or incentivize outward investment, nor does it restrict it.																																												2. Bilateral Investment and Taxation Treaties						    																						Timor-Leste and Portugal have signed an Agreement on Mutual Protection and Promotion of Investment. Timor-Leste signed a Bilateral Investment Treaty (BIT) with Germany in 2005 and with Qatar in 2012 but neither is yet in force. Timor-Leste does not have a BIT or a bilateral taxation treaty with the United States. Timor-Leste has a tax treaty with Portugal only.Timor-Leste is not a member of the OECD Inclusive Framework on Base Erosion and Profit Shifting.																																		3. Legal Regime						    																																																Transparency of the Regulatory System										Timor-Leste’s regulatory system is still in formative stages. Existing tax, labor, environment, health and safety, and other laws and policies do not present obvious impediments to investment. Government policies and practices generally are transparent.The Ministry of Finance launched an online Procurement Portal in 2011, intended to increase transparency by providing equal access to information on government tenders and procurement contracts. However, updates are inconsistent and not all tenders appear to be included in the site. Reports say when tenders are posted, it is only for a few days and winners may be pre-selected. The Audit Chamber, under the Court of Appeals, is responsible for reviewing government procurements above $5 million.In 2018 and 2019, the Ministry of Finance launched the ASYCUDA system in APORTIL, the organization managing customs at the international port and International Airport of Nicolao Lobato, as part of the fiscal reform process with the aim of improving efficiency, customer service, and transparency. The government hopes to facilitate trade by implementing a modern and reliable system to track and manage imports and exports. USAID&#8217;s Customs Reform Project helped Timor-Leste’s Customs Authority to streamline processes, improve government-wide integration, and align with laws and international standards. The project also established a National Customs Hotline for reporting illegal activities and an online Customs Trade portal providing the public with trade-related information, improving transparency for import/export procedures. In May 2021, Timor-Leste’s Customs Authority launched a Customs Hotline, allowing anyone to anonymously report by phone or online possible customs infractions. This and similar international programming help the GOTL reduce trade costs by adopting best-practice customs clearance and transit procedures.In addition, SERVE issues no-cost business licenses for what it determines to be low-risk undertakings. High- and medium-risk business licenses may incur application fees. Initial and renewal business license are generally valid for 12 months. SERVE also supports the private sector’s compliance with mandatory social security contribution laws.Parliament and parliamentary committees regularly hold hearings and debates on proposed laws. For certain major legislation, the government holds limited public consultations or solicits public comment. Public health protocols reduced public consultations during the COVID-19 pandemic, but with a gradual lifting of restrictions following expiration of the last state of emergency in November 2021 public consultation activity returned to normal by Q1 2023. There is no legal requirement to publish draft regulations prior to enactment. Relevant functional agencies generally are responsible for formulating regulations, which are then presented by the parent Ministry for consideration and approval by the Council of Ministers.Regulations are adopted and implemented at the national level; there are no sub-national levels of regulation. Most oversight occurs in the capital by relevant ministries, although some agencies have staff at the district level that monitor compliance. Legislation and regulations are published in the national journal (Jornal da República de Timor-Leste,  www.mj.gov.tl/jornal/ ), in full text, to signify entry into force, although applicable information may be tardily printed or difficult to find.Public finances and debt obligations are published and available to the public. Financial reports available through internet-based access are not consistently updated, but they are generally made available upon request.Government encourages businesses to engage in good corporate social responsibility practices, although this effort is only codified in the oil and gas sector. The Petroleum Act of 2005 includes a local content regulation that requires applicants for production sharing contracts to include proposals for environmental protection, health and safety, and training and preferential employment of Timor-Leste nationals.																																				International Regulatory Considerations										Reforms currently underway in Timor-Leste’s fiscal and economic systems aim to bring the country into compliance with ASEAN and WTO standards. The Timor-Leste ASEAN Mobilization Plan (TLAMP) aims to bring all the relevant line ministries into compliance with ASEAN economic best practices.Timor-Leste was accepted as an observer to the WTO in 2016, and its Working Party for accession was established in December 2016. The fourth meeting of the Working Party was held in September 2022. A Timor-Leste government delegation visited Geneva in May 2022 for bilateral meetings with WTO members and the WTO Secretariat and participated in roundtable discussions on the country’s WTO accession.																																				Legal System and Judicial Independence										The Portuguese legal system heavily influences Timor-Leste’s civil law system. Timor-Leste applies Indonesian law, which was in force until August 1999, as a subsidiary source of law for issues not yet addressed in Timorese legislation. The country does not have a written commercial code. The judicial system operates independently of the executive but is evolving and short staffed. Regulations and enforcement actions can be appealed to the court system.The Office of the Prosecutor General continues to accumulate experience and capacity to establish and implement case management and other essential systems. Timor-Leste has courts of first instance and a court of appeal. However, courts operate in only four of the country’s thirteen districts, and customary law governs most cases at the local level. Additional courts outlined in the Constitution and law, such as specialized tax courts, have not yet been established. Waiting times to bring a case before a judge remain long, and cases may be unresolved for years. Conciliation and arbitration judicial reforms to reduce pending caseloads are preliminary. In practice, the system generally prioritizes criminal cases.																																				Laws and Regulations on Foreign Direct Investment										The Timorese legal system is based on a mix of Indonesian laws and regulations, acts passed by the United Nations Transitional Administration, and post-independence Timorese legislation modeled on Portuguese civil law. The country is reviewing its legislation to harmonize the system but has yet to undergo a comprehensive overhaul of the overlapping yet disparate systems. Timor-Leste has two official languages (Tetum and Portuguese) and two working languages (Indonesian and English); all new legislation is enacted in Portuguese and is based on the civil law tradition, though is supposed to be published in Tetum as well.The Private Investment Law (Law No. 15/2017) specifies the conditions and incentives for both domestic and foreign investment and guarantees full equality before the law for international investors. Other major laws affecting incoming foreign investment include the Companies Code of 2004, the Commercial Registration Code, the Taxation Act of 2008, and the Copyright Law of 2022. The Government of Timor-Leste announced the establishment of TradeInvest, a one-stop-shop for investment and export promotion in 2015 ( https://www.tradeinvest.tl/ ). The agency has the responsibility to promote Timorese exports and investment opportunities in the country and to encourage domestic entrepreneurship. There are ongoing fiscal reform efforts designed to align Timorese legislation and regulation with best practices in ASEAN (under the ASEAN Comprehensive Investment Agreement) and under the United Nations Conference on Trade and Development (UNCTAD).																																				Competition and Antitrust Laws										Timor-Leste does not have a competition or anti-trust law.																																				Expropriation and Compensation										Both Article 54 of the Constitution and the Private Investment Law permit the expropriation or requisition of private property in the public interest only if just proper compensation is paid to the investor. The Private Investment Law calls for the equal treatment of foreign and national investors in expropriation cases and prohibits nationalization policies or land policies that deliberately target the property of investors.The government has relocated significant numbers of residents for large development projects in Oecusse and Suai. Two known private investments in Dili have negotiated with the government to remove residents as part of the investment agreement. Residential relocations can often be contentious; a large-scale hospitality development close to the capital is a cautionary example of unregistered tenets establishing domiciles on claimed property of a private investor and demanding compensation from the corporation or government before vacating, and all parties are outwardly refusing to relocate, compensate, or compromise. The government has not used methods that could be considered indirect expropriation. The government has at times been accused of not offering fair market value as compensation for expropriations, or for not following due process for evictions of squatters on government or disputed land.																																				Dispute Settlement																										ICSID Convention and New York Convention						Timor-Leste is a member state to the International Centre for Settlement of Investment Disputes (ICSID Convention). In February 2021, parliament ratified the convention of the Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention). Law No 6/2021, of March 31, 2021, approved the legal framework for voluntary arbitration. The new regime applies to all arbitration proceedings based in Timor-Leste, whether domestic or international, as well as the confirmation and enforcement of arbitral awards rendered in another country, without prejudice to the provisions of international conventions. The Voluntary Arbitration Acts follows the systematic structure and principles of the UNCITRAL Model Law on International Commercial Arbitration of 1985, as amended in 2006, and entered into force the day after its publication.						Investor-State Dispute Settlement						The domestic court system handles civil disputes but is not properly equipped for the demands currently placed upon it. The Timorese justice system suffers from a shortage of qualified judges and attorneys, incomplete and piecemeal national legislation, and insufficient geographical coverage. New legislation is enacted in Portuguese, while many legislators, prosecutors, judges, attorneys, police officers, plaintiffs, and defendants do not speak the language. Legal professionals lack specialized technical expertise to address complicated commercial or tax cases. Local courts recognize foreign arbitral awards against the government. Timor-Leste is not signatory to any treaties or investment agreements that provide for binding arbitration of investment disputes. There is no history of extrajudicial action against investors.The government pursued international arbitration against at least one private company in a tax dispute. There were four cases filed against the company in Singapore in arbitration in 2014. After more than a year of process, both sides signed a negotiated agreement in February 2016 that resolved most of the pending cases.In 2019, an Australian company pursued arbitration against the government for alleged breaches and unlawful rejection of a fuel supply contract. The case went before the Supreme Court of Victoria, Australia, and was resolved in favor of the government in October 2020.In 2018, overseas arbitration led to a $5 million settlement in favor of a private Spanish construction firm for late payment by the GOTL on a road project in 2018. This is the only known example of a private-sector actor receiving compensation for losses determined to be the fault of the GOTL.In 2016, a U.S. company and the government of Timor-Leste settled several significant outstanding disputes regarding tax assessments. The parties were unable to resolve a further dispute regarding a withholding tax but agreed to leave the matter with the Singapore International Arbitration Center and accepted the result. The parties also agreed on a shared understanding of the relevant dispute resolution framework and application of penalties, and an agreement to work together towards consolidating the applicable tax laws.						International Commercial Arbitration and Foreign Courts						The domestic court system is not properly equipped to handle commercial or tax disputes, and most legal professionals lack specialized expertise or training in these types of cases. There is no domestic arbitration body in Timor-Leste. Legal dispute resolution rarely takes place in Timor-Leste and established private sector actors tend to travel to Singapore or Australia for arbitration. Local courts recognize and enforce foreign arbitral awards.There is no formalized mediation system, but private parties in Timor-Leste frequently resolve disputes using attorneys acting as mediators.Many legal reforms are hindered by limited financial resources and human capacity. For instance, the Dean of the University of Timor-Leste (UNTL) Law School expressed interest in developing an arbitration training program for UNTL law students but acknowledged students’ English skills presented a significant hurdle to participation in international arbitration training and competitions.There is limited case history regarding SOEs involved in investment disputes, but courts have ruled against SOEs. There have not been complaints of court bias in favor of SOEs.																										Bankruptcy Regulations										Timor-Leste enacted an insolvency law in 2023. Law number 1/2023, Legislative Authorization on Insolvency and Business Recovery, grants authorization for the government to establish a legal regime for bankruptcy. Implementing legislation remains to be enacted. In the most recent publication (2020), the World Bank ranked the country 168 of 190 in resolving insolvency with a score of zero reflecting no history of recovery.																																												4. Industrial Policies						    																																																Investment Incentives										The Government of Timor-Leste offers investment incentives, including tax credits and import duty exemptions, to both domestic and international investors. There are no investment incentive programs specifically targeting underrepresented investors. An investment might be exempt from income tax, sales tax, and/or service taxes. For most industries, the corporate tax rate is 10%. Domestic investments worth over $50,000, foreign investments of over $1.5 million, and joint foreign and national resident investments where the national resident controls at least 75 percent of shares totaling $750,000 benefit from a five-year exemption from income, sales, and service taxes, and customs duties for goods and equipment used in the construction or management of the investment. The period of exemption is extended to eight years for investments in Rural Zones (outside of the cities of Dili and Baucau) and to ten years for investments in Peripheral Zones (the exclave of Oecusse and the island of Atauro). Even after these periods have expired, investors may deduct from their tax obligations up to 100 percent of the costs of constructing or repairing transportation infrastructure. Government guarantees or joint financing of foreign direct investment is not common practice; however, the government has engaged in a limited number of public-private partnerships, including development of the Timor Port. The government does not currently offer incentives to promote clean energy investments.																																				Foreign Trade Zones/Free Ports/Trade Facilitation										There are no foreign trade zones in Timor-Leste. Law No.3/2014 of 2014 defines and regulates a free trade zone in the Oecusse exclave called the Special Zone for Social Market Economy (ZEESM). The ZEESM prioritized socioeconomic activities to promote the quality of life and well-being of the community, namely:Development of commercial agricultureCreation of an ethical financial centerCreation of a free trade zone (Note: the FTZ has not been established to date.)Increased tourismCreation of a center for international studies and research on climate changeCreation of a center of green researchImplementation and development of industrial activities for export and importOther economic activities that add value to the region, as well as strengthen its international competitiveness.The government approved a decree law in 2016 on the development of Atauro (an island offshore from Dili) as part of ZEEMS. As of April 2023, most of these objectives have yet to be realized.																																				Performance and Data Localization Requirements										Individual investment agreements and government contracts may specify local content requirements. Local content requirements in the oil and gas sector are particularly strict; requirements in other sectors are often not enforced. In the oil and gas sector, to be considered for production sharing contracts, potential partners are required to include provisions for training and preferential employment for Timor-Leste nationals and for acquisition of goods and services from Timor-Leste. Requirements are applied uniformly to domestic and international investors.There are no requirements for foreign IT providers to turn over source code or provide access to encryption.Performance requirements are often established contractually but are not an element of government policy or regulation.																																												5. Protection of Property Rights						    																																																Real Property										Property rights and interests are protected; however, determination of ownership can be difficult and property rights remain an issue of concern for foreign investors and businesses. The legal regime governing land and property ownership in Timor-Leste remains incomplete. A history of displacement, overlapping titles, and lack of legal clarity regarding competing claims on land and properties arising from various occupancies during Portuguese, Indonesian, and post-independence eras make protecting land titles and property rights difficult. While substantial amounts of land are subject to ownership dispute there is no consolidated accounting of the overall share. A comprehensive land law was promulgated in 2017 and national land surveys and registrations have been done. Under the law, claimants must register claims, which will be decided in arbitration. However, issuance of land titles and resolution of disputed title is pending additional government action on additional complementary legislation. Additionally, there are no administrative systems in place to track land transactions following initial titling.Foreign persons may lease but not acquire land in Timor-Leste. Mortgages exist, however there is no legal mechanism for foreign banks to repossess property in cases of default. There are no requirements to occupy or develop property to retain legal ownership.																																				Intellectual Property Rights										Timor-Leste is not listed on USTR’s Special 301 Report or the Notorious Markets List.Section 60 of Timor-Leste’s constitution provides for the protection of literary, scientific, and artistic work. In addition, Article 1223 of the country’s Civil Code stipulates the necessity of specific regulations to protect authors of the property. Also, Article 19 of the Private Investment Law states all investors are entitled to the protection of industrial secrets, copyrights, industrial property rights, distinctive trademark signs, or any other intellectual property rights recognized by law. In December 2022 the government adopted the Copyrights Law No. 14/2022, which is scheduled to take effect in June 2023 after a 120-day period for public dissemination. Enforcement systems are untested. The law guarantees protection for the creation, production, and marketing of literary, scientific, and artistic works, including protection for the rights of the author. The government is finalizing a draft Industrial Property Code, which will contain provisions on trademarks, geographical indications, industrial designs, and patents. The code is expected to be promulgated in 2023.International companies have printed notices in local newspapers to demonstrate claims to their trademarks and patents. However, the dearth of domestic legislation in this area means that it is unclear the extent to which these practices afford any legal protection.The government does not track or report on seizures of counterfeit goods. No official or unofficial data is available regarding the prevalence of counterfeit goods in the economy. Timor-Leste is a member of the World Intellectual Property Organization (WIPO). For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at  http://www.wipo.int/directory/en/ .Timor-Leste makes limited efforts to control the sale of counterfeit goods, and does make seizures, but does not track volumes or make statistics available.For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at  http://www.wipo.int/directory/en/. 																																												6. Financial Sector						    																																																Capital Markets and Portfolio Investment										Timor-Leste does not have a stock market. There is limited access to credit and liquidity to facilitate investment. There are no known restrictions on portfolio investment.																																				Money and Banking System										As of 2019 only 54% of Timorese adults were depositors with commercial banks, and only 4% held bank loans. There are five commercial banks operating in Timor-Leste: ANZ of Australia, Mandiri of Indonesia, BRI of Indonesia, BNU of Portugal, and a subsidized National Commercial Bank of Timor-Leste. The banking system was estimated to hold $734 million in net assets in 2021. All banks in Timor-Leste are subject to prudential measures and regulation by the Central Bank. Since most of the country’s operating banks are branches of foreign banks, the system is relatively resistant to domestic economic shocks. Foreign citizens must have a tax identification number demonstrating residency in Timor-Leste to maintain an individual bank account. According to World Bank data, lending to the private sector totaled approximately $290 million in 2020. According to the Central Bank, the overall non-performing loan rate was 2.4% in 2021.The Central Bank of Timor-Leste is the country’s monetary authority. It supervises the activities of commercial banks, money transfer operators, currency exchange offices, insurance companies, and other deposit-taking corporations, as well as serving as the operational manager of the country’s sovereign wealth Petroleum Fund. The bank also operates as the clearing house for interbank payments and undertakes bank operations for the government and Timor-Leste’s public administration.																																				Foreign Exchange and Remittances																										Foreign Exchange						The U.S. dollar is the official currency of Timor-Leste. There are no official currency controls, although the Central Bank of Timor-Leste imposes reporting requirements for the importation or exportation of cash above $5,000 and requires explicit authorization for sums in excess of $10,000. Investors may request conversion of funds into foreign currency through the banking system to transfer funds abroad to meet financial obligations incurred by the investment such as payment of imports, payment of capital or interest on loans taken abroad, or payment of rights and management services. The foreign banks operating in Timor-Leste may impose reporting requirements for transactions above a certain amount to comply with home-country anti-money laundering regulations, in addition to the requirements stipulated by the Central Bank. American citizens must have a tax identification number that demonstrates residency in Timor-Leste to maintain an individual bank account.						Remittance Policies						The Private Investment Law (No. 15/2017) guarantees the right to freely transfer funds abroad from any investment or reinvestment in Timor-Leste. This applies to:Profit and dividends paid as a result of an investment made;Capital resulting from the sale, liquidation, and extinction of shares in commercial companies which constitute investment, as well as the sale of business assets, which are the property of the investor;Capital resulting from the reduction of the capital stock of a commercial company constituting an investment;Amounts due on the basis of contracts which constitute investment;Benefits payable to amortization or payment of financial interest constituting an investment;Personal income obtained in the discharge of management and administration functions relating to investment participation in economic activities;Income from the transfer of intellectual property rights which constitute investment.Compensation payable as a consequence of government requisition or expropriation of the property of an investor;Payments arising from settlement of investment disputes.The right to freely transfer funds abroad must be exercised in accordance with the applicable Central Bank regulations and is limited only by the application of a general legislation, such as tax legislation.																										Sovereign Wealth Funds										Established in 2005, the Petroleum Fund is Timor-Leste’s sovereign wealth fund. As of April 2023, the value of the fund stood at $16.9 billion. The Minister of Finance is responsible for its overall management and investment strategy. The Central Bank of Timor-Leste is responsible for its operational management, although the Minister of Finance has the authority to select a different operational manager. By law, all petroleum and related revenues must be paid into the Fund, with the balance of the Fund invested in international financial markets for the benefit of present and future generations of Timor-Leste’s citizens. The Fund’s receipts are invested in approximately 40 percent equities and 60 percent bonds, but 2021 changes to the Petroleum Fund Law permit the Fund to invest up to 50 percent in equities. The Petroleum Fund publishes monthly, quarterly, and annual reports online. Laws governing the Fund provide that it must maintain an independent auditor, which shall be an internationally recognized accounting firm. The Petroleum Fund meets the 24 generally accepted principles and practices for sovereign wealth funds, commonly referred to as the “Santiago Principles.” Timor-Leste is a full member of the International Forum of Sovereign Wealth Funds.The Petroleum Fund is the primary source of funding for the government budget, with a ceiling on annual withdrawals set by law at 3 percent of Timor-Leste’s total petroleum wealth (defined as the current Petroleum Fund balance plus the net present value of future petroleum receipts). Recent budgets and supplementals have exceeded the annual ceiling with parliamentary approval. However, budgets are rarely fully executed, regularly returning up to one-third of their value to government coffers.The Petroleum Activities Law no 13/2005, article 22, limits the government to investing 20 percent of the fund in petroleum activities. The government amended the law in 2019 to allow 5% of the Petroleum Fund to be invested in Timor Gas and Petroleum (Timor GAP), the national oil company, while reducing the percentage of the Fund held in stocks from 40% to 35%. Timor GAP must use the investment to exploit known oil and gas fields, which are commercially competitive and will contribute to development and diversification of the national economy. Timor GAP shall pay 4.5% interest on the investment and comply with reporting requirements.																																												7. State-Owned Enterprises						    																						The Timorese government operates a small number of state-owned enterprises (SOEs) across various sectors, including broadcasting, aviation, oil and gas, pharmaceuticals, and telecommunications. Timor-Leste’s SOEs are focused on domestic operations and do not compete internationally. There is no published list of SOEs. Most SOEs operate as monopolies in their respective sectors; those that do not (Timor Telecom, Timor GAP, and RTTL) compete on a commercial basis. SOEs, however, benefit from receiving substantial financial support through subsidies from the government.The Government of Timor-Leste owns 20.6 percent of Timor Telecom -a telecommunications provider- while privately-owned Telecommunicators Públicas de Timor (TPT) owns 54 percent. As of April 2023, the government was in negotiations to buy the TPT shares held by Brazilian telecoms company Oi; the purchase would give the government a 61.7 percent majority share. In 2013, two private foreign companies began telecommunications operations, ending Timor Telecom&#8217;s monopoly of the fixed and mobile network. In exchange for the end of the monopoly, Timor Telecom acquired certain equipment procured by the government and will retain no-cost usage rights of some government-owned infrastructure and equipment until 2062.In mid-2011, the government established Timor GAP, E.P., a 100-percent state-owned petroleum company intended to partner with international firms in exploration and development of Timor-Leste’s petroleum resources and to provide downstream petroleum services. Timor GAP is supervised by the Minister of Petroleum but is governed by an independent Board of Directors. Firms that partner with Timor GAP will receive preferential treatment in tenders for petroleum projects.In November 2008, the Timorese government transformed Timor-Leste’s Public Broadcasting Service, Radio Televisão de Timor-Leste (RTTL), into a state-owned enterprise known as RTTL. The government owns RTTL under the supervision of the State Secretary of Social Communication and governed by an independent Board of Directors. In 2016, the government established an official news agency, TATOLI.In November 2005 (Government Decree No.8/2005), the government established ANATL, E.P., a state-owned company to administer the domestic airports in all aspects, including air navigation.The government created SAMES, E.P. in April 2004 (Government Decree No. 2/2004) &#8211; a public enterprise that imports, stores, and distributes medicines and medical products and equipment. In April 2015, the government converted SAMES, E.P. into SAMES, I.P., an autonomous institution, which operates under the tutelage and supervision of the Ministry of Health.In 2020, the government approved two decree laws to convert the public electricity utility known as the Department of National Electricity to Public Enterprise (EDTL, E.P) into a state-owned enterprise in the hope it will deliver better services to the customer and improve its cost recovery. Timor-Leste loses nearly half of its generated power by inefficient distribution infrastructure and consumer theft, costing the government millions annually.In 2020, the government through Decree Law no. 41/2020 established Bee Timor-Leste Empressa Publica (BTL, E.P.) as a state-owned public water utility company.In June 2022, the government through Decree Law no. 43/2022 established the National Mining Company of Timor-Leste (CMTL), S.A., mandated to undertake mining activities for business and revenue generation purposes.Several autonomous government agencies are active in the economy: The Dili Port Authority (APORTIL), Timor-Leste’s Agency for Information and Communication Technology (TIC Timor), the National Electrical Authority (ANE), and the National Aviation Authority (AACTL) are four such agencies. Other autonomous and self-funded institution includes the National Petroleum and Mineral Authority (ANPM), which regulates the oil and gas sector.Line ministers or the prime minister’s office supervise SOEs, but independent boards of directors administer them. Senior management reports directly to government-appointed boards of directors. Line ministers are responsible for nominating or dismissing the president of the board of directors with approval from the Council of Ministers																										Privatization Program										Timor-Leste does not have a privatization program.																																												8. Responsible Business Conduct						    																						Businesses are generally aware of expectations and standards for responsible business conduct, although regulation of those standards is inconsistent. The government monitors business compliance with labor and environmental regulations, although the capacity to do so is insufficient. Executive compensation is captured through tax reporting, but there are no standards for corporate governance or accounting in place. Timor-Leste is a member of the Extractive Industries Transparency Initiative (EITI) and is rated as making Satisfactory progress across all assessed requirements. Labor violations are infrequently cited or prosecuted.There have been no high-profile business-related instances of corporate impact on human rights. Child labor exists; it mostly occurs in agriculture and the informal economy but could be a concern for certain supply chains. Timor-Leste has laws concerning labor, the environment, and mineral and petroleum exploitation and worked to enforce them, although inspection and judicial capacity limits constrained enforcement effectiveness.Land tenure is often unclear, and disputes are common. Communities have protested or rejected instances of government allocation of land for infrastructure or public use. Groups have complained that expropriated property was not valued properly by the government when paying compensation.Civil society and other organizations generally monitor and promote human rights, both related to corporate actions and otherwise, without undue interference from the government.Timor-Leste is not an adherent to the OECD Guidelines for Multinational Enterprises. The government does not participate in the Voluntary Principles on Security and Human Rights. Private security companies exist and are commonly used, but Timor-Leste is not a signatory of The Montreux Document on Private Military and Security Companies and is not a participant in the International Code of Conduct for Private Security Service Providers&#8217; Association (ICoCA).																										Additional Resources										Department of StateCountry Reports on Human Rights Practices ( https://www.state.gov/reports-bureau-of-democracy-human-rights-and-labor/country-reports-on-human-rights-practices/ )Trafficking in Persons Report ( https://www.state.gov/trafficking-in-persons-report/)Guidance on Implementing the &#8220;UN Guiding Principles&#8221; for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities ( https://www.state.gov/key-topics-bureau-of-democracy-human-rights-and-labor/due-diligence-guidance/)U.S. National Contact Point for the OECD Guidelines for Multinational Enterprises ( https://www.state.gov/u-s-national-contact-point-for-the-oecd-guidelines-for-multinational-enterprises/)Xinjiang Supply Chain Business Advisory ( https://www.state.gov/xinjiang-supply-chain-business-advisory/)Department of the TreasuryOFAC Recent Actions ( https://ofac.treasury.gov/recent-actions )Department of LaborFindings on the Worst Forms of Child Labor Report ( https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings )List of Goods Produced by Child Labor or Forced Labor ( https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods )Sweat &amp; Toil: Child Labor, Forced Labor, and Human Trafficking Around the World ( https://www.dol.gov/general/apps/ilab )Comply Chain ( https://www.dol.gov/ilab/complychain/ )																																				Climate Issues										Timor-Leste released a National Climate Change Policy in 2020 but has not established any policies to reach net-zero carbon emissions by 2050. The country submitted a National Adaptation Plan (NAP) in 2020 as part of its commitment to the UNFCCC and the Paris Agreement. Timor-Leste submitted its first Intended Nationally Determined Contributions in 2017, and updated NDCs in August 2022. The government does not have policies or regulatory incentives to promote renewable energy. Timor-Leste has enacted several laws addressing environmental policies, including the Environmental Basic Law (which includes climate change adaptation and mitigation issues), the Environmental License Decree Law, the Operational Law of Clean Development Mechanism, The Decree Law on Export, Import, and Use of Ozone Depleting Substances in Timor-Leste, and the Decree Law on Protected Areas. There are no policies that target commodity or supply chain drivers of deforestation. Public procurement policies do not include environmental or green growth considerations for resource efficiency, pollution abatement, or climate resilience. Data for greenhouse gas emissions do not exist beyond 2015.																																												9. Corruption						    																						Transparency International ranked Timor-Leste 82 out of 180 countries in its 2022 Corruption Perceptions Index. In 2010, the Anti-Corruption Commission (CAC), an independent agency, opened its doors, with support from USAID and the U.S. Millennium Challenge Corporation. That same year, the Office of the Prosecutor General forwarded its first high-profile corruption case to the courts. Since then, the CAC has referred several cases to the Office of the Prosecutor General, which have resulted in several ongoing investigations. In 2016, former Minister of Finance Emilia Pires and former Vice-Minister of Health Madalena Hanjam, were convicted of participating in improper procurement of hospital beds. Both received prison sentences. In 2020 and 2021, the government waived immunity for multiple former and current parliamentarians to criminal prosecution for fraud. In January 2022, the Minister of Parliamentary Affairs and Social Justice was accused of corruption involving a contract to supply set-top cable boxes. The Prime Minister waived any immunities, and the CAC conducted an investigation. The Dili Prosecutor’s office will determine if there is sufficient evidence to submit the case to the court. As of April 2023, the investigation process was continuing. Under Timorese law, bribery is a crime punishable with up to four years of imprisonment. Timor-Leste has also signed and ratified the UN Anticorruption Convention; however, it is not a party to the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.The Law on Measures to Prevent and Fight Corruption (No. 7/2020) went into effect in late 2020. The law identifies offenses, including in the private sector, which include penalties for construction fraud and a failure to declare assets or unjustified wealth. The law extends to family members of officials. Conflict-of-interest in contract awards and procurements are regulated. The law is applied in a non-discriminatory manner. Government encourages internal codes of conduct for the private sector and private companies generally implement ethics controls. Timor-Leste has ratified the UN Anti-Corruption Convention. NGOs reporting on corruption enjoy protection.																										Resources to Report Corruption										Contact at the government agency or agencies that are responsible for combating corruption:Anti-Corruption Commission of Timor-LesteRua Sergio Vieira de MelloFarolDili, Timor-LestePhone: +670 77305564; +670 77326597; or +670 77326599Contact at a &#8220;watchdog&#8221; organization:La’o Hamutuk – Walk Together PO Box 340, Bebora, Dili Timor-LestePhone: +670 3321040Mobile: +670 77234330Email:  info@laohamutuk.org Lalenok ba Ema Hotu (LABEH) – The Mirror for the People Avenida Presidente Nicolao Lobato-Comoro-(in front of SDN.07-Malinamuc)ComoroDili, Timor-LestePhone: +670 3331068Email:  info@labeh.org 																																												10. Political and Security Environment						    																						Timor-Leste emerged from a history of colonialism, occupation, and civil strife to the period of relative domestic calm that it has enjoyed for more than a decade. After twenty-four years of occupation by Indonesia, under an agreement between the United Nations, former colonial power Portugal, and Indonesia, a popular consultation was held on August 30, 1999, to allow the Timorese to vote on whether to remain part of Indonesia or to become independent. Seventy-nine percent of Timor-Leste voters rejected Indonesia’s governance proposal, effectively putting Timor-Leste on a path to independence. Timorese militias opposed to the decision organized and, supported by the Indonesian military, commenced a campaign of retribution. Approximately 1,300 Timorese were killed and as many as 300,000 people were forcibly relocated into West Timor as refugees. The majority of the country&#8217;s infrastructure, including homes, irrigation systems, water supply systems, and schools, and nearly 100 percent of the country&#8217;s electrical grid were destroyed. On September 20, 1999, at the request of the Timorese government, Australia led a deployment of peacekeeping troops (the International Force for East Timor, INTERFET), which ended the violence.After almost three years of UN administration, Timor-Leste became a fully independent republic with a parliamentary form of government on May 20, 2002. UN peacekeepers departed in 2005 leaving a special political mission in its stead. In 2006, however, civil order collapsed due to domestic political struggles, which led to armed conflict between the police and military. The government of Timor-Leste urgently requested police and military assistance from Australia, New Zealand, Malaysia, and Portugal. In August 2006, the UN Security Council passed Resolution 1704, creating the United Nations Integrated Mission in Timor-Leste (UNMIT) to assist in restoring stability, rebuilding the security sector institutions, supporting the Government of Timor-Leste to conduct the 2007 presidential and parliamentary elections, and achieving accountability for crimes against humanity and atrocities committed in 1999. An Australian-led International Stabilization Force (ISF) supported UNMIT’s mission. Timor-Leste held free, fair, and largely peaceful presidential and parliamentary elections in 2007. Nobel Peace Prize Laureate José Ramos-Horta assumed the presidency, and former guerilla leader and outgoing president Xanana Gusmão became prime minister.National elections for president and parliament in 2012 were peaceful, free, and fair. UNMIT and the ISF departed from Timor-Leste at the end of 2012. Following free, fair, and peaceful parliamentary elections in July 2017, Mari bin Amude Alkatiri became prime minister of a two-party coalition government. In a March 2017 presidential election, also judged as free and fair, voters elected Francisco Lu Olo Guterres. In contrast with previous years, elections proceeded without extensive support from the international community. Security forces maintained public order with no reported incidents of excessive use of force. Alkatiri’s government was not able to pass its program or budget. Early parliamentary elections in May 2018 were considered fair and transparent, with 81% voter turnout.In January 2020, the coalition government rejected its own budget in protest of ongoing ministerial vacancies, and the prime minister submitted his resignation to the president. The prime minister subsequently withdrew the request to resign and assumed leadership of the country’s COVID-19 response. The president maintains the authority to determine whether the country will hold early elections to resolve a political impasse or whether the political parties in parliament should form a new government. Following changes in the ruling coalition membership, the Eighth Constitutional Government continues. After political instability in the governing coalition delayed passage of the 2020 budget by ten months, the 2021, 2022, and 2023 budgets were successfully passed on time. In April 2021, the government passed a budget amendment responding to the continuing COVID-19 pandemic and natural disasters, including severe flooding in Dili.Two rounds of presidential elections in March and April 2022 were peaceful, free, and fair, with over 75% voter turnout. Parliamentary elections are scheduled for May 2023.Occasional factional political violence can temporarily impact local retail businesses. There have been no instances in the past ten years of damage to projects or installations.																																		11. Labor Policies and Practices						    																						The Private Investment Law stipulates that all investors are required to employ Timorese workers and promote their professional training for the performance of qualified functions, including the improvement of technical or managerial knowledge. Domestic labor laws are not waived to attract investment. The law does grant qualified investors the right to a minimum of five work visas for workers or collaborators qualified for supervisory, directing, or technical functions necessary for the investment project, and the ability to request work visas for foreign workers required to install or operate the venture. Timor-Leste’s immigration laws permit workers to apply for work permits in-country after entry on a 30-day visa acquired at arrival; however, U.S. citizens consistently report difficulties getting work permits approved in time. Delays in work permits can subsequently lead to penalties for overstaying visas, which can amount to hundreds of dollars.Shortages of skilled labor remain a significant constraint on private sector growth in Timor-Leste. Shortages of skilled workers are particularly notable in the construction and fishing sectors. Public and private sector employers also consistently encounter problems locating managerial, clerical, and other office staff. There is a surplus of young, inexperienced, unskilled labor, with roughly 15,000 new entrants into the labor market each year in an economy with an estimated total of 70,000 formal sector jobs for a total country population of approximately 1.36 million. Youth unemployment is estimated at 13.4%. Agriculture, the largest sector, employs 59% of the population, the majority of which is subsistence agriculture. Data shows that the unemployment rate increases at higher levels of education, indicating a mismatch between training and skills sought by employers, and in particular a lack of vocational training. The government, donors, and employers place considerable emphasis on education and training to build local capacity. This policy aims not only to fill the skill gaps but also to meet local hiring requirements for foreign investors. There is a significant gender imbalance in employment, with the percentage of working age women having substantially lower participation rates, and higher unemployment rates than men.Only about a quarter of the working age population works in the formal economy. About 28% are unemployed, unpaid household workers, informal workers, retired, or not seeking work. Another 27% are subsistence farmers or fisher people, and 21% are students. Apart from agriculture and fisheries, informal employment largely involves small-scale commerce, including informal vending and handicrafts. Of those formally employed, 82% work in the capital municipality of Dili. The oil and gas sector employs only 0.1% of the working age population, although it contributes 12% of the national GDP.Foreign migrant workers constitute a small portion of the workforce, with unemployment rates equal to or higher than domestic workers. Substantial numbers of Timorese go overseas to work, with the United Kingdom, Australia, and South Korea being popular destinations. Government programs support training for out-going migrant workers. Worker remittances represent a significant source of national income, totaling $397 million in 2020.The 2012 Labor Law put in place regulations for labor conditions, including a 44-hour work week, standard benefits such as leave and premium pay for overtime, and minimum standards of worker health and safety. The minimum wage for full-time employment remains set at $115 per month, where it was established by the government in 2012. Enforcement of labor laws declined in recent years due to budget shortfalls, and enforcement in 2020 and 2021 was constrained by COVID-19.The government’s labor inspectorate identifies and remediates labor violations and holds violators accountable, investigates and prosecutes unfair labor practices, such as harassment and/or dismissal of union members, and investigates and prosecutes instances of forced and/or child labor. Most cases come from temporary labor agreements in the construction and service sectors. Labor inspection numbers rose in 2021 after having been limited in 2020 due to the COVID-19 pandemic and related government measures. The labor inspectorate does not have the authority to inspect informal workplaces.As stipulated in labor code, workers have the right to strike; however, they must notify companies in advance of the planned strike, and most labor disputes are settled through mediation and arbitration. Workers must present claims in writing to their employer and give the employer five days to respond prior to declaring a strike. If the employers do not respond within that timeframe or respond but the parties do not reach agreement within 20 days, the organization representing the workers must provide five days’ advance notice of a strike. Strikes can be stopped by the government if they disturb public order.Labor unions exist and engage in collective bargaining and exercise rights to strike. Timor-Leste’s formal economy is small, and no data is available on percentages of employees covered by unions or participating in collective bargaining.Various businesses protested state-of-emergency provisions imposed to control the COVID-19 pandemic that severely limited economic activity. Government responses and outcomes have been peaceful. A successful vaccination campaign and falling case counts led to the relaxation of most restrictive measures. Before the COVID-19 pandemic, strikes against international companies occurred primarily over employment contracts and salary entitlements but yielded limited disruption.The Government of Timor-Leste is member of the following major international labor and human rights conventions:International Labor Organization (ILO) Convention No. 29 on Forced LaborILO Convention No. 87 on Freedom of Association and Protection of the Right to OrganizeILO Convention No. 98 on the Right to Organize and Collective BargainingILO Convention No. 182 on the Worst Forms of Child LaborInternational Covenant on Civil and Political RightsInternational Covenant on Economic, Social, and Cultural RightsThe ILO has raised concerns about Timor-Leste’s compliance with reporting requirements, and the completeness of the country’s legal regime relating to labor. Observers have not raised serious questions regarding compliance with international labor standards in practice.The Maritime Boundary Treaty with Australia, which entered into force in 2019, delineates special labor and migration regulations for Timorese and foreign workers on the Bayu Undan project and other offshore projects in the EEZ.																																		12. U.S. International Development Finance Corporation (DFC), and Other Investment Insurance or Development Finance Programs						    																						The Overseas Private Investment Corporation (OPIC) and the Government of Timor-Leste signed an Investment Incentive Agreement in 2002. OPIC became the U.S. International Development Finance Corporation (DFC). U.S. government investment support does not require prior approval by the government of Timor-Leste. To date the DFC has not negotiated an amendment of or replacement to the 2002 agreement. There are no current active or planned DFC projects in Timor-Leste. Potential U.S. investors and exporters are encouraged to contact the U.S. Export Import bank ( www.exim.gov ), the U.S. International Development Finance Corporation (www.dfc.gov), and the United States Trade and Development Agency ( www.ustda.gov ). Timor-Leste has been a member of the Multilateral Investment Guarantee Agency (MIGA) since 2002, and the International Finance Corporation (IFC) has operated in Timor-Leste since 2006.																																		13. Foreign Direct Investment Statistics						    																						&nbsp;Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/EconomyHost Country Statistical source*USG or international statistical sourceUSG or International Source of Data:  BEA; IMF; Eurostat; UNCTAD, OtherEconomic DataYearAmountYearAmountHost Country Gross Domestic Product (GDP) (USD)2021N/A2021$3.62BWorld Bank data available athttps://data.worldbank.org/county/timor-lese?display=graphU.S. FDI in partner country ($M USD, stock positions)2021N/A2021$0BEA data available at https://apps.bea.gov/international/factsheet/factsheet.html#660Host country’s FDI in the United States ($M USD, stock positions)2021N/A2021$0BEA data available at https://apps.bea.gov/international/factsheet/factsheet.html#660Total inbound stock of FDI as % host GDP2021N/A20214.2%UNCTAD data available athttps://unctadstat.unctad.org/CountryProfile/GeneralProfile/en-GB/626/index.html    &nbsp;Table 3: Sources and Destination of FDIData not available.																																		14. Contact for More Information						    																						Political, Economic, and Consular SectionUnited States EmbassyAv. De Portugal, Praia dos CoqueirosDili, Timor-LestePhone: +670 330-2400Email: DiliEcon@state.gov																										    							View report by:																				Albania											Algeria											Andorra											Angola											Antigua and Barbuda											Argentina											Armenia											Australia											Austria											Azerbaijan											The Bahamas											Bahrain											Bangladesh											Barbados											Belarus											Belgium											Belize											Benin											Bolivia											Bosnia and Herzegovina											Botswana											Brazil											Brunei											Bulgaria											Burkina Faso											Burma											Burundi											Cabo Verde											Cambodia											Cameroon											Canada											Chile											China											Colombia											Costa Rica											Côte d’Ivoire											Croatia											Cyprus											Czechia											Democratic Republic of the Congo											Denmark											Djibouti											Dominica											Dominican Republic											Ecuador											Egypt											El Salvador											Equatorial Guinea											Eritrea											Estonia											Eswatini											Ethiopia											Fiji											Finland											France and Monaco											Gabon											The Gambia											Georgia											Germany											Ghana											Greece											Grenada											Guatemala											Guinea											Guyana											Honduras											Haiti											Hong Kong											Hungary											Iceland											India											Indonesia											Iraq											Ireland											Israel											Italy											Jamaica											Japan											Jordan											Kazakhstan											Kenya											Kosovo											Kyrgyz Republic											Laos											Latvia											Lebanon											Lesotho											Liberia											Libya											Lithuania											Luxembourg											Macau											Madagascar											Malawi											Malaysia											Maldives											Mali											Malta											Marshall Islands											Mauritania											Mauritius											Mexico											Micronesia											Moldova											Mongolia											Montenegro											Morocco											Mozambique											Namibia											Nepal											Netherlands											New Zealand											Nicaragua											Niger											Nigeria											North Macedonia											Norway											Oman											Pakistan											Palau											Panama											Papua New Guinea											Paraguay											Peru											Philippines											Poland											Portugal											Qatar											Republic of the Congo											Romania											Rwanda											Saint Kitts and Nevis											Saint Lucia											Saint Vincent and the Grenadines											Samoa											Sao Tome and Principe											Saudi Arabia											Senegal											Serbia											Seychelles											Sierra Leone											Singapore											Slovakia											Slovenia											Somalia											South Africa											South Korea											South Sudan											Spain											Sri Lanka											Suriname											Sweden											Switzerland											Taiwan											Tajikistan											Tanzania											Thailand											Timor-Leste											Togo											Trinidad and Tobago											Tunisia											Türkiye											United Arab Emirates											Uganda											Ukraine											United Kingdom											Uruguay											Uzbekistan											Vietnam											West Bank and Gaza											Zambia											Zimbabwe															Build A Custom Report																						On This Page				search													>																										EXECUTIVE SUMMARY																1. Openness To, and Restrictions Upon, Foreign Investment																																							Policies Towards Foreign Direct Investment																																																						Limits on Foreign Control and Right to Private Ownership and Establishment																																																						Other Investment Policy Reviews																																																						Civil Society																																																						Business Facilitation																																																						Outward Investment																																																			2. Bilateral Investment and Taxation Treaties																3. Legal Regime																																							Transparency of the Regulatory System																																																						International Regulatory Considerations																																																						Legal System and Judicial Independence																																																						Laws and Regulations on Foreign Direct Investment																																																						Competition and Antitrust Laws																																																						Expropriation and Compensation																																																						Dispute Settlement																																																				ICSID Convention and New York Convention																																												Investor-State Dispute Settlement																																												International Commercial Arbitration and Foreign Courts																																																																																				Bankruptcy Regulations																																																			4. Industrial Policies																																							Investment Incentives																																																						Foreign Trade Zones/Free Ports/Trade Facilitation																																																						Performance and Data Localization Requirements																																																			5. Protection of Property Rights																																							Real Property																																																						Intellectual Property Rights																																																			6. Financial Sector																																							Capital Markets and Portfolio Investment																																																						Money and Banking System																																																						Foreign Exchange and Remittances																																																				Foreign Exchange																																												Remittance Policies																																																																																				Sovereign Wealth Funds																																																			7. State-Owned Enterprises																																							Privatization Program																																																			8. Responsible Business Conduct																																							Additional Resources																																																						Climate Issues																																																			9. Corruption																																							Resources to Report Corruption																																																			10. Political and Security Environment																11. Labor Policies and Practices																12. U.S. International Development Finance Corporation (DFC), and Other Investment Insurance or Development Finance Programs																13. Foreign Direct Investment Statistics																14. Contact for More Information																						Tags																					Bureau of East Asian and Pacific Affairs																								Bureau of Economic and Business Affairs																								Timor-Leste
- Timor-Leste HomeReportsOffice to Monitor and Combat Trafficking in Persons2023 Trafficking in Persons Report&#8230;Timor-Leste				hide	document.addEventListener("DOMContentLoaded", function(event) {	if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}});																							2023 Trafficking in Persons Report: Timor-Leste																																					Office to Monitor and Combat Trafficking in Persons																																																																																																				 In this section										/																							TIMOR-LESTE (Tier 2)																																													TIMOR-LESTE (Tier 2)																															PRIORITIZED RECOMMENATIONS:																																																																																		PROSECUTION																																																																																		PROTECTION																																																																																		PREVENTION																																																																																		TRAFFICKING PROFILE:																																																																																																								TIMOR-LESTE (Tier 2)				The Government of Timor-Leste does not fully meet the minimum standards for the elimination of trafficking but is making significant efforts to do so. The government demonstrated overall increasing efforts compared with the previous reporting period, considering the impact of the COVID-19 pandemic, if any, on its anti-trafficking capacity; therefore Timor-Leste remained on Tier 2. These efforts included adopting and funding training on SOPs to identify trafficking victims and refer them to care; identifying labor and sex trafficking victims, referring some to NGO shelters, and providing psycho-social support to others; initiating investigations into suspected labor and sex traffickers; and funding the anti-trafficking commission (KLATU). However, the government did not meet the minimum standards in several key areas. The government did not prosecute or convict any traffickers – many officials still lacked understanding of trafficking, which inhibited victim identification, including among foreigners engaged in commercial sex – and KLATU lacked sufficient funding to complete its draft 2023-2028 NAP. The government did not provide trafficking-specific services, and prosecutors required trafficking victims to stay in shelters until they had sufficient evidence for criminal proceedings. Moreover, the government only provided services to trafficking victims who agreed to participate in criminal investigations against their traffickers.																																					PRIORITIZED RECOMMENATIONS:						    																																															Increase investigations, prosecutions, and convictions for trafficking in accordance with anti-trafficking laws, including of complicit officials.Using new SOPs and victim-centered interviews, proactively identify trafficking victims among vulnerable populations, including individuals in commercial sex, domestic workers, and migrant workers on fishing vessels.Train or fund training for officials on SOPs, including employing them during commercial sex raids, among foreigners in detention, and prior to initiating deportation.Delineate among law enforcement responsibilities for trafficking investigations.Increase resources for trafficking victim protection services, including for victims who do not participate in criminal investigations, and proactively offer male and female victims the same services.Provide judges and prosecutors with copies of the anti-trafficking law in their primary language.Permit victims the freedom to choose whether to stay in government- or NGO-provided shelters and permit foreign victims to choose when to be repatriated.Proactively inform trafficking victims of available legal services, including assistance in seeking compensation.Fully fund KLATU to finalize and begin implementation of the draft 2023-2028 NAP.Improve nationwide law enforcement and victim identification data collection.Screen for trafficking indicators among Cuban overseas workers, including medical professionals.Eliminate worker-paid recruitment fees.																																												PROSECUTION						    																																															The government maintained law enforcement efforts. Articles 163 and 164 of the criminal code criminalized all forms of labor and sex trafficking and prescribed penalties of eight to 20 years’ imprisonment, which were sufficiently stringent, and, with respect to sex trafficking, commensurate with those prescribed for other serious crimes, such as rape. Despite the existence of a trafficking law, some law enforcement and judicial officials continued to treat trafficking crimes as lesser offenses, such as immigration or labor violations. In addition, many judges and prosecutors lacked an accessible copy of anti-trafficking laws because Timorese law required publication of laws in Portuguese, a language in which not all judges and prosecutors were fully fluent.The government investigated 12 trafficking cases (eight new and four continued from previous reporting periods) – an increase from no new investigations the previous reporting period. The Office of the Prosecutor General (OPG) dismissed one case, and 11 cases remained under investigation. The government did not prosecute or convict any traffickers – a decrease from seven prosecutions of 18 alleged traffickers and two convictions in the previous reporting period. In one case, the government investigated five individuals – three Timorese, one Bahraini, and one Sudanese – for alleged labor trafficking of seven Timorese women in the United Arab Emirates (UAE). The Ministry of Justice’s Forensic Criminal Investigative Police (PCIC) investigated and referred the five individuals for prosecution, but the court declined to hear the case for lack of evidence and placed the individuals under house arrest pending further investigation. PCIC also arrested and referred for prosecution a local travel agency owner for facilitating the travel of Timorese youth to Portugal, some of whom were victims of trafficking. OPG commenced prosecution for human trafficking, but the court again declined to hear the case for lack of evidence and placed the accused under house arrest pending further investigation. The government did not report any investigations, prosecutions, or convictions of government employees complicit in human trafficking crimes. The government acknowledged possible trafficking crimes in the fishing industry in Timor-Leste’s coastal waters and exclusive economic zone to the south, but it lacked the vessels, training, and human resources to patrol, inspect, and interdict vessels in its waters and investigate possible trafficking crimes.During the reporting period, the government removed the mandate for trafficking from the Timor-Leste National Police’s (PNTL) Vulnerable Person Unit (VPU) and transferred it to PCIC. VPU and PCIC continued to investigate trafficking cases and did not have a plan for collaborating or sharing information. International organizations and civil society lamented the change, noting several VPU officers had recently received training on new trafficking SOPs; PCIC had fewer officers than VPU (two dedicated to trafficking and gender-based violence (GBV) in Dili, versus 94 VPU officers stationed around the country); and PCIC was not a victim-centered unit. The government did not have mutual legal assistance agreements with countries in which Timorese are exploited abroad, hampering investigation and prosecution of transnational trafficking.Foreign governments and international organizations provided anti-trafficking training to PNTL, including VPU, immigration and border officials, and service providers. Timorese law enforcement lacked the training, data management systems, and IT infrastructure to conduct investigative research in trafficking cases. Border officials lacked training on trafficking, including how to identify and where to refer cases.																																												PROTECTION						    																																															The government increased efforts to identify and protect victims. The government identified 10 trafficking victims (seven labor and three sex trafficking) and 32 potential trafficking victims, an increase from one Timorese child sex trafficking victim identified in the previous reporting period. Most victims were Timorese exploited in forced labor abroad. With technical assistance from an international organization, the government finalized and formally adopted SOPs to identify trafficking victims and refer them to care. The government funded the organization to train some law enforcement and immigration officials on the SOPs. According to the SOPs, multiple government and NGO front-line responders could refer a suspected trafficking victim for care, and, upon referral, an interagency group of police, immigration officers, prosecutors, Ministry of Social Services (MSSI) officials, and NGOs coordinates care. The government only provided shelter and services to victims who participated in investigations against their alleged traffickers. MSSI had officers in all 13 districts that continued to work with an NGO to provide GBV and trafficking victims with medical and psychological care, security, and legal assistance. The government referred three sex trafficking victims to NGO shelters, and MSSI provided psycho-social, medical, and reintegration support to the sex trafficking victims and several labor trafficking victims. MSSI allocated $2,500 to support GBV and trafficking victims – a substantial decrease from $5,000 and $10,000 allocated in the previous two years; as in the previous reporting period, MSSI did not report utilizing this funding to assist any trafficking victims. VPU had $8,000 that it could use to provide emergency assistance to trafficking or GBV victims; it did not report using any funds. OPG required trafficking victims to stay in shelters until police and prosecutors secured evidence for law enforcement proceedings. The government did not operate any shelters for trafficking victims. MSSI provided funding to NGOs that cared for GBV and trafficking victims. NGOs reported their GBV shelters were not designed for trafficking victims and had limited capacity. The shelters also could not accommodate males, although NGOs stated they could find other lodging if they identified male victims. Shelters and services were primarily available in Dili and other urban areas; the quality and availability of victim care in rural areas remained lower.Article 9 of the anti-trafficking law permitted victims to seek compensation for losses and damages incurred through trafficking, courts could order restitution in trafficking cases, the government had a compensation fund that could assist trafficking victims, and Timorese laws authorized the government to provide legal assistance to trafficking victims seeking compensation. The government did not assist any victims through these mechanisms. The government did not report whether any trafficking victims participated in trials against traffickers and received protection services to facilitate their participation. NGOs noted that, despite protections available for victim-witnesses, judges often did not apply them.The government repatriated seven women labor trafficking victims from the UAE, compared to not identifying or repatriating any Timorese trafficking victims exploited abroad in the previous reporting period. To address emerging reports that scammers recruited young Timorese to take to Portugal with false promises of employment but abandoned them upon arrival, the government allocated $3 million to fund temporary housing for the approximately 5,000 Timorese stranded in Portugal and, in collaboration with an international organization, repatriated approximately 20 people, including those at risk of trafficking. Foreign trafficking victims identified in Timor-Leste could not be repatriated without OPG approval. The government’s policies allowed foreign victims alternatives to their removal to countries where they may face hardship or retribution; it did not provide such assistance.Regulations and guidance accompanying the 2017 anti-trafficking law stated that trafficking victims may not be detained, accused, or judged for having entered or resided illegally in Timor-Leste nor for having perpetrated crimes traffickers compelled them to commit. Neither the government nor civil society partners reported specific cases in which authorities penalized trafficking victims solely for unlawful acts committed as a direct result of being trafficked. However, due to a lack of training and inadequate screening for trafficking indicators, immigration and law enforcement officials may have detained or deported some unidentified trafficking victims. For example, officials and NGOs reported traffickers coached victims to state they were voluntarily in commercial sex, which officials reported made it difficult for them to identify victims during law enforcement actions. Immigration officials deported approximately 50 Indonesians for visa violations, including 22 women working in bars, hotels, restaurants, and salons. Although officials reported screening for trafficking before deportation, observers countered that only a handful of immigration officials understood trafficking and could adequately screen, and immigration officials did not conduct victim-centered interviews; for example, officials sometimes questioned suspected trafficking victims in the presence of alleged traffickers.																																												PREVENTION						    																																															The government maintained efforts to prevent trafficking. KLATU, which coordinated interagency anti-trafficking efforts, met 11 times. The government allocated $475,000 to KLATU for fiscal year 2023, the same as in the prior reporting period. KLATU continued to draft a five-year anti-trafficking NAP for 2023-2028; the NAP remained pending at the end of the reporting period. KLATU did not have sufficient funding to establish a secretariat or complete, approve, and disseminate the draft NAP. In addition, some observers reported that although KLATU’s mandate centered on interagency coordination and strategic planning, KLATU focused, in practice, on responding to individual trafficking cases.The Labor Inspector Office, which had the authority to monitor workplaces for labor violations, did not identify any labor trafficking cases; authorities acknowledged labor officials lacked knowledge of labor trafficking and the new SOPs, and the office was not a member of KLATU. Timor-Leste’s labor code did not prohibit worker-paid recruitment fees. Immigration officials lacked the manpower, resources, and legal authority to proactively investigate tourist or work visa violations as potential trafficking cases, such as by requesting wage or staff information from businesses employing foreign workers, and the new SOPs did not include guidance on referring suspected trafficking cases from immigration to labor inspectors or police.With funding from an international organization, the government conducted an assessment on agencies’ anti-trafficking activities. The government did not conduct research to assess human trafficking in the country. The government did not conduct a countrywide anti-trafficking awareness campaign, but it collaborated with international organizations and NGOs to raise awareness of safe migration, including preventing labor trafficking. There remained a substantial gap in the understanding of trafficking among the population. Civil society reported awareness of safe and legal migration channels and trafficking was low among Timorese living in rural areas, who were the most likely to migrate abroad for work or education. The government did not have an anti-trafficking hotline, but VPU had a phone number to report criminal complaints and request assistance; the government did not report any trafficking investigations or victim identification resulting from the hotline. To prevent the fraudulent recruitment of Timorese youth for non-existent jobs in Portugal, in October 2022, the government began requiring Timorese traveling from Dili airport to Portugal for work to complete a sponsorship form and secure approval from Timorese and Portuguese immigration authorities prior to departure. The Ministry of Interior publicized the new requirement on social media and at travel agencies. The government had labor attaches in the Republic of Korea and Australia that could assist Timorese with labor disputes; they did not receive any reports of trafficking. The government did not make efforts to reduce the demand for commercial sex acts. The government did not provide anti-trafficking training for its diplomatic personnel.																																												TRAFFICKING PROFILE:						    																																															As reported over the past five years, human traffickers exploit domestic and foreign victims in Timor-Leste, and traffickers exploit victims from Timor-Leste abroad. Poor economic conditions and limited educational opportunities create trafficking vulnerabilities for Timorese, in particular women and girls from rural areas; limited economic opportunities also create increased trafficking vulnerabilities for LGBTQI+ persons. Traffickers lead Timorese women, girls, and occasionally young men and boys from rural areas to the capital with the promise of employment or education and exploit them in sex trafficking or domestic servitude. Some rural Timorese families send children to live with relatives in the capital, where some are exploited in labor and sex trafficking. Traffickers exploit Timorese men in forced labor in agriculture, construction, and mining. Some Timorese families place children in bonded households and agricultural labor, primarily in domestic rural areas but also abroad, to pay off family debts. Traffickers also exploit Timorese in forced labor in manufacturing and street vending and in restaurants and storefronts. Communities affected by HIV/AIDS are believed to be vulnerable to trafficking. In 2022, allegations resurfaced that a former Timorese independence figure, bishop, and Nobel Prize laureate perpetrated child sex trafficking against multiple boys, including those orphaned during the Indonesian occupation and Timor-Leste’s fight for independence; the alleged sex trafficking occurred in the late 1990s and early 2000s, prior to Timor-Leste’s independence.Traffickers deceive women and teenagers with promises of scholarship opportunities or employment in Indonesia, Malaysia, Cambodia, the People’s Republic of China (PRC), other countries in the region, and the UAE; often, traffickers take victims to a different country than promised, withhold their passports, pay them little to nothing, and force them into labor, including domestic servitude. During the reporting period, reports emerged that scammers recruited thousands of Timorese youth for non-existent jobs in Portugal; upon arrival in Portugal, they were vulnerable to trafficking. Over the past few years, approximately 1,200 Timorese migrant workers in the Republic of Korea and Australia left their employers or did not return to Timor-Leste at the conclusion of their contracts; undocumented workers are vulnerable to trafficking. Traffickers also recruit Timorese women, send them to the PRC, Indonesia, or Malaysia, and force them into commercial sex. Frequently, Timorese victims overseas first transit through the porous border with Indonesia; some remain and are exploited in Indonesia. Some routes used by smugglers along the Indonesia–Timor-Leste border are also possible routes used by traffickers. Sex traffickers in Timor-Leste target foreign women from East and Southeast Asia. Transnational traffickers may be members of Indonesian or PRC national organized crime syndicates, which rotate foreign victims of sex trafficking in and out of the country for the length of a 30-day tourist visa to avoid raising suspicions of law enforcement officers through visa overstay violations. Government officials and civil society acknowledged reports of exploitation and abuse, including potential labor trafficking of construction workers from the PRC in Dili, often as part of the Belt and Road Initiative. Police accept bribes from establishments involved in trafficking or from traffickers attempting to cross borders illegally. Traffickers exploit foreign fishing crews in forced labor on foreign-flagged vessels that transit Timor-Leste waters. There were approximately 160 Cuban medical workers in Timor-Leste in 2022; they may have been forced to work by the Cuban government.																																				    							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- Timor-Leste Parliamentary Elections Matthew Miller, Department SpokespersonThe United States congratulates Timor-Leste on its parliamentary elections.  We commend Timorese authorities for administering a free, fair, and transparent election and the hundreds of thousands of Timorese voters who peacefully cast their ballots and made their voices heard.  This election reflects the commitment of the people of Timor-Leste to democracy and peaceful political processes and serves as an inspiration for democracy globally.  We wish the newly elected leaders success in their endeavors to serve Timor-Leste and its people and to build a secure, inclusive, and prosperous society.
- Timor-Leste National Day Antony J. Blinken, Secretary of StateOn behalf of the Government of the United States of America, I would like to congratulate the people of Timor-Leste as you celebrate the anniversary of your Restoration of Independence on May 20.In the 21 years since Timor-Leste restored its independence, the United States and Timor-Leste have enjoyed a strong friendship and partnership based on mutual respect and a shared commitment to democratic values.  We are working together to advance human rights, expand economic opportunities, address the climate crisis, and safeguard a free and open Indo-Pacific.  We look forward to further strengthening our partnership and expanding our cooperation in the years ahead.Again, our congratulations and best wishes to the people of Timor-Leste as you celebrate your Restoration of Independence Day.
- Timor-Leste HomeReportsOffice of International Religious Freedom2022 Report on International Religious Freedom&#8230;Timor-Leste				hide	document.addEventListener("DOMContentLoaded", function(event) {	if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}});																							2022 Report on International Religious Freedom: Timor-Leste																																					Office of International Religious Freedom																																																																																							Download Report																																																																																	 In this section										/																							Executive Summary																																													Executive Summary																															Section I. Religious Demography																																																																																		Section II. Status of Government Respect for Religious Freedom																																																									Legal Framework																																																																											Government Practices																																																																																	Section III. Status of Societal Respect for Religious Freedom																																																																																		Section IV. U.S. Government Policy and Engagement																																																																																																								Executive Summary				The constitution provides for freedom of conscience and worship and freedom of religious instruction. There is no official state religion, although Catholicism is the predominant religion. Religious organizations may register with the government under the regulations provided for nonprofit corporate bodies.Religious minority groups continued to report instances of civil servants rejecting marriage and birth certificates issued by religious organizations other than the Roman Catholic Church. Muslim religious leaders also continued to express concerns regarding discriminatory practices in civil service hiring. In May, as part of its annual budget, the government allocated $15 million for distribution among the country’s three Catholic dioceses, in line with its concordat with the Holy See. Non-Catholic groups reported tensions regarding unequal allocation of government funds, since non-Catholic religious groups needed to apply for funding from a separate government source instead of receiving a dedicated budget allocation. The multireligious Asosiasaun Turizmu Relijiouzu Timor-Leste (ATR-TL) or Faith-based Tourism Association implemented several programs under a $110,000 grant from the government. Government leaders continued to meet with religious leaders as part of its engagement with civil society. The government adopted the 2019 Document on Human Fraternity for World Peace and Living Together as one of its national documents and added it to the country’s education curriculum. The document is a joint statement signed by Pope Francis and Islamic scholar Sheikh Ahmed al-Tayeb in 2019 promoting peace and harmony between Christians and Muslims.Members of minority religious groups, including from the Muslim and Protestant communities, generally reported religious tolerance in the country. Some noted, however, that there was continuing strong societal pressure for individuals to remain in the Catholic Church, particularly from family or community members.U.S. embassy officials engaged regularly with government officials on the subject of religious freedom, including from the Office of the Prime Minister on issues including discrimination in civil service hiring, the rejection by public officials of documentation of religious minority groups, and budget allocations to minority religious groups. The embassy continued to fund programs to promote religious freedom and the preservation of religious sites.																														Section I.													 Religious Demography												    																																															The U.S. government estimates the total population at 1.5 million (midyear 2022).  According to the 2015 census, 97.6 percent of the population are Catholic, approximately 2 percent Protestant, and less than 1 percent Muslim.  Protestant denominations include the Assemblies of God, Baptists, Presbyterians, Methodists, Seventh-day Adventists, Pentecostals, Jehovah’s Witnesses, and the Christian Vision Church.  There are also several small nondenominational Protestant congregations.  Many citizens retain animistic beliefs and practices along with their monotheistic religious affiliation.																																					Section II.													 Status of Government Respect for Religious Freedom												    																																																Legal Framework										The constitution provides for freedom of conscience, religion, and worship, and specifies, “Religious denominations are separated from the State.” It also prohibits discrimination based on religious beliefs and provides for both the right to conscientious objection and freedom to teach any religion. The constitution protects freedom of religion in the event of a declaration of a state of siege or state of emergency.There is no official state religion; however, the constitution commends the Catholic Church for its participation in the country’s liberation efforts. A concordat between the government and the Holy See establishes a legal framework for cooperation, grants the Catholic Church autonomy in establishing and running schools, provides tax benefits, safeguards the Church’s historical and cultural heritage, and acknowledges the right of its foreign missionaries to serve in the country.The law criminalizes religious or racial discrimination. Members of groups organized to incite or encourage discrimination based on race or religion face imprisonment of between four and 12 years. Those who through written or other social communication means spread ideas with the intent to incite racial or religious discrimination or encourage or provoke violence against a person or group of people based on race, color, ethnic origin, or religion may be punished with imprisonment from two to eight years.Religious organizations that conduct religious services but do not engage in other activities do not need to register with the government and may obtain tax-exempt status from the Ministry of Finance. Religious organizations seeking to open private schools or provide other community services must submit articles of association and other relevant documentation to register as nonprofit corporate bodies through the Ministry of Justice’s National Directorate for Registry and Notary Services (DNRN). The law requires a separate registration with the Ministry of Interior for associations with primarily foreign members, including religious organizations, which must submit their articles of incorporation, proof they have the means to carry out their activities, and the name of a designated representative. To receive a tax identification number, organizations must register first with the Ministry of Justice and then bring that registration to the Service for Registration and Verification of Businesses, the business registration agency. The DNRN then issues a certificate and legally charters the organization.The Ministry of Education classifies religious study as an elective subject in public schools. Most schools in the country are public, although the Catholic Church also operates private schools. Non-Catholic students may attend Catholic schools. Religious classes are compulsory in private Catholic schools.A chaplain who is both Catholic and a citizen may serve in the armed forces. The law states, “Foreigners cannot provide religious assistance to the defense and security forces, except in cases of absolute need and urgency.” Foreign citizen missionaries and nonmissionary religious officials are exempt from paying normal residence and visa fees. Visa regulations are the same for all foreign religious workers, regardless of religious affiliation.The country is a party to the International Covenant on Civil and Political Rights.																																				Government Practices										Muslim and Protestant religious minority leaders again reported that notaries public rejected marriage and birth certificates from religious organizations other than the Catholic Church when submitted as supporting documentation required by individuals registering for schools and for other official acts. The leaders stated this occurred on an ad hoc rather than systematic basis, and authorities resolved the incidents by addressing them with the notarial office director.The notary service issued birth certificates to minority religious community members, but not marriage certificates, according to the president of the National Islamic Council. Members of non-Catholic religious groups had the option to marry in a civil ceremony witnessed by a notary public, according to a Ministry of Justice official. Registrations of births and marriages with the government continued to be available, but civil registration rates remained relatively low in comparison to registration for religious certificates. Protestant and Muslim leaders continued to engage the Offices of the President and Prime Minister, as well as parliament, to recognize non-Catholic certificates. In 2020, Minister of Justice Manuel Carceres da Costa presented options to the Council of Ministers to amend the civil code to register all forms of marriages recognized by the law, including those of non-Catholic religious groups. The proposed revisions were pending approval by the Council of Ministers as of year’s end.Muslim religious leaders continued to express concerns regarding discriminatory practices in civil service hiring. They said some Muslim job candidates whose names might be identified with their religion experienced discrimination during the screening process.As part of its annual budget, the Office of the Prime Minister allocated $15 million to the Catholic Episcopal Conference of Timor-Leste for distribution among the country’s three Catholic dioceses. Government and church representatives signed the agreement in May. The terms of the concordat with the Holy See governed the allocations. Direct budget allocations to the Catholic Church again caused some tension with non-Catholic religious groups. According to minority religious leaders, the funding significantly favored the Catholic Church, since non-Catholic religious groups needed to apply for funding from a separate government source instead of receiving a dedicated budget allocation. Catholics and other religious groups, along with other organizations, could apply for part of a separate $3 million government fund set aside for civil society organizations during the year.The Civil Society Support Office under the Prime Minister’s Office implemented several programs disbursed under a two-year (2021-22) grant agreement with ATR-TL for $110,000 to conduct a nondenominational survey of faith-based tourism assets and to promote hospitality and tour guide training for young persons. ATR-TL finalized its strategic plan and established offices in five municipalities. ATR-TL also conducted choir competitions, with participation from all religious groups.The Civil Society Support Office also provided a $200,000 grant to the Muslim community in October to support their religious activities and education. A Protestant church received $45,000 in grant money to build a church in Manufahi, while a separate Protestant church received more than $40,000 to construct a church in Viqueque.National holidays include several Catholic and Islamic holidays. On Eid al-Adha, then President Francisco Guterres Lu Olo offered congratulations to the Muslim community and used the opportunity to encourage the Muslim and other religious communities to work together to promote unity, stating “We are one people and one Timor-Leste.”In May, President Jose Ramos-Horta announced that parliament had adopted the Document on Human Fraternity for World Peace and Living Together as one of its national documents and had added it to the country’s education curriculum. The document is a joint statement signed by Pope Francis and Islamic scholar Sheikh Ahmed al-Tayeb in 2019 to promote peace between Christians and Muslims. In September, President Ramos-Horta, together with Substitute for Secretary of State in the Vatican Archbishop Edgar Pena Parra, inaugurated the Center of Human Fraternity for World Peace and Living Together, in a ceremony at the Presidential Palace.The government continued to consult religious leaders as part of broader engagement with civil society.																																					Section III.													 Status of Societal Respect for Religious Freedom												    																																															Members of minority religious groups, including from the Muslim and Protestant communities, generally reported there was religious tolerance in the country, although some said strong societal pressure for individuals to remain in the Catholic Church persisted.  Some minority religious group leaders stated that some family and community members criticized their members because of their religious beliefs.Leaders of the Catholic Church and Protestant and Muslim communities reported continued positive cooperation and relations among religious groups.  The interfaith group ATR-TL continued working to identify religious tourism sites and to raise awareness of these sites’ religious and historical significance.																																					Section IV.													 U.S. Government Policy and Engagement												    																																															Embassy officials engaged regularly on the subject of religious freedom with government officials, including from the Office of the Prime Minister, addressing concerns such as discrimination in civil service hiring, recognition of religious minority documentation, and budget allocations to different minority groups.  The Chargé d’Affaires and embassy officials met with religious and social leaders, including the Archbishop of Dili and the Imam of Dili.  The embassy used its social media platforms to highlight engagements with the country’s Muslim and Protestant communities.The embassy continued to fund programs to promote religious freedom and the preservation of religious sites.  For example, U.S. government programs continued to support a multiyear public-private partnership to attract investment to maintain Cristo Rei, a famous statue of Jesus located in Dili.  Similar programs also continued to support the registration, capacity building, and launch of ATR-TL.																																				    							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Religious Demography																																																	Section II. Status of Government Respect for Religious Freedom																																							Legal Framework																																																						Government Practices																																																			Section III. Status of Societal Respect for Religious Freedom																																																	Section IV. U.S. Government Policy and Engagement																																																							Tags																					Bureau of East Asian and Pacific Affairs																								Office of International Religious Freedom																																Religious Freedom																															Timor-Leste