Financial Crime World

Anti-Money Laundering (AML) and Know-Your-Customer (KYC) Compliance in Myanmar

===========================================================

Table of Contents

Introduction

This comprehensive document outlines the requirements and procedures for Anti-Money Laundering (AML) and Know-Your-Customer (KYC) compliance in Myanmar. It covers various aspects to ensure that your business remains compliant while maintaining a secure and trustworthy environment for customers.

Definition of Customer

A customer can be an individual or a business entity that enters into a financial relationship with your company.

Enhanced Due Diligence (EDD)

EDD is required for high-risk customers and situations. This involves conducting more in-depth investigations than the standard due diligence process.

  • High-Risk Customers: These are individuals or entities that pose a higher risk of money laundering or terrorist financing.
  • Enhanced Investigations: EDD involves collecting additional information about the customer, such as their business activities, financial history, and relationships with other entities.

Customer Information

You must collect accurate and up-to-date information about your customers, including identification data, financial information, and other relevant details as may be necessary under Myanmar’s regulations.

  • Identification Data: This includes name, date of birth, address, and nationality.
  • Financial Information: This includes income, employment status, and financial history.
  • Other Relevant Details: This may include business activities, relationships with other entities, and any other information that may be relevant to AML and KYC compliance.

Timing of Verification

Identity verification is not a one-time process but should be repeated in multiple instances as per the requirements of Myanmar’s regulations. It is recommended to verify customer identities during onboarding and when dealing with transaction data above certain monetary thresholds.

  • Onboarding: Verify customer identities when they first open an account or enter into a financial relationship.
  • Transaction Thresholds: Verify customer identities when dealing with transactions that exceed a certain monetary threshold, such as $10,000.

Politically Exposed Persons (PEPs)

You are required to identify if your customers are PEPs, hold a public office, or exhibit a higher risk profile. This involves using AML screening services to check against watchlists of global regulatory authorities and domestic databases.

  • PEPs: These are individuals who hold a public office or have a close family member who holds a public office.
  • Higher Risk Profile: This includes individuals or entities that have been identified as high-risk by regulatory authorities.

Reliance on External Services

Myanmar’s regulations allow you to seek the services of a third party for due diligence measures but require you to collect all necessary data from this third party without undue delay. You remain liable for compliance with AML and KYC obligations despite relying on external services.

  • Third Party Due Diligence: Use a third-party provider to conduct due diligence on your customers.
  • Data Collection: Collect all necessary data from the third-party provider without undue delay.

Record Retention

It is mandatory to retain customer data (AML and KYC information) for not less than five years as part of your due diligence responsibilities, even when processing, collecting, or managing this information through a relevant third party. You must collect all necessary Due Diligence Data from the third party without undue delay.

  • Record Retention Period: Retain customer data for at least five years.
  • Due Diligence Data: Collect all necessary due diligence data from the third-party provider without undue delay.