Financial Crime World

Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) Directives for Banks in Myanmar

Correspondent Relationships

Banks in Myanmar are required to establish robust anti-money laundering (AML) and combating financing of terrorism (CFT) measures, including clear guidelines on correspondent relationships. Key requirements include:

  • Senior Management Approval: Banks must obtain senior management approval before establishing new correspondent relationships.
  • AML/CFT Responsibilities: Each bank must clearly understand and document the respective AML/CFT responsibilities.

New Products and Business Practices

Banks should implement a risk-based approach to identify, assess, and mitigate potential money laundering or terrorism financing risks associated with:

  • New Products: Banks must evaluate the risks associated with new products before introducing them to the market.
  • Business Practices: Banks should regularly review and update their business practices to ensure they are compliant with AML/CFT regulations.
  • Technologies: Banks must assess the risks associated with emerging technologies, such as digital currencies and mobile payments.

Wire or Electronic Transfers

Banks engaging in cross-border wire or electronic transfers must include accurate originator and recipient information, along with other details, on the transfer. This information should be:

  • Accurate: Banks must ensure that all information is accurate and complete.
  • Available: The information must remain available throughout the payment chain.

If unable to comply with these requirements, banks should not execute the transfer.

Reporting Requirements

Banks are required to report suspicious transactions, including those exceeding certain thresholds or when originator information is incomplete or unavailable. Key reporting requirements include:

  • Thresholds: Banks must report transactions exceeding USD 10,000 for cross-border transfers or 100 million kyats for domestic transfers.
  • Incomplete or Unavailable Information: Banks should report transactions where the originator or beneficiary information is incomplete or unavailable.

Risk-Based Approach

Banks should implement a risk-based approach to identify and mitigate potential AML/CFT risks associated with new products, business practices, and technologies. This includes:

  • Risk Assessment: Regularly assessing the risks associated with new products, business practices, and technologies.
  • Mitigation Measures: Implementing mitigation measures to reduce the risks identified.

Information Sharing

Banks must share accurate originator and beneficiary information on wire or electronic transfers to facilitate tracing and monitoring of transactions. This includes:

  • Accurate Information: Ensuring that all information is accurate and complete.
  • Available Information: The information must remain available throughout the payment chain.

Reporting Requirements

Banks are responsible for reporting suspicious transactions to the Financial Intelligence Unit (FIU) in a timely manner. Key reporting requirements include:

  • Timely Reporting: Banks must report suspicious transactions promptly.
  • Accurate Reporting: Banks should provide accurate and complete information when reporting suspicious transactions.

These directives aim to prevent money laundering and the financing of terrorism by establishing robust AML/CFT measures within the banking sector in Myanmar.