Financial Crime World

Compliance Training Essential for Non-Financial Professionals in Myanmar’s Microfinance Sector

Recent Directive Highlights Importance of AML/CFT Compliance

The Myanmar Microfinance Business Supervisory Committee has issued Directive No. 4/2022, emphasizing the need for non-financial professionals in microfinance institutions (MFIs) to undergo compliance training on anti-money laundering and combating the financing of terrorism (AML/CFT) measures.

Key Requirements for MFIs

  • Formulate policies and procedures to implement AML/CFT processes
    • Identify and evaluate risks arising from MFI activities
    • Monitor cash transactions
    • Report suspicious activities
    • Maintain records
    • Assign clear responsibilities
  • Classify members as high, medium or low-risk based on personal information, financial behavior, and country of residence
  • Evaluate AML/CFT risks for non-citizen members and clients, and submit suspicious transaction reports to the Myanmar Financial Intelligence Unit (FIU) if necessary

Training Requirements for Non-Financial Professionals

  • Awareness of specific money laundering methods and factors relating to the financing of terrorism
  • Training on AML/CFT policies and standards
  • Risk management techniques
  • Regular updates and training on AML/CFT policies and standards, as well as risk management techniques

Importance of Compliance Training for Non-Financial Professionals

  • Enables identification and reporting of suspicious activities
  • Maintains records and adherence to AML/CFT procedures
  • Contributes to the overall effectiveness of anti-money laundering and combating the financing of terrorism measures in MFIs

Quote

“In light of the new directive, it is essential for non-financial professionals in MFIs to undergo comprehensive training on AML/CFT policies and standards,” said U Khin Maung Htwe, a compliance expert. “This will enable them to identify and report suspicious activities, maintain records, and adhere to AML/CFT procedures, ultimately contributing to the overall effectiveness of anti-money laundering and combating the financing of terrorism measures in MFIs.”

Conclusion

The growth of Myanmar’s microfinance sector highlights the importance of regular training and updates for non-financial professionals on AML/CFT policies and standards, as well as risk management techniques. With comprehensive compliance training, MFIs can ensure adherence to regulatory requirements while maintaining a strong reputation for integrity and transparency.