Banking Regulator Cracks Down on Money Laundering and Terrorist Financing
New Measures to Combat Financial Crimes
The banking regulator has introduced new measures to combat money laundering and terrorist financing in the country. As part of a broader effort to strengthen anti-money laundering (AML) and combating the financing of terrorism (CFT) measures, banks are now required to report suspicious transactions immediately.
Reporting Suspicious Transactions
Under the new rules, banks will be required to submit reports to the Financial Intelligence Unit (FIU) for any transaction exceeding USD 10,000 or 100 million kyats. This regulation also applies to domestic wire transfers that are incomplete or unavailable. Banks must submit these reports within three business days of receiving a request from the beneficiary bank or the FIU.
Strengthening AML/CFT Measures
The new regulations require banks to implement risk-based preventative procedures for determining when to execute, reject, or suspend transactions lacking required originator or beneficiary information. Additionally, banks will need to:
- Verify the identity of beneficiaries if their identity has not been previously verified
- Maintain this information in accordance with record-keeping requirements
Stricter Rules on Correspondent Banking Relationships
Banks are now required to gather sufficient information about respondent banks, evaluate anti-money laundering and combating the financing of terrorism controls measures implemented by respondent banks, and obtain approval from senior management before establishing new correspondent relationships.
Enhanced Cross-Border Wire or Electronic Transfers
The new regulations require banks to include accurate originator and recipient information on wire or electronic transfers and ensure that this information remains with the transfer throughout the payment chain. This measure is aimed at preventing shell banks and high-risk third parties from operating in the country.
Reviewing High-Risk Customer Relationships
Banks are required to review any customer relationships introduced by third parties identified as high risk and terminate such relationships if necessary.
Consequences of Non-Compliance
The regulator has warned that failure to comply with these new regulations could result in severe consequences, including fines and even license revocation. “We take money laundering and terrorist financing very seriously,” said a spokesperson for the regulator. “These new measures are designed to strengthen our defenses against these threats and protect the integrity of our financial system.”
Effective Date
The new regulations come into effect immediately, and banks must comply with these requirements starting from [insert date].