Myanmar to be Blacklisted by Global Finance Watchdog Over Financial Crime Prevention Failures
Economic Reputation on the Line as FATF Considers Blacklisting Myanmar
YANGON and TAIPEI, September 7, 2022 - Myanmar is facing a severe blow to its economic reputation as the global finance watchdog, Financial Action Task Force (FATF), is set to blacklist the country for failing to prevent money laundering and terrorist financing.
Background
According to sources from four Western and Asian government officials, FATF members are expected to approve the decision during their meeting in Paris next month. The move comes after Myanmar failed to implement sufficient measures to combat financial crimes, despite repeated warnings from the international community.
Consequences of Blacklisting
The blacklisting could have severe economic implications for Myanmar, which is already struggling with a deepening crisis following its military takeover last year. The country’s economy has been heavily dependent on foreign investment and aid, but the lack of trust in the regime’s ability to prevent financial crime could deter investors and partners from doing business with the country.
- Severe blow to Myanmar’s economic reputation
- Deterrent effect on foreign investment and partnerships
- Isolation from global financial system
International Community Response
The FATF decision is seen as a critical blow to Myanmar’s economic credentials, which were already under scrutiny due to the military junta’s human rights abuses and political repression. The international community has been increasingly critical of the regime’s handling of the crisis, and the blacklisting could further isolate Myanmar from the global financial system.
FATF Meeting in Paris
The FATF’s decision is expected to be made public during its plenary session in Paris next month, which will bring together representatives from more than 30 countries and jurisdictions. The move is likely to have significant implications for Myanmar’s economic future, as it could make it difficult for the country to access international financing and trade opportunities.
Conclusion
Myanmar’s failure to prevent financial crime has severe consequences, including a potential blacklisting by FATF. This decision could further isolate the country from the global economy and undermine its ability to recover from the current crisis.