Financial Crime World

Here is the rewritten article in Markdown format:

Financial Inclusion in Myanmar: A Roadmap to Address Crime and Poverty

The United Nations Capital Development Fund (UNCDF) and the UN Development Programme (UNDP) have released a comprehensive study on Myanmar’s financial services sector, highlighting the country’s low level of financial inclusion and its impact on crime and poverty.

The State of Financial Inclusion in Myanmar

According to the study, known as Making Access Possible (MAP) Myanmar Diagnostic, only 4% of respondents surveyed had bank savings accounts in their own names. A staggering 39% of households have no access to either regulated or unregulated financial services. This highlights a significant reliance on informal financial services, such as money lenders and friends and family, to borrow money.

Impact of Low Financial Inclusion

  • The lack of formal financial services hampers national savings, with nearly two-thirds of respondents saying they do not save at all.
  • Business costs in Myanmar are high due to the largely cash-based nature of the economy.
  • Regulations and curbs on credit operations weigh down the market.
  • Serious capital constraints across the financial sector limit banks’ ability to extend credit.

Recommendations for Promoting Financial Inclusion

“This research has provided clear indications on where to focus efforts to develop the sector,” said Henri Dommel, Director Inclusive Finance at UNCDF. “Significant effort is required to move Myanmar towards more formal financial services.”

An initial road map framework will be developed based on the research outcomes and feedback from stakeholders. The study’s findings are expected to inform policy and priority-setting for promoting financial inclusion in Myanmar.

Linking Financial Inclusion to Crime and Poverty

Myanmar’s low level of financial inclusion has been linked to high levels of crime, including money laundering and fraud. The lack of access to formal financial services has also led to a reliance on informal lenders, who often charge exorbitant interest rates, perpetuating poverty and inequality.

Government Commitment to Promoting Financial Inclusion

The Myanmar government has committed to promoting financial inclusion as part of its economic reforms. The MAP study is expected to play a key role in informing these efforts.

Conclusion

In conclusion, the MAP Myanmar Diagnostic highlights the need for a comprehensive approach to address financial inclusion and crime in Myanmar. By developing a roadmap framework based on the research outcomes, the UNCDF and UNDP aim to support the Government of Myanmar in promoting financial inclusion and reducing poverty and inequality.