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Myanmar Microfinance Institute Directive No.4/2022: Compliance with Anti-Money Laundering and Counter-Terrorism Financing Standards

YANGON, MYANMAR - The Myanmar Microfinance Institute has issued Directive No.4/2022 to strengthen its anti-money laundering and counter-terrorism financing (AML/CFT) measures.

Importance of Effective Risk Management Systems

The directive emphasizes the importance of identifying high-risk factors, including:

• Members with a history of criminal activity
• Politically exposed persons
• Those engaged in electronic money transfers

Member Financial Institutions (MFIs) are required to conduct customer due diligence (CDD) and enhanced due diligence (EDD) on high-risk customers.

Compliance Requirements

To ensure compliance, the directive mandates:

Key Requirements

• Implement an information management system that is up-to-date and accurate
• Communicate regularly with Compliance Officers and Senior Management Teams
• Communicate with law enforcement agencies as necessary
• Identify high-risk factors, including criminal activity, PEPs, and electronic money transfers
• Conduct CDD/EDD on high-risk customers
• Establish a risk-based strategy for managing membership acceptance policies
• Monitor sources of risk, including members from high-risk countries
• Maintain controls on money laundering and terrorist financing

Consequences for Non-Compliance

MFIs that fail to comply with the provisions of Directive No.4/2022 may face prosecution under:

• The Microfinance Law
• Anti-Money Laundering Provisions Law
• Anti-Terrorism Law

Contact Information

For more information on this directive or any other legal issues in Myanmar, please contact our team at myanmar@dfdl.com.

Disclaimer

The information provided here is for informational purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.