Myanmar Banking Sector Under Scrutiny: New Regulations to Come
Strengthening Banking Operations and Enhancing Transparency
YANGON, MYANMAR - In a bid to strengthen banking operations and enhance transparency in the sector, Myanmar’s financial regulators are set to introduce new regulations aimed at improving bank transactions.
New Guidelines on Securities Trading and Settlement
The Myanmar Central Bank has issued new guidelines on securities trading and settlement, which will come into effect on July 1, 2024. The new regulations are expected to bring significant changes to the way banks operate in Myanmar.
Key Amendments
- Relaxation of pre-funding requirement for foreign institutional investors (FIIs)
- FIIs no longer required to have 100% cash in their securities trading accounts before placing orders
- Can enter into agreements with local securities companies to settle transactions on a later date
- Introduction of new rules on customer due diligence for financial institutions
- All banks and financial institutions required to classify account holders suspected of engaging in or facilitating technological crimes as “high-risk persons”
Boosting Foreign Investment
The move is expected to boost foreign investment in Myanmar’s stock market and attract more international investors. However, the Central Bank has also emphasized that it reserves the right to temporarily reinstate the 100% pre-funding requirement if necessary to stabilize the securities market.
Improving Transparency and Stability
The new regulations are part of efforts by Myanmar’s authorities to improve the country’s financial sector and bring it in line with international standards. The Law on Credit Institutions, which will also come into effect on July 1, is expected to further enhance transparency and stability in the banking sector.
Industry Expert Insights
Industry experts have welcomed the changes, saying they will help attract more foreign investment and boost confidence in Myanmar’s financial markets.
“We expect these new regulations to bring significant benefits to the country’s financial sector,” said [Name], Partner and Director at Tilleke & Gibbins. “They will help to improve transparency, stability, and investor confidence, making it easier for international investors to do business in Myanmar.”
Contact Information
For more information on these new regulations or any aspect of financial regulations in Myanmar, please contact Tilleke & Gibbins at [email address].