Financial Crime World

Myanmar Moves to Strengthen Digital Currency Compliance

Yangon, Myanmar - A Step Towards a Digital Economy

In a bid to support the country’s shift towards a digital economy, the Central Bank of Myanmar (CBM) has issued new guidelines for digital currency compliance. The move aims to enhance the efficiency and security of digital transactions nationwide.

New Guidelines Issued by CBM

According to a letter issued by the CBM on June 12, 2024, banks and mobile financial services providers are now required to use the CBM-NET System for all digital payments and transactions. This includes:

  • Real-Time Gross Settlement (RTGS) system: For large payments
  • Automated Clearing House (ACH) system: For small payments
  • Digital Payment Switch: For QR-based transactions

Revised Transaction Limits

The new guidelines introduce revised transaction limits for various types of digital transactions, including:

Person-to-Person (P2P) Payments

  • Limited to 1 million Kyats per transaction
  • Maximum daily limit of 5 million Kyats

Person-to-Merchant (P2M) Payments

  • Maximum daily transaction amount of 10 million Kyats

Mobile Money Accounts

  • Maximum balance limit of 10 million Kyats
  • Excess funds to be transferred daily to a linked bank account

Large Payments

  • 10 million Kyats or more transactions must use the CBM-NET System B2B Function

Emphasis on Verification and Compliance

The guidelines also emphasize the importance of systematic verification and compliance, including measures to prevent misuse of consumer wallets for merchant transactions. Banks and mobile financial services providers are required to:

  • Scrutinize merchant registration information
  • Verify their legitimacy
  • Follow Know Your Customer (KYC) and Customer Due Diligence (CDD) procedures

Non-Compliance Will Result in Administrative Actions

Non-compliance with the new regulations will result in administrative actions under Section 154 of the Financial Institutions Law.

Industry Experts Warn of Importance of Adherence

Industry experts warn that adherence to these guidelines is crucial for maintaining operational efficiency, avoiding administrative penalties, and supporting Myanmar’s transition to a digital economy.