Financial Crime World

MYANMAR FINANCIAL REGULATORY BODY TAKES STEPS TO PROMOTE INCLUSION AND SUSTAINABLE GROWTH

Background

In September 2014, the Financial Regulatory Department (FRD) was established in Yangon, Myanmar to reduce poverty among the basic class people and develop their socio-economic conditions. The department’s primary objective is to supervise microfinance institutions in Myanmar and promote financial inclusion.

Functions and Objectives

According to FRD’s policy, its functions include:

  • Regulating and supervising insurance sector development
  • Overseeing state-owned banks
  • Regulating and supervising state lottery business

To achieve these objectives, the department has set up several key initiatives, including:

  • Formation of the “Myanmar Insurance Association” to strengthen public-private partnerships in the industry
  • Promotion of high-performance multipurpose services for state-owned banks
  • Development of insurance and microfinance sectors
  • Implementation of effective monitoring on state lottery enterprises

Initiatives and Projects

FRD has taken several steps to promote financial inclusion, including:

  • Formation of a “State Lottery Business Supervising Committee” to oversee the state lottery business
  • Establishment of a “Management Information System” to share information between financial institutions and regulators
  • Persuading foreign direct investment from multinational corporations
  • Receiving technical assistance from international organizations to strengthen Myanmar’s financial system

Guidelines and Manuals

FRD is working on several guidelines and manuals, including:

  • “Off-site Supervision Guidelines and On-Site Inspection Manual” in line with International Association of Insurance Supervisors (IAIS) core principles for the insurance industry

History

The FRD has a rich history dating back to 1952 when it was first initiated as a state Pawn-Shops management board. Over the years, it has undergone several transformations, including:

  • Being included in newly formed Myanmar Economic Bank
  • Transformation into a different financial institution under the name of Myanmar Small Loans Enterprise
  • Transformation into Myanmar Microfinance Supervisory Enterprise in 2011 to ensure systematic and precise supervision of microfinance business
  • Final transformation into Financial Regulatory Department (FRD) in September 2014 with six divisions in head office and 15 regional branch offices.