Financial Crime World

Here is the article in markdown format:

Myanmar’s Compliance with FATF Recommendations on Money or Value Transfer Services (MVTS)

===========================================================

Myanmar has been working towards complying with the Financial Action Task Force (FATF) recommendations regarding Money or Value Transfer Services (MVTS). In this article, we will focus on Criterion 14: Licensing and Registration.

Criterion 14: Licensing and Registration

14.1: Licensing Regime

Myanmar has a comprehensive licensing regime for MVTS under the Financial Institutions Law and the Foreign Exchange Management Law. The two regimes are complementary and ensure that all MVTS providers are registered and licensed to operate in the country.

14.2: Sanctions for Unlicensed or Unregistered MVTS

Sanctions for carrying out MVTS without a license or registration can be found in both laws, with penalties ranging from imprisonment to fines. This demonstrates Myanmar’s commitment to preventing unlicensed or unregistered MVTS providers from operating in the country.

14.3: Anti-Money Laundering (AML)/Combating the Financing of Terrorism (CFT) Obligations

The Remittance Business Regulation sets out the AML/CFT obligations of MVTS licensees, including:

  • Establishment of an AML/CFT unit and staff: Licensees must have a dedicated AML/CFT team to oversee their compliance with AML/CFT rules.
  • Development of an AML/CFT program: Licensees must develop an AML/CFT program that outlines their policies, procedures, and controls for preventing money laundering and terrorist financing.
  • Suspicious transaction reporting requirements: Licensees must report any suspicious transactions to the relevant authorities.

14.4: Supervision and Monitoring

The Remittance Business Regulation requires licensees to:

  • Report on agents or branch offices regularly: Licensees must submit regular reports on their agents or branch offices to ensure they are complying with AML/CFT rules and regulations.
  • Monitor compliance: Licensees must monitor whether their agents or branch offices are complying with AML/CFT rules and regulations.

Overall, Myanmar’s compliance with Criterion 14 is considered mostly met, with some areas for improvement related to the proportionality of sanctions and the coverage of domestic MVTS providers.