Myanmar Fails to Make Progress in Compliance Risk Assessment, Raises Concerns over Financial Criminal Activity
Disappointing Turn of Events
Myanmar has made little progress in addressing technical compliance deficiencies identified during its Mutual Evaluation process, leaving experts wondering whether the country is doing enough to combat financial criminal activity.
Minor Strides, but Significant Work Remains
Despite some minor strides, Myanmar was only able to re-rate one recommendation, bringing the total number of compliant recommendations to 7. This means that 18 recommendations are still classified as largely compliant and a concerning 13 remain partially compliant.
Anti-Money Laundering Measures: A Small Silver Lining
The re-rating of Recommendation 14, which assesses the country’s anti-money laundering measures, is a small positive step forward. However, significant work remains to be done to address deficiencies in areas such as:
- Suspicious transaction reporting
- Customer due diligence
- International cooperation
Far-Reaching Consequences
Experts warn that Myanmar’s failure to make meaningful progress in these areas could have far-reaching consequences for the country’s financial system and its ability to combat money laundering and terrorist financing.
Concerns among Regulators and Law Enforcement Agencies
The lack of improvement has sparked concerns among regulators and law enforcement agencies that Myanmar may not be doing enough to prevent the misuse of its financial system. As a result, it is imperative that the government takes immediate action to address these compliance risks and demonstrate its commitment to combating financial criminal activity.
Immediate Action Required
It is crucial that the government prioritizes addressing these compliance risks and takes swift action to ensure the country’s financial system is not exploited for illegal activities. The failure to do so could have severe consequences, not only for Myanmar but also for global efforts to combat financial crime.