Financial Crime World

Myanmar’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Measures: A FATF Assessment Report

Executive Summary

The Financial Action Task Force (FATF) has assessed Myanmar’s compliance with its recommendations on anti-money laundering (AML) and combating the financing of terrorism (CFT), specifically in relation to money value transfer services (MVTS). This report summarizes key points from the assessment.

Licensing Regimes for MVTS

  • Dual Licensing Regime: Myanmar has two complementary licensing regimes for MVTS under the Financial Institutions Law and the Foreign Exchange Management Law.
  • Registration Obligation: The 2016 Financial Institution Law requires companies engaging in non-bank financial institution (NBFI) business, including money services businesses, to apply for a registration certificate.

Prohibitions on Operating Without a Licence

  • Prohibited Activities: Carrying out MVTS without a licence or registration can lead to imprisonment and fines.
  • Relevant Laws: Prohibitions are found in both the Financial Institutions Law and the Foreign Exchange Management Law.

Sanctions for Unregistered MVTS

  • Identification of Unregistered Businesses: Myanmar has taken actions to identify and apply sanctions to unregistered MVTS, including collecting information on such businesses.
  • Awareness-Raising Activities: Conducting awareness-raising activities is also part of the effort to address this issue.

AML/CFT Obligations of MVTS Licensees

  • Establishment of an AML/CFT Unit and Staff: The Remittance Business Regulation sets out the AML/CFT obligations of MVTS licensees, including establishing an AML/CFT unit and staff.
  • Development of an AML/CFT Program: Developing an AML/CFT program is also a requirement for MVTS licensees.
  • Suspicious Transaction Reporting Requirements: Suspicious transaction reporting requirements are another aspect of the AML/CFT obligations.

Reporting Requirements

  • Reporting on Agents or Branch Offices: Licensees are required to report on the list of agents or branch offices once in three months and provide updated lists if asked by the Central Bank and competent authorities overseas.
  • Monitoring Compliance with AML/CFT Rules: Licensees are responsible for monitoring whether their agents or branch offices comply with AML/CFT rules and regulations.

Quarterly Report on ML/TF Risks

  • Preparation of a Quarterly Report: Remittance businesses are required to prepare a quarterly report on money laundering/terrorism financing risks in terms of agents, geographic factors, and means of payment.