Financial Crime World

Assessment of Myanmar’s Financial Intelligence Unit (MFIU) on Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT)

Myanmar’s Financial Intelligence Unit (MFIU) has undergone an assessment against certain criteria related to anti-money laundering and combating the financing of terrorism (AML/CFT). The assessment highlights both strengths and weaknesses in Myanmar’s AML/CFT framework, with areas for improvement identified.

Stability of the Legal Framework

The MFIU’s legal and institutional framework remains unchanged since the previous assessment. This stability is a positive indicator of Myanmar’s commitment to its AML/CFT obligations.

  • Criterion 29.1: Met
    • The legal and institutional framework remains unchanged.
  • Criterion 29.2: Met
    • Same as Criterion 29.1, the framework is unchanged.
  • Criterion 29.3: Met
    • Framework unchanged again.

Capacity and Resources

While Myanmar’s MFIU has capacity constraints, it has received support from the US Embassy to facilitate operational analysis.

  • Sub-criterion 29.4(a): Partly met
    • Capacity constraints are a concern, but support from the US Embassy is a positive step.
  • Sub-criterion 29.4(b): Mostly met
    • The MFIU completed three strategic analysis reports, but only one showed evidence of value adding and identifying a pattern of predicate offending.

Secure Information Sharing

The MFIU has established a secure web-based database for managing information dissemination, but it’s not a member of the Egmont Group, which limits its ability to share information with foreign counterparts securely.

  • Criterion 29.5: Mostly met
    • A secure web-based database is in place, but membership in the Egmont Group is required for secure international information sharing.

Confidentiality and Security

The MFIU’s legal framework ensures confidentiality and penalties for breaching confidentiality in AML/CFT cases.

  • Sub-criterion 29.6(a): Met
    • Legal framework ensures confidentiality.
  • Sub-criterion 29.6(b): Met
    • Mandatory training on handling sensitive information is provided.
  • Sub-criterion 29.6(c): Mostly met
    • A secure electronic web reporting system is in place, but remote access to the database is not available.

Enforcement and Compliance

Myanmar’s MFIU needs improvement in terms of operational analysis capacity and secure information sharing with foreign counterparts.

  • Criterion 29.7: Partly met
    • Sub-criterion 29.7(a) has been partially addressed in a subsequent section (65), indicating that Section 11 of the AML Law was considered within the Presidential Anti-Money Laundering Order No. 45/2019, specifically at section 4.

Overall, the assessment highlights areas where Myanmar’s MFIU needs improvement to strengthen its AML/CFT framework and ensure effective implementation of international standards.