Financial Crime World

Myanmar Makes Significant Progress in Anti-Money Laundering Efforts, FATF Recognizes High-Level Political Commitment

In recent years, Myanmar has made significant strides in democratization and implemented a range of key reforms amidst multiple challenges. As part of this process, the Government of the Republic of the Union of Myanmar has taken on regional and global commitments to combat money laundering and the financing of terrorism.

A History of Progress

Myanmar had previously been included on the Financial Action Task Force’s (FATF) list of “Non-Cooperative Countries and Territories” from 2001 to 2006, and later listed as a “Jurisdiction with strategic AML/CFT deficiencies” that had not made sufficient progress from 2011 to 2016. However, in 2017, Myanmar underwent a mutual evaluation by regional peer countries, which identified areas for improvement in its anti-money laundering (AML) and combating the financing of terrorism (CFT) policies.

FATF Evaluation Methods

As part of this process, FATF’s evaluation methods became more stringent, measuring not only regulatory standards but also implementation effectiveness. The resulting Mutual Evaluation Report (MER) released in 2018 identified 99 action plans to strengthen Myanmar’s AML/CFT compliance.

Myanmar’s Progress

Myanmar has made significant efforts to accomplish these action plans, including:

  • Establishment of an AML/CFT Steering Committee chaired by the Vice President of the Republic of the Union of Myanmar
  • Creation of consolidated inter-agency task forces to conduct joint supervisions
  • Issuance of Presidential Orders followed by specific directives from relevant government agencies

As a result of this progress, Myanmar has managed to accomplish a significant number of action plans identified in the Mutual Evaluation Report, with only eight remaining to be fulfilled. FATF has recognized Myanmar’s high-level political commitment to strengthening its AML/CFT regime and stated that the country has proactively pursued recommended actions to improve technical compliance and effectiveness since completing its Mutual Evaluation Report.

Ongoing Commitment

The Government of the Republic of the Union of Myanmar remains committed to implementing the remaining action plans within the next 15 months and continuing its reform journey as a responsible member of the international community.