Myanmar’s Asset Tracing Investigations and Confiscation Falls Short of Expectations

YANGON, MYANMAR - Myanmar has made significant efforts to combat terrorism financing and proliferation, but a new report reveals that its asset tracing investigations and confiscation mechanisms are not meeting expectations.

Limited Progress in Combating Terrorism Financing

The report highlights that while Myanmar has shown commitment to combating terrorism, its approach to tracing and freezing terrorist assets is limited. Despite having several cases under investigation, no terrorist financing prosecutions or convictions have been initiated under the country’s Counter-Terrorism Law.

Gaps in Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) Framework

The report notes that Myanmar’s AML/CFT framework has several gaps, including:

• Weaknesses in customer due diligence
• Lack of understanding among financial institutions about CFT requirements
• Inadequate supervision by the Central Bank of Myanmar

Supervisory Body Criticized for Ineffective Implementation

The report also criticizes the Central Bank of Myanmar for not effectively implementing AML/CFT controls, particularly with regard to:

• Politically exposed persons (PEPs)
• Correspondent banking
• Wire transfers

Non-Profit Organizations (NPOs) Require Guidance on Terrorism Financing Risks

The report concludes that while some awareness-raising has been conducted among NPOs working in high-risk zones, they require practical guidance on their terrorism financing risks. International NGOs are subject to stronger controls and have good compliance rates with registration and filing obligations.

Wake-Up Call for Myanmar

The report’s findings serve as a wake-up call for Myanmar, which must strengthen its AML/CFT framework and improve its asset tracing investigations and confiscation mechanisms to effectively combat terrorism financing and proliferation.