Myanmar’s Banking Regulations and Compliance Remain a Concern as Progress Slows

Despite efforts to address technical compliance deficiencies, Myanmar’s banking sector has made minimal progress in recent times, leaving regulators and financial institutions concerned about the country’s ability to meet international standards.

Lack of Progress on Key Recommendations

According to a recent assessment, the country has failed to make sufficient headway on several key recommendations. One notable exception is Recommendation 14, which has been upgraded from Partially Compliant to Largely Compliant. However, this glimmer of progress was not enough to offset the lack of progress made on four other recommendations, including:

• Recommendation 7
• Recommendation 8
• Recommendation 24
• Recommendation 26

Current State of Banking Sector Compliance

Currently, Myanmar’s banking sector is rated as being Compliant with just seven out of 37 recommendations. Additionally,

• 18 are deemed Largely Compliant
• 13 remain only Partially Compliant

This leaves significant work to be done before the country can boast a robust regulatory environment.

Concerns about Effectiveness and International Standards

The slow progress has raised concerns about the effectiveness of Myanmar’s banking regulations and the ability of financial institutions to meet international standards for anti-money laundering and combating the financing of terrorism. It is essential that the country redoubles its efforts to address these deficiencies and ensure the stability and integrity of its financial system.

In conclusion, it is crucial for Myanmar to accelerate progress in addressing technical compliance deficiencies to meet international standards and maintain a stable and robust banking sector.