Myanmar’s Financial Inclusion Efforts Fall Short as Crime Rates Soar
Despite efforts to improve financial inclusion in Myanmar, the country has made minimal progress in addressing technical compliance deficiencies, leaving it vulnerable to crime and financial exploitation.
Technical Compliance Deficiencies Persist
According to a recent report, Myanmar’s Mutual Evaluation has been re-rated on one key recommendation, with insufficient progress made to address several other critical areas. Recommendation 14, which focuses on customer due diligence and ongoing monitoring of the risk of money laundering and terrorist financing, has seen a slight improvement, moving from Partially Compliant to Largely Compliant. However, this small step forward is overshadowed by the lack of progress in other key areas, including:
- Recommendations 7, 8, 24, and 26: These recommendations have not shown significant improvement, leaving Myanmar vulnerable to financial exploitation.
- Seven Recommendations rated as Compliant: Only a handful of recommendations have been fully addressed, with many more still pending.
Concerns for Financial Stability and Reputation
The lack of progress in addressing technical compliance deficiencies is particularly concerning given the country’s ongoing struggle to address high rates of crime and financial exploitation. Experts warn that the absence of effective measures to prevent money laundering and terrorist financing poses significant risks not only to Myanmar’s financial stability but also to its reputation as a responsible player in the global economy.
The Consequences of Inaction
The failure to improve financial inclusion and combat crime will only serve to exacerbate existing problems, perpetuating cycles of poverty and instability. It is imperative that the government takes swift and decisive action to address the remaining technical compliance deficiencies and make meaningful progress towards achieving greater financial inclusion and stability.
Recommendations for Improvement
To mitigate these risks and protect its citizens, Myanmar must:
- Prioritize financial inclusion: Implement measures to improve access to financial services for all citizens.
- Enhance customer due diligence: Strengthen ongoing monitoring of the risk of money laundering and terrorist financing.
- Address technical compliance deficiencies: Take swift and decisive action to address the remaining recommendations that are still pending.
By taking these steps, Myanmar can build a more secure future for its citizens and demonstrate its commitment to being a responsible player in the global economy.