Myanmar’s Asset Tracing Investigations and Confiscation: A Misaligned Risk Profile

Introduction

Yangon, Myanmar - Experts have expressed concerns that Myanmar’s asset tracing investigations and confiscation measures are not aligned with the country’s risk profile, even for drug-related offenses. This misalignment has significant implications for combating terrorism financing (TF) and proliferation financing (PF).

Prioritization of Counter-Terrorism Investigations

According to a recent report, TF cases in Myanmar are not being prioritized and are only initiated after the conclusion of counter-terrorism investigations. As a result, no TF prosecutions or convictions have been initiated under the country’s CT Law.

Commitment to Combating Terrorism

The report highlights that Myanmar’s authorities have demonstrated commitment to combating terrorism through TF measures by designating the Arakan Rohingya Salvation Army (ARSA) under UNSCR 1373 and issuing a freeze order. However, freezing orders were not well implemented in this case.

Challenges in Implementation

Experts have pointed out several challenges in implementing TF and PF measures:

• Financial Institutions (FIs) have a reasonable understanding of TF and PF sanctions lists, but smaller banks do not have automated monitoring systems for transactions and accounts, leading to delays in transaction monitoring.
• Designated Non-Financial Businesses and Professions (DNFBPs) lack understanding of TF and PF requirements.

National Risk Assessment

The report emphasizes that Myanmar’s draft National Risk Assessment assesses Non-Profit Organizations (NPOs) as a low risk for TF, despite some awareness-raising efforts being conducted. However, NPOs working in high-risk zones require practical guidance on their TF risks.

Legal Basis for Implementing TF Measures

In addition, the report highlights that Myanmar lacks a clear legal basis to implement TF measures in relation to proliferation of Weapons of Mass Destruction (WMD) by the Democratic People’s Republic of Korea (DPRK) and Iran.

Call to Action

The authorities have been urged to take immediate action to address these concerns and ensure that asset tracing investigations and confiscation measures are aligned with the country’s risk profile. Failure to do so could result in further delays in combating TF and PF, allowing these illicit activities to continue unchecked.

Sources:

• [APG] Anti-Money Laundering and Counter-Terrorist Financing Measures in Myanmar (2018)
• [UNSCR] United Nations Security Council Resolutions 1267 and 1373
• [CBM] Central Bank of Myanmar
• [MFIU] Myanmar Financial Intelligence Unit