DIRECTIVE TO SEAL PROPERTY ISSUED IN MYANMAR

In a bid to combat money laundering and terrorist financing, the Central Board of Myanmar has issued a directive to seal properties in certain situations. This directive aims to prevent the misuse of financial systems and institutions for illegal activities.

Reporting Requirements

According to the directive, reporting organizations are required to report any suspicious transactions or activities to the Financial Intelligence Unit (FIU) immediately. The directive also requires reporting organizations to conduct customer due diligence (CDD) on all customers, including:

• Natural persons
• Companies
• Legal arrangements

The CDD process includes obtaining specific information and documents from each customer, such as: + Name + Address + Date of birth + Nationality + Occupation + Contact information

Beneficial Owner Identification

The directive requires reporting organizations to identify and verify the beneficial owner of a legal arrangement at the time of payment.

Suspicious Transactions

If a reporting organization is unable to perform CDD due to difficulties in obtaining the required information or documents, it must consider the transaction as suspicious and submit a report to the FIU.

Property Sealing Procedures

The directive outlines the procedures for sealing properties in the following situations:

• If a person under investigation fails to comply with AML regulations
• If a property has been seized or frozen as part of an investigation
• If a bond is not submitted by a customer seeking to return a seized property
• If a bond is violated

In each case, the reporting organization must notify the relevant authorities and take steps to seal the property until further notice.

Reporting Organizations Required to Comply

The directive applies to all reporting organizations in Myanmar, including:

• Banks
• Financial institutions
• Other entities that provide financial services

These organizations are required to comply with the directive and report any suspicious transactions or activities to the FIU immediately. Failure to comply may result in serious consequences, including fines and penalties.

Central Board Issues Guidelines

The Central Board has issued guidelines for reporting organizations to follow when conducting CDD and reporting suspicious transactions. The guidelines outline the specific information and documents that must be obtained from each customer, as well as the procedures for identifying and verifying beneficial owners.

Reporting organizations are required to comply with these guidelines and submit regular reports to the FIU on their AML/CFT activities.

Conclusion

The directive aims to strengthen Myanmar’s AML/CFT regulations and prevent the misuse of financial systems and institutions for illegal activities. By following these procedures, reporting organizations can help ensure that financial transactions are transparent and legitimate, and that money laundering and terrorist financing are prevented.