Financial Crime World

Myanmar Toughens Stance on Anti-Money Laundering with Stricter Guidelines

Yangon, Myanmar - In a bid to combat money laundering and terrorism financing, Myanmar has strengthened its anti-money laundering (AML) legislation.

Strengthened AML Legislation

The country’s AML Law 2014 and AML Rules 2015 have been amended to provide for stricter guidelines and penalties for those found guilty of engaging in such activities. The new regulations define money laundering as any act that involves converting or transferring money and property knowing it is derived from criminal activity, or concealing its true nature.

Extra-Territorial Reach

The legislation also has extra-territorial reach, applying to individuals, legal entities, and organizations conducting business operations outside Myanmar that are involved in money laundering and terrorism financing.

Obligations of Financial Institutions and Designated Non-Financial Businesses and Professions

Financial institutions and designated non-financial businesses and professions such as:

  • Casinos
  • Real estate agencies
  • Lawyers
  • Accountants
  • Company service providers
  • Precious metals and/or precious stone dealers

must establish anti-money laundering and counter-terrorism financing programs, implement internal risk assessment measures, conduct customer due diligence checks, gather information on customers, record data, and report suspicious transactions to the Financial Intelligence Unit (FIU).

Consequences of Non-Compliance

Failure to comply with these obligations can attract penalties of up to MMK 300 million (approximately USD 167,320) and terms of imprisonment for up to 7 years. The FIU is responsible for enforcing the AML regulations and can impose a range of penalties on individuals and organizations found guilty of non-compliance.

Contact Information

The FIU’s contact details are:

  • Address: Kyun Shwe Myaing St, 1000 Acres (near Ingyin Market), Danatheiddi Quarter, Zabuthiri Township, Nay Pyi Taw
  • Phone numbers: +95 673 421 761, +95 673 421 756
  • Fax number: +95 673 421 761

Implications for Businesses

The Myanmar government’s move to strengthen its AML regulations is seen as a significant step in the fight against money laundering and terrorism financing, and is expected to have far–reaching implications for businesses operating in the country.