Myanmar Tightens the Screws on Money Laundering and Terrorist Financing

Strengthening Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Framework

YANGON, MYANMAR - In a bid to prevent illicit financial activities, Myanmar’s Central Bank has issued a slew of regulations and guidelines aimed at strengthening its AML/CFT framework.

The Role of the Central Bank in Implementing AML/CFT Program

The Central Bank of Myanmar plays a crucial role in implementing the country’s national AML/CFT program. The bank ensures that the financial system is not compromised by criminal activities associated with money laundering. To this end, the bank has issued regulatory guidelines and instructions to enforce the Control of Money Laundering Law (CMLL), enacted in 2002.

Key Areas Covered by Regulations

The regulations cover a range of key areas, including:

• Customer Due Diligence (CDD): Banks and financial institutions must verify customers’ identities through various documents such as household registration cards, employee cards, and driving licenses.
• Record Keeping: Financial institutions are required to maintain records for at least five years.
• Suspicious Transaction Reports (STRs): Institutions must report transactions exceeding 100 million Kyats or those that appear suspicious.
• Currency Transaction Reports (CTRs): Banks and financial institutions are required to report currency transactions.

Enhancing Transparency and Accountability

To enhance transparency, the Central Bank has introduced a checklist to help banks identify STRs. Financial institutions are also required to address weaknesses found during on-site examinations and submit reports to the Central Bank of Myanmar (CBM) and the Central Committee for Anti-Money Laundering (CCB).

Regulations Apply to Other Sectors

The regulations also apply to other sectors, including:

• Securities: The Myanmar Securities Exchange Centre is required to report unusual or suspicious transactions with respect to purchase and sales of securities.
• Insurance
• Small Loan Enterprises

Implementation and Impact

With the implementation of these guidelines, Myanmar aims to strengthen its AML/CFT framework, prevent illicit financial activities, and ensure that its financial system remains stable and secure.