Financial Crime World

MYANMAR’S CENTRAL BANK STRENGTHENS AML/CFT COMPLIANCE FRAMEWORK

The Central Bank of Myanmar has issued a series of regulatory guidelines and instructions to ensure compliance with its Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) program. This move aims to prevent the financial system from being used for criminal activities and protect the country’s economy from the risks associated with money laundering and terrorist financing.

History of Guidelines

Since 2004, the Central Bank has issued a range of instructions covering topics such as:

  • Customer Due Diligence (CDD): Banks and financial institutions must perform CDD on customers.
  • Record Keeping: Accurate records must be maintained.
  • Suspicious Transaction Reporting (STR): Banks must report any suspicious transactions.
  • Cash Transaction Reporting (CTR): Cash transaction reports are also required.

Latest Guidelines

The latest guidelines, issued in 2009, include:

  • Additional Identification Documents: Banks must obtain additional identification documents from customers.
  • Customer Information Updates: Customer information must be updated at least once a year.
  • Prohibition of Shell Banks: Banks are prohibited from establishing business relationships or dealing with shell banks.

International Recognition

The Central Bank’s efforts have been welcomed by the international community, which has praised Myanmar for its commitment to combating money laundering and terrorist financing. The country is currently working towards implementing FATF recommendations and strengthening its AML/CFT regime.

Conclusion

The Central Bank of Myanmar’s efforts to strengthen its AML/CFT compliance framework demonstrate the country’s commitment to preventing the misuse of its financial system for criminal activities. The guidelines provide a robust framework for banks and financial institutions to comply with AML/CFT regulations, ensuring the integrity of the financial sector and protecting the country’s economy from the risks associated with money laundering and terrorist financing.