Navigating Know-Your-Customer Rules in Myanmar’s ITC Space
The rapid growth of the Information Technology and Communications (ITC) sector in Myanmar has brought about significant opportunities, but also complex regulatory compliance requirements. In this article, we’ll delve into the key aspects of Know-Your-Customer (KYC) regulations in Myanmar, particularly for Fintech and online banking services.
Permits and Licenses: A Necessary First Step
Before operating in Myanmar’s ITC space, businesses must obtain various permits and licenses depending on their service or product. Some essential licenses include:
- Telecoms business licenses for telecommunications-related services
- Specific permits to operate as Mobile Financial Service Providers (MFSP)
E-Commerce: Electronic Contracts and Online Purchases
Myanmar law recognizes electronic contracts as valid, providing a statutory basis for “click wrap” agreements and online purchases. However, unauthorized activities such as:
- Interception
- Disclosure
- Alteration
- Hacking
are all punishable offenses.
Fintech: Mobile Financial Services and KYC Requirements
Mobile Financial Service Providers (MFSP) require specific permits to operate in Myanmar and must adhere to strict KYC requirements and periodic reportorial obligations. This includes any financial services provided through mobile technologies, which may theoretically include mobile online payments.
Data Privacy: Confidentiality and Protection
While Myanmar has no specific data privacy law, unauthorized activities such as:
- Alteration
- Interception
- Disclosure of data
- Release of viruses
are all considered criminal offenses. Businesses must maintain the confidentiality of user information and business secrets.
Data Location: A Key Consideration for Infrastructure Placement
The location of data or infrastructure should be a key consideration, particularly when on-site inspection is required by regulators. Placing infrastructure locally may trigger further compliance requirements.
By understanding these KYC regulations and complying with them, businesses can mitigate risks and navigate the rapidly evolving ITC landscape in Myanmar.