Enhancing Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Measures in Myanmar Microfinance Institutions
Strengthening the Fight Against Money Laundering and Terrorism Financing
Yangon, Myanmar - The microfinance industry in Myanmar has been directed to implement enhanced Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) measures to strengthen the country’s fight against money laundering and terrorism financing.
Key Requirements for Microfinance Institutions
According to a directive issued by regulatory authorities, microfinance institutions (MFIs) must:
Classify Members as High, Medium or Low Risk
- Classify members based on personal information, financial behavior, and other factors
- Conduct customer due diligence (CDD) and enhanced due diligence (EDD) on high-risk members
Be Aware of Members’ Nature and Purpose of Commercial Operations
- Identify any inconsistencies during the initial communication period
- Verify the level of risk concerning businesses that mainly use cash
- Conduct EDD on members deemed to be at high risk
Continuous Monitoring and Verification
- Continuously obtain information related to high-risk countries through the Compliance Officer
- Verify shareholders from internationally considered high-risk countries
- Fully understand the nature and purpose of activities with members from high-risk countries and perform EDD functions
Consequences for Non-Compliance
MFIs that fail to comply with the provisions of the directive shall be prosecuted, including their members and those who communicated with them, according to:
Microfinance Law
Anti-Money Laundering Provisions Law
Anti-Terrorism Law
Importance of Compliance
By implementing these measures, MFIs can play a vital role in maintaining the integrity of the financial system and protecting the country’s reputation.
Contact Information
For more information or legal advice on AML/CFT regulations in Myanmar, please contact: DFDL Myanmar Email: myanmar@dfdl.com Phone: +95 1 392 555
Note: This article is intended to provide general information only and should not be considered a substitute for legal advice. It is recommended that you consult with qualified legal counsel before taking any action.