Myanmar will remain on the Financial Action Task Force’s (FATF) high-risk jurisdictions list, commonly referred to as the ‘black list,’ after the agency said on June 19th that the country still has strategic deficiencies in its anti-money laundering and countering the financing of terrorism (AML/CFT) regime and must remain subject to enhanced due diligence measures.
The FATF said Myanmar has been subject to a call for action since October 2022, after its action plan expired in September 2021 and the country failed to address most of its outstanding items within the required timeframe. The agency said financial institutions should increase the degree and nature of monitoring of business relationships linked to Myanmar to determine whether transactions or activities appear unusual or suspicious.
The FATF warned that if Myanmar does not make further progress by October 2026, it will consider countermeasures. At present, Myanmar is subject to enhanced due diligence, rather than the stronger countermeasures applied to Iran and the Democratic People’s Republic of Korea.
During the latest reporting cycle, the FATF said Myanmar had taken some steps to improve its AML/CFT framework, including showing greater use of financial intelligence in law enforcement investigations, investigating transnational money laundering cases with international cooperation, and increasing the freezing, seizing and confiscation of criminal proceeds, assets and property of equivalent value.
However, the FATF said Myanmar must ‘urgently work’ to further implement its action plan. Remaining requirements include increasing operational analysis and dissemination by the financial intelligence unit and ensuring that money laundering is investigated and prosecuted in line with the country’s risks.
The FATF also highlighted continuing concerns over illegal finance linked to fraud and cyber scam activities. It said ‘fraud and cyber scam activities in Myanmar remain extensive and present significant illicit finance risks,’ despite measures including the formation of a national committee to combat online fraud and gambling and efforts to strengthen regional and international cooperation.
The agency called on Myanmar to address the illicit finance risks associated with fraud and cyber scam threats, while also taking account of victims of trafficking by criminal groups.
The FATF also said that enhanced due diligence measures should not disrupt or discourage humanitarian assistance, legitimate non-profit activity or remittances. It specifically noted the importance of ensuring that earthquake relief efforts and civil society activity in Myanmar are not unduly hindered.
Myanmar will remain on the FATF list until its full action plan is completed.
