FATF delays Myanmar countermeasures decision for third time as scam operations persist

Mizzima

The Financial Action Task Force (FATF) has pushed back for the third time this year its deadline for deciding whether to impose countermeasures on Myanmar. Following its 28-30 October plenary in Paris, the watchdog gave the military regime in Naypyidaw until February 2027 to show progress, even as it warned that fraud and cyber scam operations in the country continue unchecked.

According to the FATF statement issued on 30 October, the Paris-based body noted limited progress in the five years since Myanmar’s action plan expired in September 2021. It said fraud and cyber scam activities in the country “remain extensive and present significant illicit finance risks.”

The FATF continues to call on its members to apply enhanced due diligence to Myanmar-related transactions, stopping short of the countermeasures it applies to Iran and North Korea.

The decision continues a pattern of shifting deadlines. In February, the FATF said it would consider countermeasures if Myanmar made no further progress by June. In June, it set October as the new checkpoint. Its latest statement moves that date to February 2027.

Myanmar committed to address its anti-money laundering deficiencies in February 2020. The FATF placed the country on its blacklist of “high-risk jurisdictions subject to a call for action” in October 2022, more than a year after the military seized power in a February 2021 coup. Iran and North Korea are the only other countries on the list. Banks worldwide are required to apply extra scrutiny to transactions linked to blacklisted countries.

The FATF acknowledged some steps by the regime, including plans for a national anti-online scams centre and stronger regional cooperation. However, a separate FATF report published on 5 November estimated that about 120,000 people are forced to carry out online scams in Myanmar alone.

The regime has sought to show action against scam compounds along the Thai border. State-run media reported on 4 November that eight of 63 buildings marked for demolition in Shwe Kokko, a scam hub in Myawaddy Township, Karen State, had been brought down, leaving 55 standing.

Myanmar’s Ministry of Information said in August that the country had addressed 13 of the 15 items in its FATF action plan. A delegation led by Central Bank Governor Khin Naing Oo attended the October plenary, according to Eleven Media. Neither source identified the two outstanding items.

The FATF also repeated that enhanced scrutiny must not disrupt humanitarian aid, the work of non-profit organisations or remittances to Myanmar.