Myanmar remains on FATF’s High-Risk list as watchdog flags October deadline

Mizzima

The Financial Action Task Force (FATF) on 19 June kept Myanmar on its list of high-risk jurisdictions subject to a call for action, calling for enhanced due diligence rather than countermeasures, and warned that it will consider countermeasures if no further progress is made by October 2026.

Myanmar committed in February 2020 to address strategic deficiencies in its anti-money laundering and counter-terrorism financing (AML/CFT) regime, but its action plan expired in September 2021. In October 2022, citing the continued lack of progress, the FATF decided that further action was necessary and called on its members and other jurisdictions to apply enhanced due diligence measures proportionate to the risk arising from Myanmar.

During the current reporting cycle, Myanmar took steps to improve its AML/CFT regime, including demonstrating enhanced use of financial intelligence in law enforcement investigations, demonstrating investigation of transnational money laundering cases with international cooperation, and demonstrating an increase in the freezing, seizing, and confiscation of criminal proceeds, instrumentalities, and property of equivalent value, according to the FATF.

The FATF said Myanmar should urgently work to further implement its action plan, including by increasing operational analysis and disseminations by its Financial Intelligence Unit (FIU), and by ensuring that money laundering is investigated and prosecuted in line with risks.

The FATF also said fraud and cyber scam activities in Myanmar remain extensive and present significant illicit finance risks, despite steps Myanmar has taken to tackle fraud and cyber scam operations, including the formation of a national committee to combat online fraud and gambling and strengthening regional and international cooperation. The FATF called on Myanmar to take appropriate action to address those risks, and said that in doing so, Myanmar should have due regard for the victims of trafficking by criminal groups.

The FATF said that when applying enhanced due diligence, countries should ensure that flows of funds for humanitarian assistance, legitimate non-profit organisation (NPO) activity, and remittances are neither disrupted nor discouraged, particularly in relation to earthquake relief efforts in Myanmar. The FATF said it recognises the importance of ensuring its recommendations do not adversely and disproportionately affect NPOs or unduly hinder civil society and the delivery of humanitarian assistance, and that it will continue to monitor whether Myanmar’s AML/CFT activities apply undue scrutiny to legitimate financial flows.

Myanmar will remain on the list of countries subject to a call for action until its full action plan is completed, according to the FATF.