What's Happening?
The Financial Action Task Force (FATF) has placed Myanmar on its high-risk jurisdiction list due to significant concerns over illicit finance activities, including money laundering, terrorist financing, online scams, and cyber-enabled fraud. Despite these
concerns, Myanmar has made notable progress by completing 13 out of 15 action items under the FATF Action Plan since October 2022. The country has established a national committee to combat online fraud and has strengthened regional and international cooperation. Additionally, Myanmar has prohibited cryptocurrencies as legal tender since 2020 and claims that no evidence has been found of cryptocurrency proceeds from online scams entering its regulated financial system.
Why It's Important?
The inclusion of Myanmar on the FATF's high-risk list highlights ongoing challenges in combating financial crimes that have broader implications for regional and global security. This designation can affect Myanmar's international financial relations and its ability to attract foreign investment. The country's efforts to address these issues, such as forming a Central Supervisory Committee for the Prevention and Suppression of Online Scams and drafting new legislation, are crucial steps towards improving its financial integrity. However, the continued presence on the high-risk list may deter international businesses and financial institutions from engaging with Myanmar, potentially impacting its economic growth and development.
What's Next?
Myanmar remains committed to implementing the remaining action items under the FATF Action Plan and has called for continued international technical assistance, information sharing, and capacity-building to address transnational organized crime. The country is also preparing to establish a National Anti-Scam Centre and enact a new Anti-Online Scam Law. These efforts aim to enhance Myanmar's regulatory framework and improve its standing with the FATF. The international community will likely monitor Myanmar's progress closely, and further assessments by the FATF will determine whether Myanmar can be removed from the high-risk list in the future.
