In February 2020, Myanmar committed to address its strategic shortcomings.
Paris:
Money laundering and terrorism financing watchdog Financial Action Task Force (FATF) has put Myanmar on a “black list” and called on members to increase due diligence for business ties and transactions in Myanmar.
Myanmar has entered the FATF’s list of high-risk jurisdictions, often referred to as the ‘Black List’. The FATF Blacklist, officially designated as High-Risk Jurisdictions Subject to Call for Action, identifies countries with weak anti-money laundering and counter-terrorism funding regulatory frameworks.
In February 2020, Myanmar committed to address its strategic shortcomings. Myanmar’s action plan ended in September 2021.
In June 2022, the FATF strongly urged Myanmar to expedite the completion of its Action Plan by October 2022 or the FATF would convene its members and urged all jurisdictions to increase due diligence for trade relations and transactions with Myanmar.
After the FATF stated that the continued lack of progress and most of its action items have not been addressed even after a year from the action plan deadline, the FATF decided that further action was necessary in line with its procedures. The FATF called on its members and other jurisdictions to implement increased due diligence measures commensurate with the risk arising from Myanmar.
The FATF has advised that while implementing increased due diligence measures, countries should ensure that the flow of funds for humanitarian aid, legitimate NPO activity and remittances is not disrupted.
It said Myanmar should continue to work on implementing its action plan to address these shortcomings, including demonstrating a better understanding of money laundering (ML) risks in key areas, indicating that On-site/offsite inspections are risk-based, and are registered and supervised by hundi operators.
In addition, it urged Myanmar to demonstrate advanced use of financial intelligence in Law Enforcement Agency (LEA) investigations and to enhance operational analysis and dissemination by Financial Intelligence Units (FIUs).
At the same time, the FATF also encouraged Myanmar to ensure that MLs are tested/trial commensurate with risk; Performing investigations of international ML cases with international cooperation; Demonstrate an increase in the freezing/confiscation and confiscation of criminal proceeds, equipment, and/or property of equivalent value; the management of the confiscated property to preserve the value of the confiscated goods until confiscation; and demonstrate the implementation of targeted financial sanctions related to extension funding (PF).
The FATF urged Myanmar to work to fully address its shortcomings and Myanmar will remain on the list of countries until its full action plan is completed.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)