AML/CFT in Myanmar: a review of recent developments
| DOI | https://doi.org/10.1108/JMLC-08-2017-0036 |
| Pages | 358-369 |
| Date | 02 July 2018 |
| Published date | 02 July 2018 |
| Author | Rhys Thompson |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
AML/CFT in Myanmar: a review
of recent developments
Rhys Thompson
Independent Researcher, Yangon, Myanmar
Abstract
Purpose –The purpose of this paperis to examine anti-money laundering and countering the financingof
terrorism (AML/CFT) developmentsin Myanmar in light of its recent political and economic transition from
military rule to a civilian, democraticgovernment. This paper will discuss the changes in Myanmar’sAML/
CFT frameworks, as well as internationalblacklisting and sanctions that have targeted Myanmar since the
late 1990s. It also highlightsissues that are likely to challenge Myanmar’s abilityto ensure compliance with
internationalbest practices, especially as the local financial sector expandsand foreign investment increases.
Design/methodology/approach –This paper drawson available literature and open source reporting.
Findings –This review is a timely update of Myanmar’sprogress with its AML/CFT frameworks at a time
that it is trying to encourage foreign investment and engagement and international businesses. But while
Myanmar’s“opening”is seen by many as an opportunity, it still presents significant AML/CFT risks for
investors because of a considerablelack of technical expertise, as well as financial and human resources to
ensure complianceand enforcement occur.
Originality/value –Myanmar is a very under-researchedarea and has had minimal focus on its AML/
CFT frameworks or the risks present in the economy. This paper will be a useful source for researchers,
academics, policymakers, lawyers and private sector actors seeking to engage or invest in Myanmar’s
economy.
Keywords Money laundering, FATF, Myanmar, Anti-money laundering, Burma
Paper type General review
In 2010, Myanmar held its first general elections since 1960[1]. After taking office in 2011,
the new administration embarked on an ambitious political and economic reform, opening
new sectors to foreign investment and introducing a new foreign investment law. This
attracted many international companies and foreign investment, creating a perception that
Myanmar was finally “open for business”. But despitepositive reforms, and the opposition
National League for Democracy’s (NLD) subsequent landslide election win in 2015,
Myanmar remains a high AML risk.
Myanmar does not have a strong track record with anti-money laundering and
countering the financing of terrorism(AML/CFT) frameworks and is still a major source of
narcotic production and trafficking, traditionally involving heroin but increasingly
involving amphetamine-type stimulants (ATS) [United Nations Office of Drugs and Crime
(UNODC), 2015]. Myanmar has an underdeveloped economy, a nascent financial sector and
widespread use of unregulated remittance systems, known locally as “hundi”. In 2014,
Myanmar introduced a new AML/CTF framework in an attempt to improve its financial
systems and comply with the Financial Action Task Force’s (FATF) AML/CFT
Recommendations[2],but this is yet to be formally evaluated.
Since Myanmar’s political transition began in 2011, Myanmar-specific scholarship has
increased significantly(Selth, 2015). But there remains little focus on Myanmar’sAML/CFT-
related issues, despite the increased foreign investment and the legal and regulatory
changes that have occurred. This paper contributes to this area by providing an update on
JMLC
21,3
358
Journalof Money Laundering
Control
Vol.21 No. 3, 2018
pp. 358-369
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-08-2017-0036
The current issue and full text archive of this journal is available on Emerald Insight at:
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