AML/CFT in Myanmar: a review of recent developments

Abstract

Purpose

The purpose of this paper is to examine anti-money laundering and countering the financing of terrorism (AML/CFT) developments in Myanmar in light of its recent political and economic transition from military rule to a civilian, democratic government. This paper will discuss the changes in Myanmar’s AML/CFT frameworks, as well as international blacklisting and sanctions that have targeted Myanmar since the late 1990s. It also highlights issues that are likely to challenge Myanmar’s ability to ensure compliance with international best practices, especially as the local financial sector expands and foreign investment increases.

Design/methodology/approach

This paper draws on available literature and open source reporting.

Findings

This review is a timely update of Myanmar’s progress 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 considerable lack of technical expertise, as well as financial and human resources to ensure compliance and enforcement occur.

Originality/value

Myanmar is a very under-researched area 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.

Citation

Thompson, R. (2018), "AML/CFT in Myanmar: a review of recent developments", Journal of Money Laundering Control, Vol. 21 No. 3, pp. 358-369. https://doi.org/10.1108/JMLC-08-2017-0036