Global money laundering and terrorism financing watchdog Financial Action Task Force (FATF) has put Myanmar on its black list for terrorism and financing crimes alongside Iran and North Korea, and even has called on members state to apply enhanced due diligence to business relation and transactions in Myanmar.
The FATF blacklist, officially designated as High-Risk Jurisdictions subject to a Call for Action, identifies nations with weak anti-money laundering and counter-terrorist funding regulatory frameworks.
In February 2020, Myanmar committed to addressing its strategic deficiencies. Myanmar’s action plan expired in September 2021.
“This is for failing to address a large number of strategic deficiencies in its anti-money laundering and counter terrorist-financing systems. As a result, FATF calls on countries to apply enhanced due diligence to business relations and transactions in relation to Myanmar,” said Raja Kumar, a Singaporean official who took over the FATF presidency on July 1.
When applying enhanced due diligence measures, countries should ensure that flows of funds for humanitarian assistance, legitimate NPO (Non Profit Organization) activity and remittances are not disrupted, FATF advised.
FATF called on its members and other jurisdictions to apply enhanced due diligence measures proportionate to the risk arising from Myanmar. It added that Myanmar should continue to work on implementing its action plan to address these deficiencies, including demonstrating an improved understanding of money laundering risks in key areas.
It also urged Myanmar to demonstrate enhanced use of financial intelligence in law enforcement agency investigations, and increase operational analysis and dissemination by the Financial Intelligence Units.
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