Paris, 24 October 2022 (TDI): Financial Action Task Force (FATF) has put Myanmar on its high-risk jurisdiction list, referred to as Black List along with unchanged Iran and North Korea on Friday.
Money laundering and terrorist financing watchdog FATF’s President T. Raja Kumar quoted that the lack of progress and restoration of the uncompleted financial action plan that expired more than a year after the deadline puts it on the blacklist.
FATF said Myanmar was obliged to address its strategic deficiencies in February 2022. The Myanmar action plan expired in September 2021.
In June earlier this year, FATF strongly urged Myanmar to swiftly complete its action plan and gave a deadline of October 2022. It failed to do so.
FATA mentioned Myanmar failed to fulfill its commitments towards anti-money-laundering and combating terror financing action which makes Myanmar a highly vulnerable country to the international financial system.
During the two days meeting, FATF called on members to apply enhanced due diligence to business relations and transactions as Myanmar didn’t address its majority of action items.
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FATF further decided to take action and called on its members and jurisdictions to apply enhanced due diligence measures proportionate to the risk arising from Myanmar.
FATF further urged it to address its deficient action items while on Black List including demonstrating an improved understanding of Money Laundering in key areas, and demonstrating that on-site/offsite inspections are risk-based.
Moreover, FATF advised Myanmar to demonstrate enhanced use of financial intelligence in Law Enforcement Investigation, and increase operational analysis and distribution by the Financial Intelligence Unit.
FATF further advocated for fully ensuring the investigation of Money Laundering in line with risk, and with international cooperation, it should address and investigate transnational ML cases.
Aside from that, FATF adjured Myanmar to demonstrate enhancement in freezing/seizing and confiscation of criminal proceeds, instrumentalities, and property of equivalent value.
The Asian country must seize the assets to preserve the value of seized goods until confiscation, and ensure the implementation of targeted financial sanctions related to Proliferation Financing, FATF said.
International money-laundering watchdog FATF said that Myanmar will remain on the list of countries identified as high-risk to the international system until it works to fully address its Anti Money-Laundering and Combating Financial Terrorism.
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