
Knowledge Highlights 3 November 2023
On 20 April 2022, the Central Bank of Myanmar (“CBM”) issued Letter No. FE-1/69 (“CBM Letter”) announcing exemptions to the protocols set out in Notification No. 12/2022 (“Notification No. 12”) which was issued on 3 April 2022. Notification No. 12 provides that foreign currency earned by Myanmar residents must be deposited in banks with an authorised dealer licence (“AD banks”) and converted into Myanmar Kyats within one working day.
Notification No. 12 was one of several instructions issued by CBM in April 2022 relating to the handling of foreign currency. Our articles titled “Central Bank of Myanmar requires foreign currency to be converted into Myanmar Kyat” and “Central Bank of Myanmar clarifies obligations relating to foreign currency conversion” provide more information on Notification No. 12 and other relevant CBM issuances.
This Alert sets out the key information set out in the CBM Letter.
Exemption from foreign currency conversion requirement
The CBM Letter provides that the following are exempt from compliance with Notification No. 12:
Prior to conducting foreign currency transactions for those listed above, AD banks must obtain documentation proving that these businesses, entities and individuals fall within the exemption allowed by the CBM Letter. The AD banks are also required in this regard to carry out foreign currency transactions for those with exempted status only after completion of Know Your Customer (KYC) and Customer Due Diligence (CDD) processes.