9 November 2022

On 21 October 2022, the Financial Action Task Force (“FATF”) announced that Myanmar has been placed on its high-risk jurisdiction list. The FATF is an inter-governmental policymaking body seeking to combat money laundering and the financing of terrorism. FATF members are required to apply enhanced due diligence measures in relation to transactions involving Myanmar due to its high-risk status.

On 23 October 2022, the Central Bank of Myanmar (“CBM”) issued a press release in response to the FATF announcement. The CBM press release notes that out of the 40 recommendations the FATF requires countries to meet, Myanmar currently meets 24. CBM acknowledges that enhanced due diligence in relation to money transferring processes between Myanmar and other countries will be necessary further to Myanmar’s designation as a high-risk jurisdiction but also states that it has prepared an action plan to reverse the designation, which it intends to implement in 2023.