Myanmar named one of three nations still included in FATF “black list”

One of the three nations that remains on the Financial Action Task Force’s (FATF) “black list” after the group’s most recent plenary meeting in Paris is Myanmar, a well-known center for illegal gambling and other activities in the Golden Triangle area.

The term “black list” designates countries whose frameworks for preventing money laundering, financing of terrorism, and proliferation have serious strategic weaknesses. As a consequence, in order to safeguard the global financial system, member nations must implement stricter due diligence policies, with the possibility to use countermeasures in dire situations.

North Korea, Iran, and Myanmar are still on the list; however, the FATF said that the review process for these nations has been postponed since February 2020 since the FATF has already required remedies from them.

The FATF said that although Myanmar pledged in February 2020 to address its strategic deficiencies, the country’s action plan expired in September 2021. In October 2020, the FATF determined that further action was necessary due to the lack of significant progress and the majority of action items not being addressed even after the deadline. The FATF encouraged members and other jurisdictions to implement enhanced due diligence measures commensurate with the risk posed by Myanmar.

According to the FATF, overall improvement is modest, despite Myanmar’s attempts in October 2023 to prioritize inspections of certain designated non-financial businesses and professions (DNFBP) sectors based on risk.

The FATF emphasized in a statement after the plenary meeting how important it is for Myanmar to keep carrying out its action plan to fully resolve these deficiencies.

The following are important areas that need to be improved: showcasing a deeper comprehension of the risks associated with money laundering; guaranteeing the registration and oversight of hundi operators; enhancing the application of financial intelligence in law enforcement investigations; and expanding the financial intelligence unit’s operational analysis and dissemination.

To prevent undue scrutiny of legitimate financial flows, the FATF advised Myanmar to fully address its deficiencies in counterterrorism financing and anti-money laundering (AML/CFT) as well as to set up a thorough monitoring and supervision system for services involving money transfers or value transfers.

The FATF states that until Myanmar completes its comprehensive action plan, it will remain on the list of countries that may be subject to a call to action.

Original story by: IAG