Due to its inability to adequately handle illicit financial flows, Myanmar was included in the "black list" of high-risk nations maintained by the Financial Action Task Force (FATF).
New Delhi: Due to its inability to adequately handle illicit financial flows, Myanmar was included in the “black list” of high-risk nations maintained by the Financial Action Task Force (FATF).
Following the judgement, T. Raja Kumar, the FATF president, stated that the problems “were initially documented in a report in September 2018; more than four years later, many of those issues remain.”
The country from Southeast Asia now joins Iran and North Korea on the high-risk list, which was created in 2020.
In the most serious cases, the FATF would advise nations to take steps to protect the global financial system from money laundering and terrorism financing by people on the blacklist.
Myanmar already faces a number of harsh sanctions. The military coup in 2021 overthrew the Aung San Suu Kyi-led civilian government; Western nations led by the US have implemented waves of sanctions targeting the coup leaders, linked business entities, and a gang of arms dealers.
The Monetary Authority of Singapore stated last year that none of the banks under its control have “substantial funds” from individuals or businesses in Myanmar. Financial institutions have been put on alert in relation to risks emerging from the situation in Myanmar.
The Myanmar authorities had been hoping that FATF would rule in their favor. Central Bank of Myanmar Governor Than Than Swe said last month that Myanmar made a lot of efforts to get off FATF’s watchlist by conducting risk assessments in banks, on-site inspections, and off-site monitoring.