The International Money Laundering Monitoring Group (FATF) blacklisted Myanmar

On October 22nd, meeting of the Money Laundering Monitoring Group (FATF) in Paris, France, Myanmar was added to the Black List.

As a result of this action, Myanmar has reached the group of blacklists that already includes North Korea and Iran.

The FATF meeting, which was attended by representatives from more than 200 countries, including the World Bank and the Interpol International Police, was held in Paris, France on October 20th and 21st.

T. Raga Kumar, chairman of the group, explained that the Myanmar side was unable to resolve the FATF’s instructions regarding money laundering suspicions, so action was taken.

Central Bank President Daw Than Than Swe said in a banking meeting held in Nay Pyi Taw on the morning of September 19th that Myanmar is working hard to escape from the action of the Financial Action Task Force-FATF.

It is known that the meeting was attended by the Central Bank of Myanmar and the Ministry of Internal Affairs.

Due to becoming FATF Black Listed, Myanmar may face the following information.

1. We may face sanctions from IMF, World Bank and ADB

2. International trade. Help. Investments and cash flows to other countries may be blocked and denied.

3. The trust of the state-owned private financial and financial institutions in the country may be lost by their international counterparts.

4. Export Trade Payment will take longer.

5. International Bank Charges will be higher. Correspondent Bank will become rare.

6. The credit rating of the country will decrease. As a result, Fx inflow will slow down.

The Consequence is:

  • Export companies will have a competitive advantage.
  • USD will be scarce.
  • Import prices will rise.
  • The price will increase.
The Consequence of FATF Blacklist

What is the Financial Action Task Force (FATF)?

The global watchdog on money laundering and terrorist financing is called the FATF.

The FATF was established in July 1989 to not only monitor but also combat money laundering and terrorism.

Now more than 200 countries have made recommendations to prevent financial crime.

What is the FATF Blacklist?

The FATF blacklists countries that do not comply with anti-money laundering practices when a country’s corrupt rulers intervene.

This year (2022), both North Korea and Iran were added to the FATF Blacklist.

What is the FATF Greylist?

Greylist is a watch list.

The countries included in the Greylist are Myanmar, Albania, Barbados Cambodia Jordan, Jamaica Mali Morocco Pakistan Panama Philippines South Sudan Senegal Syria UAE Turkey Uganda Yemen and some other countries.

These countries are initially included in the Greylist and verified before being added to the Blacklist.

Myanmar’s place in the Greylist is now in the Blacklist.

FATF’s List on October 22

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