The Financial Action Task Force (FATF) designated Myanmar as a high-risk jurisdiction with “significant strategic deficiencies” regarding its anti-money laundering (AML), countering the financing of terrorism (CFT), and financing of proliferation prevention efforts.
The intergovernmental organization called on its members to apply enhanced due diligence on business relations and transactions with Myanmar, it said Friday in a press release.
Myanmar, currently embroiled in a civil war escalated by a military coup last year, entered into a strategic plan to improve its AML/CFT deficiencies in February 2020. That plan expired in September 2021. Since then, the FATF determined the country’s plan has seen a “continued lack of progress and the majority of its action items still not addressed after a year.”
“FATF calls on its members and other jurisdictions to apply enhanced due diligence measures proportionate to the risk arising from Myanmar,” the organization said. “When applying enhanced due diligence measures, countries should ensure that flows of funds for humanitarian assistance, legitimate [nonprofit organization] activity, and remittances are not disrupted.”
Myanmar joined Iran and North Korea on what is often referred to as the FATF’s “black list.” Iran and North Korea have not had their status on the list updated since February 2020 because of the Covid-19 pandemic.
The FATF on Friday also added three countries to its “grey list” of jurisdictions placed under increased monitoring: the Democratic Republic of the Congo, Mozambique, and Tanzania. The list currently covers 23 countries and jurisdictions.
Nicaragua and Pakistan were removed from the list for their successful work addressing and resolving strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing, the FATF said. Nicaragua made a political commitment to work with the FATF in February 2020, while Pakistan did the same in June 2018.
Jurisdictions that remain on the list despite having their progress reviewed by the FATF since June include Albania, Barbados, Burkina Faso, Cambodia, Cayman Islands, Haiti, Jamaica, Jordan, Mali, Morocco, Myanmar, Panama, the Philippines, Senegal, South Sudan, Turkey, the United Arab Emirates (UAE), and Uganda.
Malta was removed from the list in June.