Myanmar Country Summary

FATF Status

Myanmar is subject to a FATF call on its members and other jurisdictions to apply enhanced due diligence measures proportionate to the risks arising from the jurisdiction.

Compliance with FATF Recommendations

The latest follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Myanmar was undertaken in 2024. According to that Evaluation, Myanmar was deemed Compliant for 7 and Largely Compliant for 19 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

Myanmar is currently grappling with rampant corruption and a deteriorating governance structure, particularly following the military coup in 2021, which has severely undermined the independence and effectiveness of law enforcement and judicial institutions. The military regime has exploited anti-corruption measures for political purposes, while widespread criminal activities, including human trafficking, drug production, and arms trafficking, have surged, exacerbated by the ongoing conflicts and economic crisis that have left many vulnerable.

The economy and investment climate in Myanmar have significantly deteriorated following the military coup on February 1, 2021, which reversed a decade of economic progress. The military's violent repression of dissent has led to a sharp decline in commercial activity, with real GDP contracting by 9% in FY 2020-21 and an additional 12% in FY 2021-22, although there was a modest recovery of 4% in FY 2022-23. Foreign investment has plummeted as many international companies have suspended operations or exited the market, citing increased risks, regulatory challenges, and the regime's control over key economic sectors, further exacerbated by stringent foreign exchange restrictions and a lack of transparency in regulatory practices.