Myanmar will stay on the Financial Action Task Force’s (FATF) checklist of high-risk jurisdictions following its newest assessment on 19 June 2026, as the worldwide watchdog concluded that the nation nonetheless has important weaknesses in its anti-money laundering and counter-terrorist financing framework.
The FATF confirmed that Myanmar continues to be topic to “enhanced due diligence” necessities somewhat than stricter countermeasures. This means monetary establishments should apply further scrutiny to transactions and enterprise relationships linked to the nation whereas monitoring for uncommon or suspicious exercise.
The determination follows Myanmar’s inclusion on the FATF “call for action” checklist in October 2022 after failing to finish key parts of its agreed motion plan, which had expired in September 2021. The company stated most excellent necessities stay unaddressed, regardless of some progress in latest reporting cycles.
Persistent gaps in AML/CFT framework
FATF said that Myanmar nonetheless has structural deficiencies in detecting, investigating and prosecuting cash laundering according to its threat publicity. These gaps embrace restricted use of economic intelligence, weak investigative output and inadequate disruption of illicit monetary networks.
The organisation additionally famous that whereas enhancements have been made, together with stronger use of economic intelligence in regulation enforcement investigations and elevated cooperation with worldwide companions, these steps haven’t but totally closed the compliance hole.
Authorities have additionally elevated the freezing, seizure and confiscation of legal proceeds and associated property. FATF acknowledged this as progress however emphasised that extra work is required to make sure constant enforcement throughout all threat areas.
The company stated Myanmar should “urgently work” to implement its remaining motion plan objects, together with bettering operational evaluation inside its monetary intelligence unit and making certain cash laundering circumstances are investigated and prosecuted according to assessed dangers.
A key concern highlighted by FATF is the continued prevalence of fraud and cyber rip-off operations linked to Myanmar. As reported by Asia Gaming Brief, the organisation said that such actions stay in depth and create substantial illicit finance dangers.
These operations embrace on-line fraud schemes, funding scams and different digital-based monetary crimes that usually cross borders and rely on advanced laundering networks. FATF famous that authorities have taken steps comparable to establishing a nationwide committee to fight on-line fraud and playing, alongside elevated regional and worldwide cooperation.
However, the company stated these measures haven’t but considerably decreased the general scale of the issue.
FATF additionally confused the significance of contemplating victims of trafficking related to legal networks. In its assertion, it stated: “The FATF calls on Myanmar to take appropriate action to address the illicit finance risks associated with fraud and cyber scam threats and will continue to work with Myanmar in this regard. In tackling these illicit finance threats, Myanmar should have due regard for the victims of trafficking by criminal groups.”
Regulatory strain and October 2026 warning
The FATF warned that if Myanmar doesn’t exhibit enough progress by October 2026, it is going to take into account introducing countermeasures. These measures would characterize the next stage of worldwide monetary restriction in contrast with the present enhanced due diligence framework.
At current, Myanmar stays alongside Iran and North Korea on the FATF’s checklist of high-risk jurisdictions topic to a name for motion. No new international locations had been added or eliminated within the newest assessment cycle.
The organisation additionally emphasised that enhanced monitoring shouldn’t intrude with reputable monetary flows, together with humanitarian help, non-profit exercise and remittances. It particularly highlighted the necessity to keep away from disrupting help operations, together with earthquake aid efforts.
Myanmar’s ongoing compliance challenges are intently linked to broader issues about cyber-enabled fraud and cross-border monetary crime within the area. FATF famous that legal teams proceed to adapt shortly, making enforcement harder regardless of elevated coordination efforts.
Authorities have intensified worldwide cooperation and brought steps to dismantle unlawful networks. However, FATF stated illicit rip-off exercise stays widespread and continues to current systemic dangers to monetary integrity.
The company additionally highlighted hyperlinks between cyber fraud operations and human trafficking, the place victims are reportedly compelled into legal exercise inside rip-off compounds. This connection has elevated strain on authorities to handle each monetary and humanitarian elements of enforcement.
Remaining on the FATF high-risk checklist requires banks and monetary establishments globally to use enhanced due diligence to Myanmar-related transactions. This sometimes will increase compliance prices, slows processing occasions and should discourage cross-border monetary exercise.
In some circumstances, monetary establishments might restrict or keep away from publicity to jurisdictions designated as excessive threat on account of regulatory and reputational issues.
Despite these constraints, FATF has maintained that Myanmar will keep on the checklist of jurisdictions topic to a name for motion till it totally completes its motion plan.
