Dynamics and deficiencies of anti‐money laundering efforts in Myanmar

Abstract

Reports that the anti‐money laundering regime in Myanmar (Burma) has many flaws; reasons are the lack of internationally accepted money laundering provisions, weak law enforcement capacity, an under‐regulated banking system, and proliferation of drug trafficking activity. Outlines laws and regulations: the 1993 Narcotics Drugs and Psychotropic Substances Law has been the main legislative tool against money laundering until recently and it criminalised money laundering if predicated by drug trafficking, allowing asset seizure if derived from the drugs trade. Moves onto the Control of Money Laundering Law 2002, which extends the extends the range of predicate offences, allows for imprisonment for up ten years, and sets up procedures for reporting of suspicious transactions and financial institution know‐your‐customer standards. Points out, however, that there is no bureaucratic structure to implement these provisions, no Financial Intelligence Unit, and no record of arrests or prosecutions; the ruling military junta simply wants to stay in power and allows or even encourages criminal money laundering, with lax financial accountability, weak border controls, and absence of regional and international cooperation as aggravating factors.