Myanmar

Last updated on: 21/10/2008

CENTRAL AUTHORITY FOR REPORTING

The Myanmar Financial Intelligence Unit (MFIU) has been established to refer cases of suspected money laundering to the Central Control Board (CCB) Investigation Body for action. In addition, the Myanmar Police Force (MPF), CCB Investigation Body, Central Committee of Drug Abuse Control (CCDAC) and the Bureau of Special Investigation (BSI) have the power and resources to investigate and prosecute cases of suspected money laundering. However, the ultimate decision regarding money laundering matters still lies with the CCB Investigation Body.

ARE LAWYERS COVERED BY ANTI-MONEY LAUNDERING LEGISLATION?

Myanmar has taken steps in meeting STR (Suspicious Transaction Report) requirements for some Designated Non-Financial Businesses and Professions (DNFBPs) such as precious stones and metal dealers, lawyers and accountants. But, there have been no STR reports which have been submitted so far by the DNFBPs. [1] Lawyers are classified as DNFBPs.

NAME THE LAWS REGARDING ANTI-MONEY LAUNDERING PROCEDURES

Money laundering was first regulated in 1993 under the Narcotics Drugs and Psychotropic Substances Law. Under this Law, money laundering was linked to the proceeds of drug offences only. However, in 2002, the Control of Money Laundering Law (CMLL) extended the offence of money laundering to cover other predicate offences. [2]

The AML legislation includes:

Control of Money Laundering Law, 2002;
Narcotics Drugs and Psychotropic Substances Law, 1993;
The Central Bank of Myanmar Law, 1990;
The Foreign Exchange Regulation Act, 1947;
The Money Lenders Act, 1945;
The Bankers’ Books Act. 1891.

At present, Myanmar has not enacted any legislation specifically criminalising terrorist financing nor designating it as one of the predicate offences to money laundering. This is in conflict with the Terrorist Financing Convention. [3]

IN ADDITION TO THESE LAWS, IS THERE ANY MONEY LAUNDERING GUIDANCE FOR LAWYERS CURRENTLY IN PLACE?

No Information available.

UNDER WHAT CIRCUMSTANCES IS A LAWYER UNDER THE OBLIGATION TO REPORT

Lawyers are under no duty to report suspicious transactions.

LAWYER RESPONSIBILITY/LIABILITY

Not applicable.

CLIENTS IDENTIFICATION AND VERIFICATION

The current Customer Due Diligence, record keeping and sanctions requirements under the CMLL and the Control of Money Laundering Rules (CMLR) do not apply to Designated Non-Financial Businesses and Professions (DNFBPs) (lawyers are classified as DNFBPs) . [4]

LAWYERS PROSECUTED FOR MONEY LAUNDERING OFFENCES

No information available.

ADDITIONAL INFORMATION

“The provisions of the CMLL are not fully consistent with international conventions and standards, in respect of its scope pertaining to the definition of money laundering, property, list of predicate crimes and legal persons. There has been only one conviction under the CMLL despite 23 money laundering investigations since 2004 and 54 individual predicate crime convictions in the last two years from 16 money laundering investigations.” [5]

Myanmar has been recently removed from the FATF non-cooperative countries and territories list.

INFORMATION SUPPLIED BY:

Mr. Maung Maung Win
Advocate
IBA Fellowship in International Legal Practice

Website: www.win-lawfirm.com
Email: ipmyanmar@gmail.com / suwin@yangon.net.mm

SOURCES:

[1] Asia Pacific Group on Money Laundering, “APG Mutual Evaluation Report on Myanmar”, 10 July 2008, http://www.apgml.org/documents/docs/17/Myanmar%202008.pdf.

[2] Trond Vagen, “Report highlights large gaps in Myanmar AML Regime”, August 20, 2008, www.complinet.com.

[3] Trond Vagen, “Report highlights large gaps in Myanmar AML Regime”, August 20, 2008, www.complinet.com.

[4] Asia Pacific Group on Money Laundering, “APG Mutual Evaluation Report on Myanmar”, 10 July 2008, http://www.apgml.org/documents/docs/17/Myanmar%202008.pdf.

[5] Asia Pacific Group on Money Laundering, “APG Mutual Evaluation Report on Myanmar”, 10 July 2008, http://www.apgml.org/documents/docs/17/Myanmar%202008.pdf.