CNI News

23 Oct 2022

The blacklisting of Myanmar by the Financial Action Task Force should be tackled by the Central Bank of Myanmar and relevant financial institutions, according to Myanmar economic observers.

An anonymous economic observer told the CNI that the regime should rebuild the trust on the banking system and prevent the illegal flow of foreign currencies.

He said, “The central bank alone cannot do anything. There are bodies responsible for illegal flow of illegal money. The body is under the control of the Myanmar police force. Illegal trade must be prevented by the Ministry of Commerce. There are many criteria. First, all money must flow through official channels or through the banking systems.

The FATF blacklisted Myanmar over the concerns about casinos and cross border smuggling, according to official close to the FATF.

Some businessmen and economists said that the restrictions on the businesses and trade were forced companies to turn to illegal trade even though they do not want to violate money laundering laws. Restrictions on foreign currencies force them to turn to illegal trade. They should also need to regulate casinos according to the law, he told the CNI.

The blacklisting may have an impact on the financial sector of the country and hamper foreign investment, according to businessmen.

On the other hand, the SAC will reduce on the reliance on US dollar and will depend more on Russia, Political Analyst U Ye Tun told the CNI.

He said, “As they were frequently taken action for the use of US$, they will decouple from it and try to join other currencies like the Ruble and Yuan. This will make the SAC to think they are right to join to the other currency systems.”