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 effectiveness of law enforcement and judicial institutions. The military regime has exploited anti-corruption mechanisms for political purposes, while various sectors, including mining and banking, are plagued by conflicts of interest and a lack of regulatory oversight, exacerbating the country's vulnerability to crime and corruption.

In addition to systemic corruption, Myanmar faces significant challenges from organized crime, including human trafficking, arms trafficking, and drug production, with the military and ethnic armed organizations playing pivotal roles in these illicit activities. The overall economic crisis, compounded by international sanctions and the suppression of civil society, has further weakened resilience to crime, leaving the population exposed to heightened risks and limited support for victims and witnesses of criminal acts.

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 and led to a sharp decline in real GDP by over 20% from 2020 to 2024. The military regime's restrictive policies, including onerous import licensing and foreign currency conversion rules, have severely hampered commercial activities, prompting many foreign investors to suspend or withdraw their operations, while ongoing conflicts and economic mismanagement have exacerbated the situation. The legal and regulatory environment remains opaque, with increasing risks of expropriation and political repression, making Myanmar a challenging landscape for foreign investment, despite the existence of some legal frameworks intended to promote foreign direct investment.