FATF warns Myanmar that stricter measures will be imposed if progress is not shown by October 2026

Yangon, July 16 The Financial Action Task Force (FATF) has warned that Myanmar, which has not yet sufficiently addressed strategic deficiencies in its anti-money laundering and counter-terrorism financing (AML/CFT) system, will consider imposing more severe countermeasures if it fails to show progress by October 2026. This was stated in a notification issued by the Hong Kong Securities and Futures Commission (SFC) on July 14 to licensed financial service providers, Virtual Asset Service Providers (VASPs), and related organizations, which included the FATF's statements from June 19, 2026. According to the FATF's statement, Myanmar has not sufficiently addressed the strategic deficiencies in its AML/CFT system over the past years, and since October 2022, it has urged FATF member countries and other nations to conduct enhanced due diligence commensurate with the risk level on financial transactions related to Myanmar. The FATF has reiterated its warning that it will consider imposing more severe countermeasures if Myanmar fails to show further progress by October 2026. The statement also noted that the FATF continues to designate North Korea and Iran as countries with the highest risk of money laundering and urged member countries to continue implementing effective countermeasures against these countries. Furthermore, the FATF has revised its list of "Jurisdictions under Increased Monitoring," adding Bosnia and Herzegovina and Iraq to the list, while removing Algeria and Namibia. The Hong Kong SFC has also warned licensed financial service providers, Virtual Asset Service Providers, and related organizations to exercise greater caution when conducting financial transactions with countries designated as high-risk by the FATF, and to conduct special due diligence in high-risk situations in accordance with relevant regulations. Photo: AP