Hluttaw discussed to tackle the issue illegal foreign money transfer; Money Laundering

07 February 2019

Foreign money transfer services are widely practiced illegally such as Hondi, along the road of Anawyahtar, Yangon. Due to the transaction being done illegally, we cannot know how much country tax revenue is losing. Plus, money laundering or black money service seems to be becoming notorious.

Regarding to that issue, Hluttaw discussed about the detail at the 2nd Pyithu Hluttaw 11th regular session in Nay Pyi Taw, to directly manage, monitor and tackle the consequence problems of foreign money transfer services such as money laundering, losing country tax revenue, and the central bank service.

Daw Nan Moe from Mantong constituency asked about the issue illegal  foreign money transfer to the Hluttaw; how much is a person allowed to transfer per week, the current process of handing the illegal foreign money transfer, and money laundering.

Illegal foreign money transfer seems to be used for the support of money laundering and terrorism. To monitor the issue, legal permit for it has been arranged, said deputy governor of the Central Bank of Myanmar, U Bo Bo Nge.

One singular person is allowed to transfer USD 10,000 at most per week, for legal foreign money transfer. For the authorized banks in Myanmar, 3 public banks, 19 local private banks and 13 foreign bank branches, so there are altogether 35 banks that are permitted to transfer money to foreign countries.

Daw Nan Moe said, in Myanmar, people are still using the illegal foreign money transfer service because of the weak rule of law of Foreign Exchange Management Law and the Anti-Money Laundering Law, weak performance of respected departments, and those unnecessary requirements during legal bank transfer process.

“When we study why illegal foreign money transfer is using most, it is due to the market’s needs. Supply is existed because of demand. Therefore, the respected departments have to do something to protect money laundering problem, not to lose country tax revenue and balance of supply and demand,” pointed out Daw Nan Moe from Mantong constituency.

To monitor the illegal foreign money transfer, learning lesson and system from Singapore and Thailand, the draft law was sent to the president office, said U Bo Bo Nge.  They are working in coordination with the monetary authority of Singapore and the Bank of Thailand.

At Draft Law, how to report, what kind of information to keep, how to provide training to the employees from banks, and how to report issue to the central bank of Myanmar are included. Trainings for reporting issue, reporting system will be provided to foreign money transfer banks, Authorized Dealer to protect problems of money laundering.

LOOM