Myanmar will remain on the Financial Action Task Force’s (FATF) list of high-risk jurisdictions following its latest review on 19 June 2026, as the global watchdog concluded that the country still has significant weaknesses in its anti-money laundering and counter-terrorist financing framework.
The FATF confirmed that Myanmar continues to be subject to “enhanced due diligence” requirements rather than stricter countermeasures. This means financial institutions must apply additional scrutiny to transactions and business relationships linked to the country while monitoring for unusual or suspicious activity.
The decision follows Myanmar’s inclusion on the FATF “call for action” list in October 2022 after failing to complete key elements of its agreed action plan, which had expired in September 2021. The agency said most outstanding requirements remain unaddressed, despite some progress in recent reporting cycles.
Persistent gaps in AML/CFT framework
FATF stated that Myanmar still has structural deficiencies in detecting, investigating and prosecuting money laundering in line with its risk exposure. These gaps include limited use of financial intelligence, weak investigative output and insufficient disruption of illicit financial networks.
The organisation also noted that while improvements have been made, including stronger use of financial intelligence in law enforcement investigations and increased cooperation with international partners, these steps have not yet fully closed the compliance gap.
Authorities have also increased the freezing, seizure and confiscation of criminal proceeds and related assets. FATF acknowledged this as progress but emphasised that more work is required to ensure consistent enforcement across all risk areas.
The agency said Myanmar must “urgently work” to implement its remaining action plan items, including improving operational analysis within its financial intelligence unit and ensuring money laundering cases are investigated and prosecuted in line with assessed risks.
A key concern highlighted by FATF is the continued prevalence of fraud and cyber scam operations linked to Myanmar. As reported by Asia Gaming Brief, the organisation stated that such activities remain extensive and create substantial illicit finance risks.
These operations include online fraud schemes, investment scams and other digital-based financial crimes that often cross borders and rely on complex laundering networks. FATF noted that authorities have taken steps such as establishing a national committee to combat online fraud and gambling, alongside increased regional and international cooperation.
However, the agency said these measures have not yet significantly reduced the overall scale of the problem.
FATF also stressed the importance of considering victims of trafficking connected to criminal networks. In its statement, it said: “The FATF calls on Myanmar to take appropriate action to address the illicit finance risks associated with fraud and cyber scam threats and will continue to work with Myanmar in this regard. In tackling these illicit finance threats, Myanmar should have due regard for the victims of trafficking by criminal groups.”
Regulatory pressure and October 2026 warning
The FATF warned that if Myanmar does not demonstrate sufficient progress by October 2026, it will consider introducing countermeasures. These measures would represent a higher level of international financial restriction compared with the current enhanced due diligence framework.
At present, Myanmar remains alongside Iran and North Korea on the FATF’s list of high-risk jurisdictions subject to a call for action. No new countries were added or removed in the latest review cycle.
The organisation also emphasised that enhanced monitoring should not interfere with legitimate financial flows, including humanitarian assistance, non-profit activity and remittances. It specifically highlighted the need to avoid disrupting aid operations, including earthquake relief efforts.
Myanmar’s ongoing compliance challenges are closely linked to broader concerns about cyber-enabled fraud and cross-border financial crime in the region. FATF noted that criminal groups continue to adapt quickly, making enforcement more difficult despite increased coordination efforts.
Authorities have intensified international cooperation and taken steps to dismantle illegal networks. However, FATF said illicit scam activity remains widespread and continues to present systemic risks to financial integrity.
The agency also highlighted links between cyber fraud operations and human trafficking, where victims are reportedly forced into criminal activity within scam compounds. This connection has increased pressure on authorities to address both financial and humanitarian aspects of enforcement.
Remaining on the FATF high-risk list requires banks and financial institutions globally to apply enhanced due diligence to Myanmar-related transactions. This typically increases compliance costs, slows processing times and may discourage cross-border financial activity.
In some cases, financial institutions may limit or avoid exposure to jurisdictions designated as high risk due to regulatory and reputational concerns.
Despite these constraints, FATF has maintained that Myanmar will stay on the list of jurisdictions subject to a call for action until it fully completes its action plan.