Myanmar remains on FATF blacklist amid ongoing AML concerns
The Financial Action Task Force (FATF) has confirmed that Myanmar will remain on its list of High-Risk Jurisdictions Subject to a Call for Action, commonly known as the FATF blacklist, following its 19 June 2026 review. FATF acknowledged that Myanmar has made progress in strengthening its anti-money laundering and counter-terrorist financing (AML/CFT) framework, including improvements in investigations, international cooperation, and asset confiscation efforts.
Myanmar has been subject to increased monitoring since October 2022 after failing to meet key obligations under its FATF action plan. As a result, foreign financial institutions must continue to conduct enhanced due diligence on Myanmar-related transactions and commercial partnerships.
Why Myanmar remains on blacklist
Myanmar remains on the high-risk jurisdictions list because it has not fully addressed weaknesses in its anti-money laundering and counter-terrorist financing systems. FATF has pointed out that the country still lacks effective mechanisms to detect, investigate, and prosecute money laundering in line with the risks it faces.
The agency stated, “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.”
As of June 2026, only three countries remain on the FATF blacklist: Myanmar, Iran, and North Korea. FATF’s June review did not add or remove any jurisdictions, leaving Myanmar’s status unchanged despite some progress.
According to FATF, Myanmar’s action plan expired in September 2021. It failed to meet the majority of its duties within the timeframe specified. As a result of this problem, it was blacklisted in October 2022. The progress was measured using FATF review cycles.
FATF has pointed out several recurring weaknesses in Myanmar’s AML/CFT system. These include limited use of financial intelligence, too few money laundering investigations, weak prosecution outcomes, and little success in disrupting criminal financial networks. Concerns also extend to the country’s ability to address newer risks such as technology-driven fraud and cybercrime.
Enhanced use of financial intelligence
Myanmar has made some progress in combating financial crime. Authorities have improved how financial information is gathered and used in investigations. This is significant because modern crimes frequently leave digital traces that, when analysed, can reveal larger criminal networks rather than individual incidents.
The FATF commended Myanmar’s success in cross-border money laundering investigations. Criminal groups rarely operate solely within a single country; in such circumstances, cooperation with other countries is critical. Increased coordination indicates that Myanmar is becoming more involved in global enforcement operations.
Another area of improvement is asset recovery. Authorities have stepped up freezing, seizing, and confiscating criminal proceeds. Removing illicit gains is considered one of the strongest deterrents against organised crime, as it strips away the financial incentives. FATF acknowledged Myanmar’s progress in this area during its latest review.
FATF’s October 2026 warning
The FATF review in June 2026 came with a strong warning that countermeasures would be implemented if no further progress was made by October. Countermeasures may include restrictive measures designed to protect the international financial system from high-risk countries. The FATF has not stated what actions could be implemented, but the warning alone is cause for concern.
The declaration also stressed the importance of protecting humanitarian operations. The FATF stated that enhanced due diligence should not hinder genuine aid, non-profit activity, remittances, or earthquake relief. This distinction is important because strong AML/CFT rules can create obstacles for organisations providing assistance in high-risk locations. FATF recommended stakeholders use proportional, risk-based measures to protect civil society and humanitarian groups.
Growing threat of fraud and cyber scams
FATF has raised serious concerns about the scale of fraud and cyber scams in Myanmar. These operations remain extensive and continue to generate major illicit finance risks. These scams often involve fake investment platforms, online fraud schemes, romance scams, cryptocurrency fraud, and other forms of digital deception. The money generated requires laundering channels, making AML enforcement central to tackling cybercrime. FATF’s comments show that cyber scams remain one of the biggest obstacles to Myanmar’s progress in compliance.
Even though Myanmar has formed a national committee to combat online fraud and gaming and increased international cooperation, the FATF believes the problem remains severe. Criminal groups adapt faster than enforcement systems, posing a constant challenge to authorities attempting to block illicit cash flows.
FATF also highlighted the link between cybercrime, human trafficking, and organised crime. Many scam compounds reportedly rely on trafficked individuals forced into fraudulent activities. Addressing financial crime therefore requires not only law enforcement but also victim protection and human rights safeguards.
Being blacklisted by the FATF will have serious economic consequences. When dealing with Myanmar-related business, enhanced due diligence is required. This will increase costs and cause delays in transaction processing. In some situations, banks will refuse to conduct business with blacklisted countries. Being blacklisted is viewed by foreign investors as a warning sign of increased regulatory and reputational risk.
China–Myanmar anti-fraud push
Chinese President Xi Jinping has urged Myanmar to step up efforts against criminal activities such as online gambling. During talks in Beijing, Myanmar’s leader Min Aung Hlaing said the country is ready to work closely with China to crack down on online gambling and telecom fraud while safeguarding border security.
The meeting comes months after China executed 11 people linked to scam centres in Myanmar, convicted of homicide, fraud, and running casinos. At the time, China’s Foreign Ministry said it was cooperating with Southeast Asian nations to eliminate online gambling and telecom fraud.
However, the executions followed earlier claims by Chinese officials that scam parks near the Myanmar border had already been dismantled. The persistence of these operations shows how difficult it has been to eradicate illegal networks in the region fully.
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