Myanmar banks to inspect borrowers’ income disclosures: Central Bank

Myanmar banks should inspect borrowers’ disclosed income before extending loans to them, according to the Central Bank of Myanmar (CBM). This is to ensure the disclosures are legit and that borrowers are not involved in potential money laundering activities. For example, some borrowers can disclose certain items as bank loans to avoid being taxed.

In February, the Paris-based inter-governmental Financial Action Task Force (FATF) put Myanmar on its grey list, implying that it had found strategic deficiencies in the country’s ability to counter money-laundering and terrorism financing. The decision places Myanmar banks, financial organisations and the CBM under negative pressure as international lenders now regard Myanmar as a high risk borrower.

The FATF wanted other countries to be more careful as money laundering is the conduit for illegal property, gold, gems and jewellery sales in Myanmar. The FATF deems cases of tax evasion and laundering the money and assets obtained from tax-related and other crimes as criminal cases.

As such, the CBM is taking efforts to prevent Myanmar from falling the FATF’s black list. It is now increasing supervision and inspections of Myanmar’s lenders based on money laundering risks, complexity and individual bank’s transactions. Among the measures is the latest requirement for banks to supply information on income sources regarding bank loans whenever requested by the CBM.

Meanwhile, when submitting instances of increased bank capital and share transfers, the shareholder himself should pledge that the funds represent taxed income and is free from money laundering activities. Approvals will be granted only when these declarations are submitted to the Ministry of Planning, Finance and Industry and Anti-Money Laundering Central Board for inspection of clearance from money laundering, the CBM stated.

Source: Myanmar Times

Wave Money wins“Best Digital Wallet of the Year” and“Best Mobile Payments Service” at Global Retail Banking Innovation 2020

Wave Money, the leading mobile financial service provider in Myanmar, won the “Best Digital Wallet of the Year” and “Best Mobile Payments Service” award at the Global Retail Banking Innovation 2020 organized by the Digital Banker. Wave Money was highly commended for delivering innovative services and social impact, particularly to the unbanked and underserved communities. Heldin Singapore, the annual awards recognized Wave Money as an outstanding financial institution among the world’s top financial institutions, and that showed excellence in digital
innovation, social and digital inclusion, and service delivery to vulnerable sectors during this COVID-19 pandemic.

The Digital Banker is a global trusted news, business intelligence and research partner to the worldwide financial services sector. One of its flagship programmes, the Global Retail Banking Innovation Awards recognizes and celebrates the world’s outstanding retail banking and financial institutions with a distinguished contribution to the industry.
Best Digital Wallet Launched in 2018, WavePay is a super app that meets the lifestyle needs of digital natives while helping advance greater financial inclusion among the unbanked population in the countryside.


WavePay is a convenient, secure, simple and reliable way to remit and receive money, pay utility bills and loans, top-up mobile services, shop online as well as pay at physical checkout counters. In October 2020, Wave Money has set a new record as the WavePay application crossed 1.1 million monthly active users, and an impressive daily average growth of 162% in new WavePay registrations this year. Best Mobile Payment Service Wave Money has brought the benefits of financial services to millions of Myanmar people who were previously unbanked and underserved. During this challenging COVID-19 era, Wave Money has been fully leveraging its platform to help the Myanmar community.


Millions are using WavePay to conveniently and securely transfer money and make daily payments and financial transactions in the comfort and safety of their homes. Government, humanitarian agencies and corporates are also using WavePay to digitallydelivering COVID-19 emergency cash to vulnerable sectors, including at-risk communities in rural, remote Myanmar Wave Money also initiated “WavePay It Forward” to help government, non-government institutions, and humanitarian agencies leverage the digital to deliver essential payments and mobilize relief funds for those severely impacted by the COVID-19 pandemic.

Wave Money has the largest agent network in Myanmar, covering 89% of the country with over 64,000 agents as of November 2020. Over the years, Wave Money has seen exceptional business and customer growth, which reflects service and technology excellence. From an annual remittance value of 2 trillion Myanmar kyat in 2018, Wave Money moved 6.4 trillion Myanmar kyat (US$ 4.3 billion) in 2019. As of September 2020, Wave Money’s total remittance value was already at 8 trillion MMK (US$5.9 billion).

Source: The Global New Light of Myanmar

decline

Myanmar exports plunge by $1.2 bln as of 11 Dec amid COVID resurgence

Myanmar exports over past two months of the current financial year 2020-2021 plummeted to US$2.647 billion, reflecting a tremendous drop of $1.2 billion compared with a year-ago period of the previous FY, according to the data from the Ministry of Commerce. During the corresponding period in the previous FY, exports stood at $3.847 billion, according to the data released by the ministry. Both sea trade and border trade dropped amid the coronavirus impacts. The neighboring countries tightened border security and limited the trading time to contain the spread of the virus. Moreover, the severe container shortage has become the biggest disrupter in shipping amid the coronavirus impacts, on the back of robust demand on the Asia-Europe and transpacific trade.

Container shipping costs are drastically surging. Pandemic-induced container shortage pushed up the freight rates to almost triple in Myanmar, causing delays for exporters. Of the seven export groups, agricultural exports showed an increase of $147 million against a year-ago period. Meanwhile, exports of livestock, forest products, minerals, fishery products and finished industrial goods declined. Between 1 October and 11 December of the current FY, export values have registered at $845.63 million for argo products, $14.4 million for livestock, $184.233 million for fishery products, $233.448 million for minerals, $23.7 million for forest products, $1.257 billion for manufactured goods, and $88.574 million for other goods.

The country’s export sector relies more on the agriculture and manufacturing sectors. At present, CMP garment exports drastically dropping as the western countries cancelled order amid the COVID-19 crisis. The Ministry of Commerce is focusing on export promotion and market diversification. Since 2011, the Ministry of Commerce has adhered to its reform policy. A series of moves to liberalize and open the economy have been introduced through policy development to improve the trade
environment.

Source: The Global New Light of Myanmar