Myanmar has been blacklisted by the International Money Laundering Monitoring Group (Financial Action Task Force – FATF). After the FATF meeting attended by representatives from more than 200 countries, including the World Bank and Interpol International Police, the Singaporean officer who chaired the FATF announced the inclusion of Myanmar in the blacklist.
Money laundering, the Paris-based FATF group formed by the Group of Seven developed countries. terrorist financing; Established in 1989 to protect against similar threats to the integrity of the global financial system, the group has added Myanmar to its blacklist, where only two countries were previously blacklisted, namely North Korea and Iran.
The blacklisting is expected to deal a blow to efforts to attract foreign investment after the military took over power in February 2021. Basically blacklisting Myanmar banks, With financial institutions, there will be more difficult notifications for international financial matters. This year, the value of the Myanmar kyat has fallen by about 60 percent compared to the dollar, a series of record-breaking devaluations, and it is on the verge of falling again.
Foreign direct investment inflows reached their lowest level in 2021 since Myanmar opened its doors to foreign investment in 2011. Even if the political crisis occurs, Foreign investors and worsening power outages; Policies that forced foreign currency to be exchanged for Myanmar kyats have scared away investments that are vital to the country’s thriving economy. The World Bank predicts that Myanmar’s GDP will stagnate this year after the economy shrank by nearly 20 percent in 2021. Furthermore, the International Labor Organization estimated that 1.6 million jobs were lost in Myanmar last year.
Source: The Global New Light of Myanmar