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The Central Bank of Myanmar (CBM) has approved two more foreign remittance licenses to reduce the number of illegal remittance transactions and create more remittance transactions

The Central Bank of Myanmar (CBM) has issued two more foreign remittance licenses to reduce the number of illegal remittances and legalize remittances, and will be able to officially accept and send remittances. City Express Myanmar Ltd and Money King Co., Ltd were re-licensed by the Central Bank on 5 January 2021. The Central Bank of Myanmar started issuing foreign currency remittance licenses to five companies on November 18, 2020: OK Zune Co., Ltd .; 2C2P Plus (Myanmar) Co., Ltd; Wakhema Trading Co., Ltd; Top Shine General Services Co., Ltd; and OKM Global Remittance, which now has seven foreign remittance licenses. The holder of the foreign remittance business license must deposit 100 million kyats as security deposit and if the central bank directs that the business insurance deposit should be more than 100 million kyats due to the large size of the business, the licensee must comply with the instructions. 

The Revolving Fund must be kept in a separate account at an AD licensed bank and the bank statement of each bank account must be submitted to the Central Bank once a month. Holders of foreign remittance licenses are required to carry out Inward and Outward Remittance Business between Myanmar and other countries and receive money only for the purpose of remittance. Receiving money for remittances abroad when conducting remittance services; Remittances received in Myanmar must be made in Myanmar Kyats only. Foreign remittance services must be carried out only in the area permitted by the license. Back End Transactions can be carried out as a batch transaction between a local bank account and a private bank account or agent or branch or branch bank account or joint venture bank account. 

Netting must be done and remittances must be made through AD licensed banks. Once a month, the Central Bank of Myanmar shall submit the bank statement of the account opened abroad of the remittance business. The financial statements shall be submitted to the Foreign Exchange Management Department and shall be submitted to the Central Bank in accordance with the prescribed schedule. The maximum remittance amount per remittance or remittance amount is US $ 1,000, and the central bank limits the amount per remittance or remittance amount per person to US $ 5,000 per month.

Holders of foreign remittance licenses are required to comply with anti-money laundering and anti-terrorism provisions, and must report any suspected remittances in the remittance, which shall be maintained for at least five years. The initial license fee for foreign money transfer is one million kyats. The annual fee is 100,000 kyats and the license is valid for three years. Holders of foreign remittance licenses will be subject to disciplinary action up to and including revocation of their licenses if they violate the rules and regulations set by the Central Bank, and will face a fine of not less than 10 million kyats for each non-compliance.

Source: Daily Eleven

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