FATF keeps Myanmar on high-risk list and sets February review warning

Archive catch-up: This report covers developments announced on 30 October 2026. First published by InsideASEAN on 11 November 2026 and filed under the historical reporting date.

The Financial Action Task Force (FATF) kept Myanmar on its high-risk list on October 30 and warned that it would consider countermeasures if the country made no further progress by February 2027. This decision continues to enforce enhanced due diligence measures, requiring financial institutions to strengthen monitoring of business relationships to identify unusual or suspicious transactions.

The FATF noted that fraud and cyber scam operations remain widespread in Myanmar, posing significant illicit-finance risks. While acknowledging some steps taken by the country, including plans for a national anti-online scams centre and enhanced international cooperation, the FATF called for further action, particularly regarding the protection of trafficking victims.

Importantly, the FATF emphasized that the checks should not disrupt or discourage humanitarian funding, legitimate nonprofit activity, or remittances, specifically highlighting the need for earthquake relief efforts to avoid disproportionate effects on civil society.

Myanmar’s action plan expired in September 2021. The FATF reiterated that the country would remain under scrutiny until it completes its action plan, which includes improvements in financial intelligence and money-laundering investigations and prosecutions.

In contrast, Cambodian media reported that Cambodia successfully avoided being placed on the FATF's increased monitoring list, celebrating its removal from such scrutiny in February 2023 after demonstrating significant progress in strengthening its anti-money laundering and counter-terrorism financing measures. According to the Cambodia Investment Review, the FATF recognized Cambodia's efforts and encouraged continued collaboration with the Asia/Pacific Group on Money Laundering to maintain these improvements.

While Myanmar faces the FATF's most serious “call for action” status, Cambodia's status remains stable, with its financial systems deemed sufficiently robust to avoid increased scrutiny. Cambodian outlets highlighted that Myanmar is now the only Mekong-region country on the FATF's high-risk list, alongside North Korea and Iran, framing this as a concerning regional issue.

Moreover, Cambodian coverage underscored the FATF's removal of several countries from its monitoring list, contrasting this positive development with Myanmar's ongoing challenges. This divergence in framing reflects a broader narrative in Cambodia, where the focus is on national achievements in financial governance, while Myanmar's situation is portrayed as a continuing crisis requiring urgent attention.

Adding to the complexity, Myanmar's local media have reported on the broader implications of the FATF's decision, particularly in the context of the military junta's governance. Outlets like DVB and Myanmar Now have highlighted the regime's ongoing struggles with legitimacy and international relations, particularly following the recent summoning of the German chargé d'affaires over comments regarding ousted President Win Myint. This incident underscores the junta's sensitivity to international criticism and its attempts to assert control over narratives surrounding its governance.

Furthermore, Myanmar Now reported on the junta's recent military offensives against the National Unity Government (NUG) and its associated forces, indicating that the regime is actively attempting to consolidate power amid international scrutiny. The military's operations in regions like Mon State and Bago are seen as efforts to distract from its governance challenges, including the FATF's findings.

Additionally, Myanmar's media noted that despite assuming the ASEAN presidency, Min Aung Hlaing, the coup leader, remains barred from attending the upcoming ASEAN summit, highlighting the ongoing regional isolation of Myanmar's military leadership. This further complicates the junta's position as it seeks to navigate both international scrutiny and domestic governance challenges.

Local reports have also pointed to the broader implications of the FATF's findings, emphasizing the connection between the military's financial activities and the ongoing civil conflict fueled by the jade trade. The jade industry, particularly in Hpakant, has been linked to financing both the military and armed opposition groups, complicating the financial oversight landscape. DVB noted that the jade smuggling trade has intensified since the coup, with the military and ethnic armed groups vying for control over lucrative mining operations, further entrenching a cycle of corruption and violence.

Overall, the FATF's findings highlight the stark contrast between Myanmar's ongoing struggles with financial oversight and Cambodia's recent successes, emphasizing the need for continued vigilance and improvement in the region's financial integrity. As Myanmar navigates its precarious position, the interplay between international scrutiny and domestic governance will be crucial in shaping its future.