Myanmar Stays on FATF High-Risk List Amid Scam Concerns

Myanmar remains on the FATF list of high-risk jurisdictions subject to a call for action, as international concern grows over cyber scams, illegal online gambling and illicit financial flows linked to the country.

Myanmar has remained on the Financial Action Task Force’s list of high-risk jurisdictions subject to a call for action, keeping the country under close international scrutiny over money laundering, terrorist financing and cyber-enabled financial crime risks.

In its June 19 update, the FATF confirmed that Myanmar is still listed alongside the Democratic People’s Republic of Korea and Iran. The designation means that FATF members and other jurisdictions are urged to apply enhanced due diligence to financial relationships and transactions involving Myanmar, proportionate to the risks.

The FATF said Myanmar has taken some steps to improve its anti-money laundering and counter-terrorist financing framework. These include greater use of financial intelligence in law enforcement investigations, work on transnational money laundering cases through international cooperation, and increased freezing, seizure and confiscation of criminal proceeds.

However, the global watchdog also made clear that the country’s action plan remains incomplete. Myanmar is expected to continue improving its understanding of money laundering risks, strengthen risk-based supervision, ensure that beneficial ownership information is available in a timely manner, and demonstrate more effective investigation and confiscation of criminal proceeds.

The most important point for the gambling and cybercrime sector is the FATF’s warning that fraud and cyber scam activities in Myanmar remain extensive and continue to present significant illicit finance risks. The organisation noted that Myanmar has taken some action, including the formation of a national committee to combat online fraud and gambling, but these measures have not yet been enough to remove the country from high-risk status.

Myanmar has become a major focus of international concern because of the growth of scam compounds, illegal online gambling operations and fraud networks in border areas. These operations are often linked to underground banking, human trafficking, forced labour, cryptocurrency flows and cross-border money laundering.

The issue is not limited to Myanmar’s domestic financial system. Scam centres in the region have targeted victims internationally, while criminal networks use payment channels, digital assets, informal money transfer systems and shell structures to move proceeds across borders. This makes the problem relevant for banks, payment companies, virtual asset service providers and gambling regulators far beyond Southeast Asia.

UNODC has previously warned that scam centres and underground financial networks in Southeast Asia have reached a global scale, with operations concentrated in border zones and special economic areas across countries including Myanmar. Crackdowns can disrupt some compounds, but criminal groups often relocate, restructure or use new digital tools to continue operating.

For the gambling industry, Myanmar’s continued FATF status is important because illegal online gambling is increasingly treated as part of a wider financial-crime ecosystem. Betting platforms, scam compounds and underground payment networks can overlap, especially where unlicensed operators use gambling activity to move money or disguise proceeds from fraud.

For regulated operators and payment providers, the message is clear: exposure to high-risk jurisdictions requires stronger due diligence. Transactions, affiliates, payment routes, customer acquisition channels and business partners connected to Myanmar or neighbouring high-risk areas may attract greater scrutiny from compliance teams and regulators.

The FATF decision also shows that enforcement pressure is shifting from individual scam sites to the financial systems that support them. If cyber scams and illegal gambling remain active, international authorities are likely to continue focusing on money flows, beneficial ownership, asset freezing and cross-border cooperation.

Myanmar’s continued presence on the FATF high-risk list underlines the scale of the challenge. While recent steps against online fraud and gambling may show some movement, the country will remain under pressure until it can demonstrate that enforcement is effective, proceeds are being confiscated and criminal networks are no longer able to use its territory and financial channels at scale.