Japan Pushes to Remove Myanmar from Global Financial Blacklist Despite Ongoing Crime Concerns

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Japan is urging the Financial Action Task Force (FATF), the global body responsible for tackling money laundering and terrorist financing, to remove Myanmar from its list of high-risk countries. The move could ease international financial restrictions on the Southeast Asian nation and make it easier for businesses to carry out transactions, but it is also raising questions about whether Myanmar has done enough to address concerns over illicit financial activities.

According to reports, Japan is making the case that removing Myanmar from the blacklist would support economic recovery and improve the country’s access to international business opportunities. Another major Asian country is reportedly backing the proposal, although it remains uncertain whether the FATF will agree to the request during its meeting in Paris. Myanmar has been on the list since October 2022, following continued failure to address serious weaknesses in its systems for preventing money laundering and terrorist financing.

The FATF’s classification requires financial institutions to apply enhanced scrutiny to transactions involving Myanmar. This means banks and other financial organisations must carry out additional checks to identify suspicious financial activity, making international payments and business relationships more difficult. However, the organisation’s June 2026 assessment acknowledged some progress by Myanmar, including increased use of financial intelligence in investigations and improvements in freezing and confiscating criminal proceeds. It also stressed that significant shortcomings remain, particularly in money laundering investigations and prosecutions.

One of the biggest concerns is the continued presence of large-scale online fraud and cybercrime operations in Myanmar. Scam centres, some reportedly linked to armed groups and military-aligned militias, have been associated with trafficking, forced labour and international financial fraud. The FATF has warned that these activities continue to pose serious risks to the global financial system, despite efforts by authorities to tackle online scams and strengthen cooperation with neighbouring countries.

The debate also comes against the backdrop of Myanmar’s political and economic instability following the military coup in February 2021, which removed the country’s elected government and triggered widespread conflict. While some countries are exploring renewed engagement with the military-backed administration, international criticism and sanctions remain in place. The European Union, for example, extended its sanctions against Myanmar until at least May 2027, citing continued human rights violations and restrictions on fundamental freedoms.

Japan’s proposal therefore places economic recovery and international financial security at the centre of a difficult debate. Although Myanmar has demonstrated some improvements, the FATF’s latest published assessment still requires it to complete its action plan before it can leave the high-risk list. Whether the organisation accepts Japan’s push will depend on its assessment of the country’s progress and whether the remaining concerns can be adequately addressed.