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Central bank to issue official remittance licences soon

The Central Bank of Myanmar (CBM) will grant official remittance Llicences to authorised money changers within two months, CBM Deputy Governor U Bo Bo Nge told the media on Wednesday.

The move is expected to curb illegal remittances and the informal flow of foreign currency into the country under the Hundi, U Bo Bo Nge said.

“The informal flow of currency outside the banking industry through unofficial money transfers is much larger than the legal currency flows inside the banking industry. We have plans to take harsh actions against these illegal remittances.

That is why we will grant licences to official money transfer businesses within the next two months,” U Bo Bo Nge said.

Much of the illegal money transfers take place in the export sector. Illegal remittances are also made by migrant workers in Thailand and Malaysia.

He added that punishments will be meted out on those who violate the rules or work without the licences but that registration fees for the licences “will not be expensive”.

Negotiations will be made with the customs department to control illegal money transfers in the export sector.

“The customs clearing policy which started in 2017 needs some adjustments and after that, actions will be taken on export income that do not enter the country from official routes,” he said.

The announcement comes after the CBM on January 30 officially introduced Japanese yen and Chinese yuan as settlement options for banks in cross-border payments and transfers.

With the aim of facilitating border trade and controlling informal currency flows, the CBM’s January 30 directive permits banks with authorised-dealer licences for foreign exchange to open yen and yuan accounts and settle trades in those currencies.

SOURCE: MYANMAR TIMES

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