27 Jan 2017
MYANMAR: Illicit Export Earnings Targetted in Government Crackdown
The export earnings of all businesses are to be subject to greater scrutiny, with legal action likely against any company that fails to properly declare such transactions. In line with guidelines issued by Myanmar’s Central Bank, all foreign exchange transactions related to exports or imports must be conducted through official banking channels. Legal action will then be triggered in any case where there is a clear discrepancy between the declared volume of export goods and the sum subsequently deposited.
The measure comes as part of a government bid to regulate the informal foreign currency market and to stabilise the volatile US dollar-Kyat exchange rate. As an indication of the scale of the problem, while the value of goods exported from Myanmar between January and August 2016 was US$4.95 billion, only US$3 billion was processed as export earnings through local Myanmar banks.