[ Dec 5 , 2003 ]

            A Press Conference was held in the Meeting Hall of the Defence Services Guest House at No.20 Inya Road on 5 December 2003 to give a clarification of the Control of Money Laundering Rules (Notification No.1/2003) issued by the Ministry of Home Affairs on 5 December 2003.

Chairman of the Information Committee, Minister for Labour U Tin Win, Minister for Home Affairs Col. Tin Hlaing, Minister for Finance and Revenue Maj. Gen. Hla Tun, Deputy Minister for Foreign Affairs U Khin Maung Win, Deputy Minister for Information Brig. Gen. Aung Thein, Deputy Attorney General Dr. Tun Shin, high-ranking military and government officials and local and foreign news correspondents were present on the occasion.

          Minister for Home Affairs Col. Tin Hlaing gave a clarification on the Control of Money Laundering Rules. Minister Col. Tin Hlaing stated that the State Peace and Development Council promulgated the Control for Money Laundering Law as Law No.6/2002 on 17 June 2002.

With the promulgation of this law it became necessary to enact relevant supplementary rules in order to implement necessary action in accordance with the Law. As a result responsible officials of the government departments and organizations concerned after due consultation and coordination drafted the Control of Money Laundering Rules and having obtained the approval of the Government, the said rules were issued in Notification No.1/2003 dated 5 December 2003.

          The Minister then gave the following reasons for holding the  press conference.

(a)              The Government of the Union of Myanmar, in order to realize its goals for the success of its political, social and economic policies has laid down solid foundations for its fiscal and monetary policies and has been carrying out systematically, its functions of increasing the peoples treasury, safeguarding it and overseeing its disbursement. Everyone is aware that the Government is making every endeavour with sincere good will to raise the standard of living of the people. This clarification is being made especially so that people with dishonest intent shall not be able to take unfair advantage of the enactment of these rules.

(b)             This clarification is made also to dispel undue anxiety among the people and other financial organizations. As it may be recalled a similar press conference was held when the Control of the Money Laundering Law was enacted on 17 June 2002. (Press Conference held on 19 June 2002).

          This Law and the attendant rules have been enacted with four objectives in view which are: _

(a)      To control money laundering and its accompanying crimes and crimes committed in turning black money to white. 

(b)     As protection against those with illegal money from interfering in the administrative, economic and social affairs of the State.

(c)      To adhere to international conventions in carrying out    these tasks.

(d)      For more effective relations in conducting international     and regional affairs and in transactions with neighbouring countries.

Related Offenses

          Nine offenses have been specified as arising from the violations of the Law for the control of the Money Laundering Law and related rules. They are:

(a)      Offences committed under the Narcotic Drugs and Psychotropic Substances Law;

(b)     Trafficking in and smuggling of women and children;

(c)     Undertakings of a financial institution without an operating licence issued by the Central Bank of Myanmar;

(d)     Theft and smuggling out of the country of antiques and articles of cultural heritage;

(e)              Illegal trafficking of arms, ammunitions and explosives;

(f)               Counterfeiting money, using and possessing thereof;

(g)              Hijacking of aircraft, vessel or any type of vehicle;

(h)              Cyber crimes committed by electronic means;

(i)                Offences committed by acts of terrorism;

          Hence the Minister emphasized the fact that the Control of Money Laundering Law and the Control of Money Laundering Rules are not a cause for concern or anxiety on the part of Myanmar citizens earning an honest livelihood. Moreover, the rules that have been enacted today do not in any way concern the normal day to day money transactions. 

The Minister also explained in detail the significance of the rules.  He said that in accordance with the law enacted if reports casting suspicion should be received, the Central Control Board shall form an Investigative Body comprising not less than three qualified persons. This Investigative Body shall than submit its findings to the Central Control Board. Then if the Central Control Board should find supporting evidence that a money laundering offense has been committed by some person or other, then it shall form a Preliminary Scrutiny Body comprising of not less than three members, to be headed by a deputy minister as chairman. The Central Board shall issue orders for action to be taken only if the findings of the Preliminary Scrutiny Body confirms that there is sufficient evidence. These proceedings show that the laws, rules and procedures have been systematically drafted and drawn up and that citizens earning an honest living need have no anxiety of being affected by them.

          Furthermore as provided in chapter 11, it will be found that the person under investigation also has the right to appeal his case to the Government with complete facts and figures, within 90 days of action being taken. Moreover, according to provisions made in chapter 12, if the said money and property in question have been acquired unwittingly and in good faith, or if the said money and property have been acquired through right of inheritance in accordance with the law, then that person shall not be held responsible and shall not be affected by the law.

The said Law and rules it should be noted have been enacted not to oppress of the people but to protect their rights and privileges.

The Control of the Money Laundering Law and Rules have been enacted because offenses associated with money laundering have given rise to world-wide transnational crimes to the yearly average value of 1-5 Trillion U.S. Dollars. Hence, the reason why the 20^th U N General Assembly passed a resolution urging its members to pass laws against money laundering. Myanmar has accordingly enacted the Control of Money Laundering Law and its rules.

In drafting and drawing up this law and its rules a thorough study was made of U N conventions, U N Model Law, the Forty-Eight Recommendations of the Financial Action Task Force (FATF) as well as the Laws of ASEAN member countries. The Attorney General headed a group of members from the various ministries concerned and in close consultation and co-ordination drew up the law and rules.

The Control of Money Laundering Law came into force on its promulgation on 17 June 2002 and therefore covers such money and property obtained by illegal means with effect from that date. This Law does concern any such money and property obtained prior to that date.

 Moreover, if any action is to be taken in accordance with the Control of Money Laundering Law, it cannot be taken by the lower echelons of government. Legal action can be taken only with the express permission of the Ministry of Home Affairs.

Next, the Minister of Finance and Revenue also gave a clarification with regard to this Law and the Rules. 

Minister Maj. Gen. Hla Tun said that the Treasury Department of the United States of America on 19 November 2003 made a statement alleging that two private banks in Myanmar Mayflower Bank and Asia Wealth Bank are institutions of “primary money laundering concern”.

To look into the validity of these allegations, the authorities concerned had formed an Investigation Body and will carry out the necessary investigations in accordance with SECTION 8 Sub-section (c) of “The Control of Money Laundering Law” of the Union of Myanmar.

During the investigation period, the operations of the above-mentioned banks will be placed under the supervision of the Banks Supervision Committee of the Ministry of Finance and Revenue in order to ensure that the normal banking services can be conducted smoothly at both headquarters and branch offices of the two banks. Arrangements will be made so that banking activities such as withdrawals of deposits and repayment of loans can be made in the usual manner and without any difficulty.

The Ministry of Finance and Revenue will assume the responsibility for ensuring that there will be no cause for concern for the customers of the two banks, and also to ensure that other banks will not be affected as a result of the investigation.

Therefore, the Ministry of Finance and Revenue wishes to inform the people that clients can conduct business with the banks and banking services as usual with confidence. 

After the briefing, questions raised by the correspondents were answered by, Minister for Home Affairs, Col.Tin Hlaing, Minister for Labour U Tin Win, Minister for Finance and Revenue Maj.Gen Hla Tun, Deputy Minister U Khin Maung Win, Deputy Attorney General Dr. Tun Shin and Brig.Gen. Than Tun.

Minister for Home Affairs in response to a question raised in connection with the Myanmar Mayflower Bank and the Asia Wealth Bank, said that, the Central Control Board for the Control of Money Laundering, formed according to Order No: (6/2002), dated 4-6-2002 issued by the Government of the Union of Myanmar has, in accordance to the provisions made in section 8, sub-section (b) of the Control of the Money Laundering Law has formed an Investigative Body and assigned the task of ascertaining whether the Myanmar Mayflower Bank and the Asia Wealth Bank has undertaken money laundering as alleged. The Investigative Body is to submit its findings to the Central Control Board within three months maximum.

The Press Conference was brought to a close at 11:30 hours.