"A global watchdog’s move to place Myanmar on a list of states perceived as prone to money laundering and terror financing has put renewed international pressure on State Counsellor Aung San Suu Kyi’s government to reform her nation’s opaque financial system. The Financial Action Task Force (FATF), a Paris-based intergovernmental agency founded by G7 nations, said in a statement last month that Myanmar had “proactively made progress” on curbing money laundering through new legislation and stiffer regulations on its cash-based remittance system. The FATF, however, also said that Myanmar still needs to improve its understanding of “money-laundering risks in key areas” and strengthen its governance of various financial entities. Myanmar’s new “grey list” designation will inevitably increase the cost of doing business by complicating international financial transactions and bank transfers at a time Suu Kyi’s government seeks more foreign investment. Risk-averse foreign banks will also likely shy from establishing presences in the country due to already significant reputation and other risks, executives and investors say..."