Well over half of all money flowing into Myanmar is being invested in the real estate sector, according to Aye Lwin, joint-secretary of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI).
The joint-secretary revealed this during talks between police in the Financial Investigation Unit and UMFCCI members on the anti-money laundering law and anti-terrorism funds law, held at the UMFCCI on August 22.
Aye Lwin said: “The inflow of money into the local real estate market far exceeds 50 per cent of the total inflow. That is to say, low-interest money from neighbouring countries is flowing into domestic banks where higher interest is being paid. Those who manipulate the markets only for the use of bank interest are said to be money launderers. We must take legal action against them.”
After the Thein Sein government introduced economic reforms in 2012, foreign investment in the country was less than $4 billion annually, but double the amount during the time of the previous government, according to the Myanmar Investment Commission (MIC). Funds being invested in the real estate sector totaled less than $500 million a year. But over the past two years, the inflow of investment into this sector has been skyrocketing.
People in the real estate trade have criticised that the inflow of money, claiming it comes from the trade in narcotic drugs, corruption or illegal sale of gems and timber.
Myanmar remains on a list compiled by the Money Laundering-Financial Action Task Force (FATF) as the international agency says the country still needs to tackle money laundering and funds being used for terrorism.
Myanmar is likely to accept four of 40 points noted in February 2012 including passing an anti-money laundering law and a law against the funding of terrorism. But the country is not yet in a position to implement the remaining 36 points, according to the FATF
by ARNO MAIERBRUGGER