Central Bank of Myanmar (CBM) took legal actions against those involved in illegal digital currency conversion, manipulating the foreign exchange market and operating Hundi businesses without holding a valid licence, according to a notification released on 1 August 2024.
Nonetheless, illegal virtual currency conversion, illegal digital exchanges and illegal Hundi money transfers are subjected to legal actions under provisions stipulated by the Anti-Money Laundering Law and Financial Institution Law, CBM notified on 24 May 2024. As of 4 June, 39 individuals have been found convicted of those illegal businesses, and legal action has been taken against them.
CBM also temporarily froze bank accounts and digital wallet pay accounts of 93 individuals executing illegal businesses. Furthermore, law enforcement authorities have been inspecting and prosecuting those violating the rules.
Therefore, the individuals need to follow the rules, regulations and directives of the CBM. CBM revoked the licences of money changers as they failed to comply with the CBM-issued regulations and directives. A total of 194 licences of money changers were cancelled between 3 January 2023 and 1 August 2024.
With a view to facilitating the purchase of foreign currencies in addition to internationally accepted debit cards and credit cards and curbing foreign exchange market manipulation by illegal money changers, those studying abroad, working abroad and travelling abroad for medical treatment are entitled to buy foreign currencies that are equivalent to US$300-500 per person at the authorized banks’ foreign exchange counters and money changers at the Yangon International Airport starting from 31 May 2023, while those going on a pilgrimage and those leaving for the designated countries to attend the meeting as per the invitations of the foreign governments and institutions are allowed to buy the petty cash from 18 August 2023. Those authorized money changers sell a US dollar by adding K10 to the CBM daily online trading rates.
Additionally, KBZ Bank, AYA Bank PCL, UAB banks, Eastern Lad Co Ltd, and Golden Money Services Co Ltd jointly sold US$755,796 as petty cash in four big cities (Nay Pyi Taw, Mandalay, Yangon and Taunggyi) between 4 March 2024 and 30 July 2024 under the special programme. CBM issues reference exchange rates and foreign exchange trading activities on its online portal, www.cbm.gov.mm. Yet, some are still found spreading malicious news through social platforms (Facebook, Telegram, Viber) in an attempt to manipulate the foreign exchange market. The authorities inspected and prosecuted those engaged in Nuggets (Viber group), Seven Star dollar exchange Update and $Dollor Exchange Service MM, CBM stated.
Therefore, CBM warned that individuals should transact foreign currencies through authorized dealers (private banks) and money changers. — NN/KK
