Myanmar keyword: Central Bank of Myanmar (CBM)

March 20, 2020

On 12 March 2020, the Central Bank of Myanmar (“CBM”) issued Directive 1/2020 (the “Directive”) and reduced the maximum interest rates on secured and unsecured loans to 12.5% and 15.5% respectively.This marks a small deviation from Directive 1/2019, issued by CBM last year, when it announced maximum interest rates on secured and unsecured loans of […]

February 26, 2020

On 15 November 2019, the Central Bank of Myanmar (“CBM”) issued Directive 18/2019 on 15 November 2019 on customer due diligence. The directive sets out guidelines for customer due diligence, and mandates that banks develop an effective framework and practices in order to conduct risk assessments and manage money laundering and terrorism financing risks. Highlights […]

January 22, 2020

The Central Bank of Myanmar (“CBM”) has recently made changes to the offshore loan criteria that it has published on its website (see https://www.cbm.gov.mm/content/2066). Clearer wording has been added in terms of the differences in requirements for companies holding permits from the Myanmar Investment Commission (“MIC”) and non-MIC companies. Further updates have been made to terms […]

November 9, 2019

On 7 November 2019 the Central Bank of Myanmar issued announcement confirming that a third round of foreign bank licensing will be initiated and opened to foreign banks with representative offices in Myanmar (the “Announcement”). Pursuant to the Announcement, foreign banks will be able to apply either for a branch or for a subsidiary license, […]

May 8, 2019

The Central Bank of Myanmar (the “CBM”), by an announcement on 3 May 2019, noted that it does not recognize digital currencies as legal tender in Myanmar (the “Announcement”). The CBM further stated that any persons that engage in transactions involving digital currencies act at their own risk.  The Announcement, which is cautionary in nature, […]

February 6, 2019

Since the implementation of the new Myanmar Companies Law (“MCL”) in August, the so-called 35% rule has been subject to interpretation by each government Ministry. Slowly, we have been seeing updates from Ministries on whether they will allow 35% foreign shareholding in various sectors. On 29 January 2019, the Central Bank of Myanmar (“CBM”) issued […]

January 30, 2019

Looking back, it is evident that 2018 has seen a lot of changes in the Myanmar legal framework. There is also a number of developments that can be expected in the near future. Banking regulations Until early November, foreign bank branches could only provide banking services to foreign companies, i.e., companies incorporated in Myanmar with […]

January 29, 2019

Following the recent directive of the Central Bank of Myanmar (the “CBM”), interest rate caps of 13% and 16% shall apply for secured loans and unsecured loans,. The Directive provides that “the maximum interest rate … includes all other fees collectible in lump sum or in partial payments such as guarantee fees, management fees etc. […]

November 9, 2018

In an exciting development, the Central Bank of Myanmar (the “CBM”) on 8 November 2018 issued Directive No. 6/2018 (the “Directive”) which grants permission to foreign bank branches to extend banking services to local companies wholly owned by Myanmar nationals. As the reader may already be aware, there are 13 foreign bank branches operating in […]

July 31, 2018

In July 2017 the Central Bank of Myanmar (“CBM”) introduced a fresh set of four regulations (Notifications 16-19/2017 pertaining to capital adequacy, asset classification and provisioning, large exposures and liquidity ratio requirement respectively). Issued under the Financial Institutions Law 2016 (“Financial Institutions Law 2016”), for the most part these were reinforcements of the existing regulations […]

May 24, 2018

Per announcement from CBM dated 17 May 2018: “The Central Bank of Myanmar has issued a business license to Myanmar Credit Bureau Limited on 17 May 2018 to establish a credit bureau in the Republic of the Union of Myanmar. Myanmar Credit Bureau Limited may collect information regarding the repayment capacity and other related information […]

March 29, 2017

1. The legal system As the legal system of Myanmar has its roots in the English common law system, laws in Myanmar are similar to English law. 2. Are there restrictions on foreign investment ownership? The Myanmar Investment Commission (MIC) from time to time issues notifications and regulation covering investment by foreign investors in various […]