New Amendments to the Foreign Exchange Management LawOctober 27, 2021
The State Administration Council passed Law No. 57/2021 on 6 October 2021 (“Law”) amending certain sections of the Foreign Exchange Management Law 2012 (“FEML”).
The Law amends Section 41 of the FEML which previously restricted ‘foreign exchange licensees’ from violating any rules, regulations, procedures etc. issued under the FEML. The Law has removed the term ‘foreign exchange licensees’ and replaced it with ‘anyone’.
Furthermore, the Law also adds a sub-section to Section 44 which stipulates that persons who violate Section 41 will be punished with imprisonment up to 1 year or fine or both.
The Law appears to have been passed to, among other things, increase regulatory control over foreign exchange transactions in the informal markets which have consequently affected the USD-MMK exchange rates.