MCRB Proposes Amendments to the forthcoming Companies Regulations to Support Myanmar’s Implementation of Anti-Money-Laundering and EITI Requirements
UPDATE: MCRB is grateful for the considered response dated 18 June 2018 received from the Director-General of DICA, U Aung Naing Oo on the question of Beneficial Ownership, and looks forward to further collaboration with DICA in the run-up to 2020 when Myanmar needs to be compliant on beneficial ownership under the Extractives Industries Transparency Initiative.
MCRB has submitted proposed amendments to the 2018 Draft Companies Regulations on which the Directorate of Investment and Companies Administration (DICA) is currently seeking input to the Regulations and accompanying sample forms, prior to the establishment of an online companies register which meets the requirements of the new Companies Law.
The proposals concern defining and acquiring information about Beneficial Ownership and Politically Exposed Persons through the company registration process. This is necessary to fully implement the definition of “ownership interest” under the Myanmar Companies Law S1 (xxii), and will also support implementation of Myanmar’s Anti-Money Laundering Law (2014) and implementation of the Myanmar Extractive Industries Transparency Initiative.
MCRB believes that the drafting of the Companies Regulations is a unique opportunity to simultaneously address several Myanmar government objectives:
Effective implementation of the 2017 Companies Law and the 2014 Anti-Money Laundering Law
Meeting the 2020 deadline for implementation of beneficial ownership requirements under Myanmar’s commitment to the Extractives Industries Transparency Initiative
Supporting the government’s commitment to combat corruption
Improving the international attractiveness of Myanmar as an investment destination
Facilitating responsible investment.
MCRB welcomes DICA’s continued practice of open consultation with stakeholders on the draft laws and regulations which it oversees. This contributes to improving the ‘ease of doing business’ in Myanmar through improving the quality of law-making. The consultation closes on 31 May.
MCRB has also submitted comments on the draft Insolvency Law which was open for consultation until 29 May.