Uncovering the FATF

This cartoon by JMP touches on the recent report by the Financial Action Task Force (FATF), which made international news by placing Myanmar on its blacklist.

While the move is aimed at pressuring the military regime to take stronger action against money laundering, terrorist financing, and proliferation financing, it also has unintended consequences for the common people, which is the underlying meaning of the cartoon.

One of the major consequences of this report is that it will lead to increased scrutiny of financial transactions involving Myanmar, which can also include remittances and humanitarian aid. The enhanced due diligence measures that FATF members and other jurisdictions are urged to apply can make it more difficult and costly for individuals and organizations to send money to and receive money from Myanmar. This can have a severe impact on the livelihoods of ordinary people who rely on remittances and aid to survive.

Furthermore, the inclusion of Myanmar on the FATF blacklist can also have a negative impact on the country's economy. It can make it harder for Myanmar to access international financial markets, and foreign investors may be more hesitant to invest in the country. This can lead to a slowdown in economic growth and development, which can have a ripple effect on the lives of ordinary people.

Of course, this also falls directly in line with the thinking of many democratic activists, who wish to see the country ungovernable, with the thinking that this could drive the military out of power. In this regard, many have welcomed the work of the FATF in adding yet another obstacle to the military's quest for power.