Huge sums of foreign cash entering Myanmar illegally could have a detrimental effect on the economy, presidential advisor Dr Aung Tun Thet told Mizzima on August 27.
Dr Aung Tun Thet, a presidential advisor in the economy, was responding to a report in the China Securities Journal that said about CNY200 billion (about K31.7 trillion or US$32.5 billion) was flowing into Myanmar from China every year.
The report said some of money was being sent into Myanmar for money laundering purposes.
“A lot of foreign currency coming into the country is a good thing as long as it is legal, otherwise it might lead to inflation and other negative consequences,” said Dr Aung Tun Thet.
The illegal flow of money into Myanmar could result in lost taxes and revenue for the government and exorbitant prices for real estate and jewellery, he said.
“If we cannot be confident about the source of the money, it may be laundered," Dr Aung Tun Thet said. "Drastic action must be taken against this."
The Bureau of Special Investigation's U Thu Yeing Aung told Mizzima on August 27 that the agency was collaborating with the Financial Investigation Unit to counter money laundering by monitoring airports, ports and border trade posts.
“Such things are difficult to police but we have instructed banks and trade organisations to inform us whenever transactions are made above a certain threshold,” said U Thu Yeing Aung.
