The Central Bank of Myanmar (“CBM”) has introduced a new regulatory framework for foreign remittance businesses under Notification No. 18/2026 dated 28 April 2026 (the “2026 Regulation”), replacing the previous regime under Notification No. 21/2019.
The new framework significantly increases compliance obligations, raises licensing costs, and removes fixed transaction limits, giving the CBM broader discretion to regulate remittance flows through directives.
Under the new regulation, businesses applying for a foreign remittance licence are required to pay an initial licence fee of MMK 3 million, increased from MMK 1 million under the previous framework. The annual operating fee has also increased from MMK 100,000 to MMK 300,000. However, the licence renewal fee remains unchanged at MMK 1 million.
The 2026 regulation continues to require licence holders to maintain a security deposit of MMK 100 million in an escrow account approved by the Central Bank at an authorised dealer bank. In addition, businesses must maintain operational funds in a separate revolving fund account. The updated regulation also introduces a new restriction limiting operators to opening no more than two bank accounts per foreign country for remittance operations.
Under the previous 2019 regulation, individual remittance transactions were capped at USD 1,000, while the total monthly remittance amount per person could not exceed USD 5,000. The 2026 regulation removes these fixed monetary limits. Instead, inward remittances must comply with the rules of the sending country and relevant international organisations, while outward remittances must follow directives issued by the Central Bank of Myanmar from time to time. This change provides the Central Bank with greater flexibility to regulate remittance activities through directives rather than fixed thresholds stated in the regulation itself.
The updated framework places significant emphasis on anti-money laundering (“AML”) and counter-terrorism financing (“CTF”) compliance. All licence holders are required to appoint a dedicated Compliance Officer responsible for ensuring compliance with AML and CTF laws and regulations.
The regulation also introduces more detailed Know Your Customer (“KYC”) obligations. Remittance businesses must collect and verify detailed customer information before processing transactions. For individuals, this includes information such as full name, NRC or passport details, occupation, permanent address, and the purpose of the transfer. For NGOs and INGOs, businesses must also collect organizational information, including the organization name and headquarters address.
In addition, operators are required to screen customers against terrorist watchlists issued by the United Nations and the Central Bank of Myanmar. If a match is identified, the relevant funds must be frozen immediately in accordance with applicable regulations.
The 2026 regulation further introduces enhanced monitoring obligations for transactions, or related transactions, amounting to USD 10,000 or more, which must be reported to the Financial Intelligence Unit.
The previous 2019 regulation applied different record retention periods depending on transaction value. Transactions under USD 500 were only required to be retained for one year, while transactions exceeding USD 500 had to be retained for five years. The 2026 regulation simplifies this requirement by introducing a single retention period. All transaction records and customer information must now be maintained for at least five years regardless of transaction value.
The updated regulation also provides businesses with a longer period to commence operations after obtaining a licence. Under the previous framework, a licence could be suspended if the business failed to commence operations within three months from the date of issuance. The 2026 regulation extends this period to one year, giving newly licensed businesses greater flexibility to establish their operations before commencing remittance activities.