Tokyo Seeks to Ease International Trade and Financial Transactions with Myanmar’s Military Junta Government

Japan’s initiative to remove Myanmar from FATF blacklist; Another influential Asian country supports the initiative

 

International | 1 November 2026

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Japan has taken steps to remove Myanmar from the Financial Action Task Force (FATF) blacklist, an international financial crime watchdog, in a bid to ease international trade and financial transactions with the country and expand economic ties, The Japan Times reported.

Japan is proposing to the FATF to lift the additional monitoring and stricter vetting requirements imposed on member countries on financial transactions with Myanmar, a senior Japanese government official and another source familiar with the matter said in a report published by Reuters on October 31.

Japan believes that removing Myanmar from the FATF blacklist could ease strict restrictions on international banking, investment and trade with the country, making it easier to do business in Myanmar and attract foreign investment.

Myanmar blacklisted after 2021 military coup

Myanmar’s military seized power in February 2021, overthrowing the elected government of Aung San Suu Kyi. The country has since been plunged into political instability, armed conflict, and international isolation.

Myanmar was placed on the FATF blacklist in October 2022 for failing to take necessary measures to prevent money laundering and terrorist financing. The official name of the list is ‘High-Risk Jurisdictions Subject to a Call for Action’.

Currently, the list includes the names of Iran and North Korea, in addition to Myanmar.

FATF member countries are instructed to exercise extra caution and strict scrutiny when conducting financial transactions with blacklisted countries. However, the organization has also directed that humanitarian aid, legitimate non-profit activities, and remittances of expatriates not be unduly hindered.

Concerns about money laundering and online fraud

Despite efforts to remove Myanmar from the blacklist, international concerns remain about the country’s economic crime situation.

The proliferation of drug production and trafficking, organized online fraud centers, and illicit financial transactions, particularly in the Golden Triangle region, has become a cause for international concern. Some of these fraud centers are also alleged to have links to armed groups affiliated with the military junta.

The FATF’s June assessment acknowledged some progress in Myanmar, but noted serious shortcomings in investigating money laundering cases and bringing perpetrators to justice. The organization also expressed concern about illicit money flows generated by cybercrime.

Japan and US to rebuild ties with Myanmar

Japan’s move to remove Myanmar from the blacklist is seen as part of a larger effort to rebuild international relations with the country’s military government.

While many Western companies have pulled out of Myanmar since the coup, Japanese companies have maintained a significant business presence in the country. Japan believes that removing Myanmar from the FATF blacklist will ease the international business and investment environment in the country and create opportunities for economic recovery.

Meanwhile, the United States also held direct talks with Myanmar’s military-backed government last month, in what is considered the highest-level contact between the two sides since a 2021 coup. While the talks focused on cracking down on online fraud, there is also the possibility of future talks on Myanmar’s vast rare earth resources. The two countries also held secret meetings in Tokyo earlier this month, Reuters reported.

Along with Japan, at least one other influential Asian country has also taken a position in favor of removing Myanmar from the FATF blacklist, a source said, without naming the country.

Final decision still uncertain

The FATF’s last regular plenary meeting of 2026 is being held in Paris. A spokesperson for the organization’s secretariat said that the meeting’s discussions are confidential and any changes to the blacklist will be announced after the meeting.

However, it is not yet certain whether Myanmar will be removed from the list immediately after this Japanese initiative.

While Japan’s move has signaled its interest in normalizing economic relations with Myanmar, it has also raised new questions about international financial oversight and human rights. Especially since the military coup, when the country is still plagued by conflict, online fraud, and allegations of illegal financial activities, the move to remove it from the blacklist before necessary reforms and accountability are in place could spark international controversy.