The ongoing tribulations of banking in Myanmar

[SeaVisionBurma]

Banking for foreigners in Myanmar isn’t easy. Despite apparent progress in the opening up of the economy, things have not improved much in the past year in this respect.

From The Myanmar Times, by Andrew Wood

Photo: Irrawaddy.org

ATM machines are now available, but can be unreliable and costly to use, while some users have reported fraud.

Part of the reason is the long removal of the Myanmar kyat from international markets. A sudden transition to the free movement of currency is highly likely to lead to the sharp depreciation of the kyat and consequent damage to the economy.

This could include the flight of capital out of the country, setting back the foreign direct investment (FDI) program.

Though the number of foreign organisations and individuals in Myanmar wanting access to overseas banks is growing, the demand is not high enough to bring about improvements.

Read the full article here: http://www.mmtimes.com/index.php/business/9501-the-ongoing-tribulations-of-banking.html

[SeaVisionBurma]

Nonsense post removed.

[onthemoon]

I just came back from YGN to BKK this evening. ATMs dispense currencies in either MMK or USD, you have to look fist, and I had no problem with my BBL ATM card. I may have been lucky, so I give the author the benefit of the doubt.

The attitude of some foreign banks doesn’t make things any easier. Some refuse to open an account for anyone living in Myanmar, and at least one British-run bank will close the account of anyone who informs them that they live here.

Not a Myanmar problem, but time to change away from that "British-run bank" without a name, I'd say.

New regulations designed to prevent tax evasion (FATCA) cause many international banks to refuse to deal with United States citizens at all.

Where does he get that information, I wonder. The US Exim bank announced last Thursday that they will offer loans to US companies investing in Myanmar. Which international bank will refuse to deal with US citizens if the US Government has no problems with Myanmar?

Overseas, only one Thai bank accepts non-resident expatriates.

I am now convinced that the author does not know what he is talking about.

[manhattan55]

My apologies for being clumsy with the quoting technique.

I just came back from YGN to BKK this evening. ATMs dispense currencies in either MMK or USD, you have to look fist, and I had no problem with my BBL ATM card. I may have been lucky, so I give the author the benefit of the doubt.

The attitude of some foreign banks doesn’t make things any easier. Some refuse to open an account for anyone living in Myanmar, and at least one British-run bank will close the account of anyone who informs them that they live here.

Quote: "Not a Myanmar problem, but time to change away from that "British-run bank" without a name, I'd say."

Reply: With some foreign banks it is still a problem, as long as the US keeps Myanmar on its sanctions list. The US has only suspended, not revoked its sanctions. Other banks, notably UK banks, follow suit.

New regulations designed to prevent tax evasion (FATCA) cause many international banks to refuse to deal with United States citizens at all.

Quote: "Where does he get that information, I wonder. The US Exim bank announced last Thursday that they will offer loans to US companies investing in Myanmar. Which international bank will refuse to deal with US citizens if the US Government has no problems with Myanmar?"

Reply: The fact that international banks have begun to restrict their business dealings with US expats is an unfortunate reality. It is due to the heavy administrative burden imposed on foreign banks under the Foreign Account Tax Compliance Act (FATCA). FATCA compels US citizens living abroad and the foreign financial institutions they bank with to report their financial assets to the IRS. This is to put a lid on tax evasion. Currently, FATCA is expected to be implemented this year but another delay may be possible. Apparently, Republicans in Congress are pushing back against the legislation.

Overseas, only one Thai bank accepts non-resident expatriates.

Quote: "I am now convinced that the author does not know what he is talking about."

Reply: It is very difficult for non-resident expats to open an account with Thai banks in Thailand. There is at least one bank which will do it, but not without a proper introduction by a third party in order to satisfy the requirements of the opening bank.