Japan is lobbying the Financial Action Task Force (FATF) to take Myanmar off its blacklist so that companies can do business there more easily, according to The Japan Times.

The push is the latest indication that some major economies want to end the isolation of Myanmar's military-backed government. The army seized power in a 2021 coup, and the country continues to face scrutiny over scam centre operations and illicit finance. Delisting would loosen the checks now applied to commercial dealings with Myanmar.

Tokyo wants the watchdog to scrap a requirement that its member states carry out enhanced screening of financial transactions involving Myanmar. The measure is designed to guard against money laundering and the financing of terrorism. A senior Japanese government official and a second person with knowledge of the matter described Japan's position. 

A spokesperson for the FATF Secretariat confirmed that confidential meetings were ongoing, with any blacklist updates to be announced following their conclusion on Friday. Myanmar’s military-backed government did not respond to requests for comment.

Myanmar was blacklisted by FATF in October 2022 following post-coup turmoil that fuelled drug trafficking and industrial-scale scam centres. Though the government claims to be tackling cyberfraud and narcotics, recent reports reveal it imported sanctioned Iranian jet fuel using forged documentation.

Japan is leading efforts to remove Myanmar from the FATF blacklist to facilitate business activity and economic recovery, aligning with wider international re-engagement following recent US-led talks in Naypyidaw.

Despite Min Aung Hlaing remaining under US sanctions for human rights abuses, Japan advocates for removal to ease commercial transactions. The FATF previously noted some progress by Myanmar, yet highlighted ongoing concerns regarding cyberfraud and the urgent need to prosecute money laundering.