The Myanmar government has enacted the Private Security Services Law on 18 February, granting private security firms the right to apply for a license to carry weapons and ammunition while mandating cooperation with state security agencies when required.
The law, signed by junta chief Min Aung Hlaing, requires private security firms to obtain a license within six months of its enactment. Aimed at tightening restrictions and ensuring systematic cooperation with state security forces, the law seeks to prevent the misuse of private security services.
The junta is currently integrating private security firms into its security operations. The new legislation mandates that licensed companies cooperate with military security organizations in coordination with relevant supervisory committees.
Additionally, security firms must provide a full list of male and female security personnel along with their personal information. The junta reserves the right to inspect and, if necessary, conduct training courses for private security personnel.
Employees of private security firms are required to report any information deemed harmful to national security and law and order during security operations. Failure to do so can result in up to two years in prison, a fine of 300,000 kyats, or both. The Central Committee will review applications for weapon and ammunition licenses before seeking approval from the National Defence and Security Council.
Businesses or subsidiaries employing more than 10 private security personnel, even if unrelated to private security services, must also obtain a permit. Foreign security firms operating in Myanmar must employ at least 75% Myanmar nationals as security personnel.
It also outlines the crimes and penalties, stating that anyone who operates without a license, purchases, sells, possesses, or transfers a business or license without the approval of the Central Committee will face a maximum prison sentence of three years and a fine of up to 10 million kyats. For a company or organization, the fine will range from a minimum of 100 million kyats to a maximum of 300 million kyats.
Refusal to cooperate with the junta in security matters is punishable by up to two years in prison or a fine of 50 million kyats. Companies in violation will face fines between 50 and 100 million kyats.
According to the law, the junta has mandated that license applicants must deposit at least 100 million kyats as business insurance with the Myanmar Economic Bank for the duration of their operation. In the case of a foreign company, the deposit must be made in foreign currency, equivalent to 100 million kyats, as a fixed deposit.
According to the Myanmar Centre for Responsible Business’s 2022 report, over 120 private security firms operate in Myanmar, with 115 registered under the Directorate of Investment and Company Administration (DICA).
Following the 2021 coup, China proposed a joint Myanmar-China security company, leading to the junta forming a working committee in October 2024 to draft a memorandum of understanding for its establishment.
