Myanmar may end the week on an international finance watchlist. Two sources close to the Financial Action Task Force (FATF), a France-based financial monitoring agency, told Reuters that it may place Myanmar on its international “grey list” due to money laundering operations and generally weak regulations of its financial system. FATF has found “strategic deficiencies” in the country’s efforts to halt money laundering (especially by drug traffickers) and terrorism financing, according to Reuters. FATF will likely announce its decision this Friday, February 21st.

In Myanmar’s defense, U Kyaw Win Thein, the head of Myanmar’s Financial Intelligence Unit, told Reuters that the country has plans to improve its finance regulations and anti money laundering capacity. However, the inside sources said these plans would likely not be enough to keep Myanmar from the FATF grey list. Inclusion on the list would not outright forbid anyone from doing business with Myanmar, but it would be yet another in a growing list of red flags for international investors.

Myanmar is part of the “golden triangle” of Southeast Asian drug production and trafficking, with mainly opium, heroin and methamphetamines being manufactured in lawless frontier areas in the north and east. The drug trade often funds armed organizations, who conduct untold volumes of illegitimate border trade with Myanmar’s neighbors. At home, Myanmar suffers from notoriously poor corporate governance and economic oversight. In the International Finance Corporation’s 2018 Myanmar Corporate Governance Scorecard, Myanmar firms scored on average 30 percent, well under the overall ASEAN average of 69 percent.