Fraudulent Transactions in Myanmar’s Banks Exposed: UN Report Reveals Thai Banks Enable Military Junta’s War Efforts

A recent report by Tom Andrews, the United Nations special rapporteur on the situation of human rights in Myanmar, has shed light on how Thailand-based banks have become a key supplier of international financial services for Myanmar’s military government. The report, titled “Banking on the Death Trade: How Banks and Governments Enable the Military Junta in Myanmar,” reveals that Thai banks have taken up the slack left by the withdrawal of Singaporean firms’ business with the military junta.

Banking Network Enables Military Junta

The report charges that companies in Thailand have enabled the military junta to continue procuring arms and equipment to carry out its bloody war against pro-democracy resistance forces and armed ethnic minority groups. The junta, formally known as the State Administration Council, has been able to sustain itself and its weapons supplies by engaging with a broad international banking network.

Key Findings

• 16 banks located in seven countries processed transactions related to SAC military procurement.
• 25 banks have provided correspondent banking services to Myanmar’s state-owned banks since the coup.
• Siam Commercial Bank carried out over $100 million in transactions related to Myanmar military procurement in FY2023.
• Exports from Thailand-registered entities more than doubled from FY2022 to FY2023, with many purchases previously made from Singapore-based entities now being sourced from Thailand.

The Role of Thai Banks

The report singles out Thai banks as playing a major role in facilitating international business for Myanmar’s ruling military. Andrews has called on international banks to stop facilitating transactions that include Myanmar state-owned banks, saying they are at high risk of enabling military attacks on Myanmar civilians.

Consequences of Inaction

Myanmar is now in a civil war, with over 5,000 civilians killed since the takeover, 3 million people displaced, and more than 20,000 political prisoners. The report’s findings have sparked concerns about the role of Thai banks in enabling the junta’s war efforts and the need for greater accountability from financial institutions.

Call to Action

Andrews has emphasized that “banks have a fundamental obligation to not facilitate crimes -– and this includes war crimes and crimes against humanity.” It is imperative that international banks take immediate action to prevent their services from being used to perpetuate human rights violations.