The United Nations Special Rapporteur on the situation of human rights in Myanmar revealed on June 26 that foreign banks are allegedly complicit in the military operations in the country.
The report, “Banking on the Death Trade: How Banks and Governments Enable the military Junta in Myanmar,” identified 16 banks in seven countries processing transactions linked to the Myanmar military junta’s procurement of weapons and related materials, with an additional 25 providing banking services to state-owned banks under junta control.
Special Rapporteur Thomas Andrews pointed out the significant role these financial institutions play in supporting the junta’s operations, including attacks on civilians.
“By relying on financial institutions that are willing to do business with Myanmar state-owned banks under its control, the junta has ready access to the financial services it needs to carry out systematic human rights violations, including aerial attacks on civilians,” he said.
Andrews called for these banks to cut ties with the junta, emphasizing their obligation to avoid facilitating crimes, including war crimes and crimes against humanity.
The report notes a reduction in Myanmar’s military procurement through the formal banking system, from US$377 million to $253 million in one year, suggesting the junta’s increasing isolation.
However, Andrews noted the junta’s methods to bypass sanctions by exploiting regulatory gaps, switching financial institutions, and leveraging the lack of coordination and enforcement among member states.
The report also detailed a shift in weapon supply sources within ASEAN. After identifying Singapore as a major source, an investigation resulted in a 90 percent decrease in weapon flows from Singapore-registered companies.
In contrast, procurement from Thailand has increased, with the total value of weapons and military supplies from Thailand-registered suppliers more than doubling in a year, significantly facilitated by the Siam Commercial Bank.
“The good news is that the junta is increasingly isolated. The bad news is that the junta is circumventing sanctions and other measures by exploiting gaps in sanctions regimes, shifting financial institutions, and taking advantage of the failure of Member States to fully coordinate and enforce actions,” Andrews said.
He encouraged Thailand to adopt measures similar to Singapore’s to reduce the Myanmar military’s procurement capabilities significantly.
Andrews also emphasized the importance of banks adhering to their human rights obligations and the need for targeted sanctions against networks supplying jet fuel to the junta and the Myanma Economic Bank, which is not currently sanctioned.
The conflict in Myanmar has resulted in over 5,000 civilian deaths since the 2021 coup, with at least three million displaced and more than 20,000 political prisoners.
Military airstrikes against civilian targets have increased significantly, as the junta continues to lose military outposts, territory, and troops to resistance forces.
Andrews called for a coordinated international response to tighten sanctions and enforce measures to pressure the junta and reduce its military capacity.
