Uncovering the Illicit Financial Ties Fueling Myanmar's Military Junta

In a damning report, the United Nations Special Rapporteur on the situation of human rights in Myanmar has exposed the intricate web of financial institutions enabling the military junta to continue its brutal crackdown on pro-democracy forces and ethnic minority groups. The report sheds light on how Thai banks have emerged as the primary conduit for the junta's international financial transactions, allowing it to procure arms and sustain its violent campaign against the people of Myanmar.

Exposing the Junta's Financial Lifeline

Shifting Suppliers, Persistent Procurement

The report by Tom Andrews, the UN Special Rapporteur, tracks the military junta's ability to circumvent sanctions and continue its weapons procurement despite the withdrawal of business from Singapore-based entities. As previous sources of financial services and military hardware have been blocked by international sanctions, the junta has turned to Thai banks as its new financial lifeline.The report reveals that over the past year, 16 banks located in seven countries have processed transactions related to the junta's military procurement, while 25 banks have provided correspondent banking services to Myanmar's state-owned banks since the coup. This extensive network has enabled the junta to sustain its weapons supplies and carry out its increasingly violent campaign against the people of Myanmar.

The Rise of Thai Banks in the Junta's Financial Ecosystem

The report singles out Thai banks as playing a major role in facilitating international business for Myanmar's military regime. It cites the example of Siam Commercial Bank, which saw a significant increase in its transactions related to Myanmar military procurement, from just over million in the 2022 financial year to more than 0 million in the following year.This shift in financial services has had a direct impact on the junta's ability to acquire military equipment. The report states that many of the junta's purchases previously made from Singapore-based entities, including parts for Mi-17 and Mi-35 helicopters used to conduct airstrikes on civilian targets, are now being sourced from Thailand.

The Decline of Singapore's Role and the Rise of Thailand's Involvement

The report highlights the changing dynamics in the junta's financial network. While Singapore-based banks had previously facilitated over 70% of the military junta's purchases that passed through the formal banking system in the 2022 financial year, this percentage had dropped to under 20% by the following year.In contrast, exports from Thailand-registered entities more than doubled, from just over million to nearly 0 million, during the same period. This shift in the junta's financial operations has enabled it to continue its procurement of weapons and military supplies, despite the efforts of the international community to isolate and sanction the regime.

The Devastating Toll of the Junta's Reign

The report paints a grim picture of the human cost of the junta's actions. It states that more than 5,000 civilians have been killed since the military takeover, 3 million people have been displaced, and over 20,000 political prisoners have been taken. The junta's reliance on financial institutions willing to do business with its state-owned banks has allowed it to continue its systematic human rights violations, including aerial attacks on civilians.The report's findings underscore the urgent need for the international community to take decisive action to cut off the junta's access to financial services and disrupt its ability to procure weapons. As the report states, "International banks that facilitate transactions that include Myanmar state-owned banks are at high risk of enabling military attacks on Myanmar civilians. I urge them to stop doing so. Banks have a fundamental obligation to not facilitate crimes -– and this includes war crimes and crimes against humanity."