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Thailand aims to curb banking linked to Myanmar’s arms trade
Thailand has announced plans for a task force to oversee Thai banks and prevent transactions linked to arms purchases for Myanmar’s military regime, following a report highlighting the role of Thai banks in financing such deals.
The United Nations’ special rapporteur on human rights in Myanmar, Tom Andrews, has welcomed Thailand’s plan to establish a task force to help Thai banks scrutinize business dealings with Myanmar’s military regime for potential arms transactions.
- Thailand has announced plans for a task force to oversee Thai banks and prevent transactions linked to arms purchases for Myanmar’s military regime, following a report highlighting the role of Thai banks in financing such deals.
- International sanctions have led to a significant reduction in the Myanmar regime’s arms purchases through the global financial system, shifting the majority of arms-related banking from Singapore to Thailand.
- With the support of Thailand’s new task force and potential regulatory pressures, the Myanmar military regime may face challenges in finding alternative financing options for arms purchases, potentially impacting the regime’s ability to continue human rights violations.
This comes after Andrews’ report revealed Thailand’s role in financing arms purchases for the regime. The report highlights the impact of international sanctions in reducing the regime’s weapons purchases through the global financial system and the shift of arms-related banking from Singapore to Thailand.
Myanmar’s recent military purchases through Thailand included a wide range of items such as chemicals, machine tools, radios, and spare parts for fighter jets and helicopters. The junta is widely accused of using these purchases to deadly effect on civilian targets.
Thai banks, especially Siam Commercial Bank, played a significant role in enabling over $100 million in transactions for Myanmar military procurement in the fiscal year 2023. This has contributed to ongoing human rights violations and aerial attacks on civilians. The military junta shifted its financial services suppliers from Singapore to Thailand after facing sanctions, allowing it to continue procuring arms and military supplies despite international pressure.
The Bank of Thailand (BOT) has instructed financial institutions to comply with sanctions set forth by the Financial Action Task Force (FATF) and conduct enhanced due diligence for transactions involving high-risk countries to prevent money laundering and financing of terrorism.
Andrews hopes the task force will emulate Singapore’s actions in cutting off arms-related transactions with Myanmar’s military regime and urgently address the crisis. Thailand’s move is seen as a step towards addressing human rights concerns and may impact the regime’s ability to finance arms purchases. However, the regime may seek alternative means to continue its transactions, potentially facing higher costs and limitations.
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