Banking association denies Thai banks supporting Myanmar military
Thai Bankers’ Association asserts compliance with international standards, as UN report links Siam Commercial Bank with questionable transactions with the junta
The Thai Bankers’ Association vehemently denied that Thai banks had any connections with the Myanmar military junta after the UN special rapporteur’s report accusing a local bank of doing business with junta leaders was released on Wednesday.
“Thailand has now become the [junta’s] leading source of military supplies purchased through the international banking system,” said the report titled “Banking on the Death Trade: How Banks and Governments Enable the Military Junta in Myanmar”.
The report also said that Siam Commercial Bank (SCB) facilitated about 80% of the financial transactions for accounts linked to the military government. The volume of financial transactions through SCB rose from $5 million in 2022 to $100 million in 2023.
However, the association fervently denied the connection, saying it adheres strictly to human rights principles and corporate responsibility. It also said that all banks in Thailand comply with laws overseen by Thailand’s regulatory bodies, namely the Bank of Thailand and the Anti-Money Laundering Office, which ensure the integrity of the country’s financial system.
It added that member banks maintain dedicated departments proficient in both local and international regulations, actively monitoring high-risk entities listed on transaction prohibition databases. They update their procedures continuously to uphold rigorous standards, it said.
“Thai commercial banks have a clear policy against supporting Myanmar’s military in purchasing weapons or military equipment. The aim is to prevent potential human rights violations through banking transactions,” the association stated.
Nikkei Asia reported on Wednesday that Myanmar’s formal banking transactions for arms procurement via international channels had dropped to $253 million in 2023 from $377 million in 2022, with reduced weapon transfers from China and increased transactions involving Thailand and India.
Meanwhile, the United Nations investigation identified Thai banks as new intermediaries for Myanmar’s military government after Singapore imposed stringent measures against Myanmar-linked accounts in its major banks.
The report by Tom Andrews, UN special rapporteur on human rights in Myanmar, says several registered companies in Thailand supplied arms and other related equipment worth over US$120 million (4.41 billion baht) to the State Administration Council (SAC)’s military units last year, doubling from $60 million in 2022.
Key military supplies from Thailand included Mi-17 and Mi-35 attack helicopters, which Myanmar previously obtained through Singapore.
The release of the special rapporteur's report coincides with Thailand's efforts to secure a seat on the United Nations Human Rights Council in October.
