25-7-2024 (BANGKOK) In a decisive move to address concerns over the potential facilitation of arms purchases and human rights abuses in Myanmar, the Thai government has announced plans to establish a task force aimed at enhancing the due diligence capabilities of its financial institutions. This initiative comes in the wake of a United Nations expert’s report highlighting a surge in transactions conducted through Thai banks, suspected of enabling the procurement of weapons for the Myanmar junta.
The Thai Foreign Ministry, in a statement released late on Wednesday, revealed that the government had convened a meeting with representatives from commercial banks and state agencies to investigate transactions that could be linked to the purchase of arms, military supplies, and funding for the Myanmar government.
“The meeting discussed progress made in investigating transactions that may be linked to the purchase of weapons, military supplies, and the Myanmar government,” the ministry’s statement read, underscoring the gravity of the situation.
In a concerted effort to address the issue, the Bank of Thailand and the Anti-Money Laundering Office have been tasked with establishing a dedicated task force to conduct thorough investigations into the suspect transactions and review measures to “further equip and enhance the ability of Thai financial institutions” to detect and prevent such illicit activities.
The Thai government’s proactive stance comes in response to mounting international pressure and the damning findings of a report issued earlier this month by the United Nations’ special rapporteur on the situation of human rights in Myanmar.
According to the report, Thai-registered companies have exploited local banks to transfer funds amounting to a staggering US$20 million in the 2023 fiscal year, purportedly for the procurement of weapons and related materials for Myanmar’s military junta. This figure represents a significant increase from the previous year’s transfer of $60 million, highlighting the urgency of the situation.
The report further emphasizes that these transactions have effectively undermined global efforts to isolate the Myanmar military, which has faced its most formidable challenge since seizing power in a coup d’état in 2021, following a decade of democratic rule.
Thailand’s commitment to take decisive action against potential arms financing and human rights violations in Myanmar comes at a critical juncture, as the Southeast Asian nation grapples with a civil war that has pitted the military junta against a loose alliance comprised of ethnic minority armies and a resistance movement loyal to a shadow government.
While representatives from Thai banks have previously asserted their adherence to regulations, they have acknowledged a lack of capacity to thoroughly investigate all transactions that could potentially facilitate arms purchases.
