According to a new report by the United Nations’ Special Rapporteur on Myanmar, Thai banks have become significant players in funding arms for the Myanmar military over the past year. The report, presented by UN Rapporteur Tom Andrews, highlights that Thai financial institutions were involved in transactions amounting to $120 million for weapons and related materials exported to Myanmar during the 2023-24 fiscal year. This funding has been instrumental in sustaining the junta’s campaign of violence against the people of Myanmar.
Despite international efforts to isolate Myanmar’s State Administration Council (SAC), the junta has continued to access necessary funds and weaponry to wage war against anti-coup forces. While exports of military supplies from Singapore saw a dramatic decrease—from over $110 million to just over $10 million in the past year—and supplies from Russia and China also declined, Thailand has emerged as the primary source of military supplies for the SAC through the international banking system.
Andrews’ report, titled “Death Trade: How Banks and Governments Enable the Military Junta in Myanmar,” identifies 16 banks across seven countries that processed transactions linked to Myanmar’s military procurement over the past two years. Additionally, 25 banks provided correspondent banking services to Myanmar state-owned banks under junta control. This financial infrastructure has enabled the junta to continue systematic human rights violations, including aerial attacks on civilians.
Financial Institutions in Thailand Facilitate Major Arms Transactions
Since the military coup in 2021, which ousted an elected government, Myanmar has been plunged into chaos, sparking financial sanctions from Western countries targeting the military, banks, and associated businesses. The ongoing conflict has escalated into a full-blown civil war, with the military accused of conducting airstrikes on both insurgents and civilians as it struggles to maintain control over large areas of the country.
The report documents that the junta imported weapons, dual-use technologies, manufacturing equipment, and other materials worth $253 million in the fiscal year ending March 2024, a reduction of one-third from the previous year. This decline is attributed to Singapore’s efforts to curb its companies from aiding the military regime. Andrews points out that these sanctions and international efforts can significantly impact the junta’s ability to resupply, thereby limiting its capacity to launch deadly attacks.
Despite the accusations of atrocities, Myanmar’s military denies targeting civilians, labeling its operations as efforts to combat “terrorists.” Officials have downplayed the impact of sanctions, suggesting they merely delay the military’s plans to restore democracy.
The report further explores purchases by entities controlled by Myanmar’s defense ministry, identifying $630 million in military procurement between 2022 and 2024. Notably, Thai firms have partially filled the supply gap created by Singapore’s reduced exports. In the 2023 fiscal year, companies registered in Thailand transferred weapons and related materials worth $120 million, up from $60 million the previous year.
Thai banks have played a crucial role in facilitating these transactions. For instance, Siam Commercial Bank processed just over $5 million in transactions related to Myanmar’s military in the year ending March 2023, but this figure surged to over $100 million the following year. In a notable example, Thailand-registered companies became the SAC’s source for spare parts for its Mi-17 and Mi-35 helicopters, previously supplied by Singapore-registered companies. These helicopters have been used for transporting soldiers and conducting airstrikes on civilian targets, including the April 2023 attack on Pazigyi village in Sagaing region, which killed approximately 170 people, including 40 children.
In response to these revelations, Thai Prime Minister Srettha Thavisin stated in an April interview with Reuters that Thailand would not take sides in the conflict and would address all concerns impartially. The Myanmar military justified the Pazigyi village strike by claiming it targeted members of the armed resistance.
The report underscores the complex and often hidden financial networks that enable the Myanmar military’s continued violence. It calls for heightened scrutiny and regulatory measures to prevent further funding of the junta’s military operations. As the international community seeks to pressure the Myanmar regime, the role of financial institutions in facilitating these transactions comes under increasing scrutiny, highlighting the need for comprehensive global cooperation to address these challenges.
