Thai Banks Under Fire for Alleged Role in Myanmar Arms Transfers

Major Thai banks defended themselves against claims they facilitated weapons purchases by the Myanmar junta. They stated the inability to investigate all transactions but assured compliance with regulations. A U.N. expert’s report highlighted their role in transferring $120 million worth of weapons in 2023 to Myanmar. The Thai parliament is probing further.

Major Thai banks defended themselves on Thursday against claims that they facilitated weapons purchases by the Myanmar junta. They argued that they lacked the capacity to investigate all transactions potentially used for such purchases, while assuring they strictly followed existing regulations.

According to a U.N. expert's report, companies registered in Thailand used Thai banks to transfer $120 million worth of weapons and related materials to Myanmar in the 2023 fiscal year, doubling the amount from the previous year. These findings hinder global efforts to isolate Myanmar's ruling junta, facing sustained armed resistance and an economic downturn since their 2021 coup.

Representatives from Krung Thai Bank and other major lenders testified before Thailand's parliamentary committee on national security, stressing compliance with regulations and the difficulty of tracking indirect transactions. The Bank of Thailand announced it is coordinating with the Anti-Money Laundering Office to investigate further, with a promise to tighten measures if necessary.

The committee's chairman, Rangsiman Rome, urged the adoption of Singapore as a model for addressing these issues and pressed for a report within 30 days. He stressed that using the Thai banking system to facilitate arms deals for the Myanmar junta is unacceptable.

(With inputs from agencies.)