PUBLISHED: 25 Jul 2024 at 08:53
In a significant move, Thailand is set to establish a task force aimed at enhancing the due diligence capabilities of its financial institutions. This initiative is a proactive measure to prevent any banking transactions that could facilitate arms purchases and contribute to human rights abuses in Myanmar, according to an announcement from the Foreign Ministry.
This government initiative follows urgent discussions with commercial banks and state agencies, prompted by a UN expert’s recent report indicating a rise in funds being moved through Thai banks for military use against Myanmar’s civilian population.
The meeting focused on reviewing progress in investigating transactions potentially linked to the procurement of weapons and military supplies by the Myanmar government. A statement released late Wednesday highlighted the formation of a collaborative task force led by the Bank of Thailand and the Anti-Money Laundering Office. This task force will scrutinize the transactions and bolster the capabilities of Thai financial institutions.
Bank representatives earlier expressed to a parliamentary committee that, while they adhered to existing regulations, their current capacity to investigate all potentially weapon-related transactions is limited.
Myanmar continues to face intense civil conflict, with the military, which embarked on a coup in 2021 following a decade of democratic governance, battling a coalition of ethnic minority forces and pro-democracy activists loyal to an opposition government.
According to last month’s report from the UN special rapporteur on human rights in Myanmar, Thai-registered companies utilized local banks for transactions related to weapons and supplies valued at $120 million in the 2023 fiscal year—double the $60 million reported the previous year. The report emphasizes that these financial movements undermine global efforts to isolate Myanmar’s military, which is confronting unprecedented challenges since regaining control.
