Thailand to set up task force to prevent transactions for Myanmar arms

Krung Thai Bank PCL

25/07/2024 01:54

BANGKOK, July 25 (Reuters) - Thailand will form a task
force to enhance the due diligence capabilities of its financial
institutions in order to prevent  transactions by banks that
could lead to arms purchases and human rights abuses in Myanmar,
the foreign ministry said.
    The Thai government met with commercial banks and state
agencies to investigate such transactions after a U.N. expert
reported on a surge in money moved via Thai banks for weapons
that were used by the junta against the civilian population. 
    The meeting discussed progress made in investigating
transactions that may be linked to the purchase of weapons,
military supplies and the Myanmar government, the foreign
ministry said in a statement late on Wednesday.
    The Bank of Thailand and the Anti-Money Laundering Office
(AMLO) will establish a task force to investigate the
transactions and review measures to "further equip and enhance
the ability of Thai financial institutions," the statement said.
    Earlier this month, bank representatives told a
parliamentary committee that they had followed regulations but
lacked capacity to investigate all transactions that could be
used for arms purchases.
    Myanmar is embroiled in a civil war that pits the military,
which staged a coup in 2021 after a decade of democracy, 
against a loose alliance comprised of ethnic minority armies and
a resistance movement loyal to a shadow government. 
    Last month's report by the U.N. special rapporteur on the
situation of human rights in Myanmar said that Thai-registered
companies had used local banks to transfer funds for weapons and
related materials for Myanmar worth $120 million in 2023 fiscal
year, compared to $60 millions the year before.
    The report said those transactions were blunting global
efforts to isolate the military, which is facing its biggest
challenge since taking back power.

 (Reporting by Panu Wongcha-um)
 ((Panu.Wongcha-um@thomsonreuters.com; +6626488658;))