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

BANGKOK - 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 commercial banks and state agencies to investigate such transactions after a UN 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 July 24.

The Bank of Thailand and the Anti-Money Laundering Office 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 in July, 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 comprising ethnic minority armies and a resistance movement loyal to a shadow government.

The June report by the UN special rapporteur on the situation of human rights in Myanmar said Thai-registered companies had used local banks to transfer funds for weapons and related materials for Myanmar worth US$120 million (S$161 million) in the 2023 fiscal year, compared with US$60 million 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. REUTERS