ASIA/MYANMAR - UN report: Banking system finances equipment to continue conflict in Myanmar

Yangon (Fides Agency ) - Financial institutions must do more to prevent the Burmese military junta from acquiring weapons, said the Special Rapporteur on human rights in Myanmar, Tom Andrews, citing Thailand as the main new source of military supplies Myanmar receives through the international banking system. The Thai government responded that it would look into the UN report and emphasized that Thai banking institutions follow the banking protocols of the global financial system.
In the report titled "Banking on the Death Trade: How Banks and Governments Enable the Military Junta in Myanmar", Andrews points out that many Western governments (US, EU and other states) have imposed sanctions on the Burmese junta, which came to power in a coup in 2021, and notes that the international community's efforts to stop the flow of arms have also had some success in this regard. The supply of arms and technological production equipment (for military and civilian use) to Myanmar through the international banking system has fallen by a third, from $377 million in 2022 to $253 million in 2023, but the ruling military junta has sought to circumvent the restrictions while "Myanmar's armed forces systematically assault Myanmar civilians using powerful weapons of war obtained from abroad," Andrews said in the report. Ways used to circumvent restrictions include: varying suppliers of arms and military assets; exploiting some loopholes in the sanctions system; changing financial institutions; and taking advantage of the lack of clear political will on the part of some governments. These are all moves "to circumvent measures taken by the international community," said the rapporteur, who cited as examples two nations bordering Myanmar-Singapore and Thailand.
Meanwhile, Singapore, a major supplier of military equipment with close trade ties to Myanmar, has "formulated a clear policy of opposition to arms transfers", in line with the UN General Assembly resolution passed by a large majority after the 2021 coup. Exports of arms and related materials by Singapore companies or entities have dropped from $120 million in 2022 to $10 million in 2023.
Thailand, on the other hand, has no explicit stance against arms transfers to Myanmar, Andrews said, adding that exports from Thai-registered entities or companies have more than doubled in the same period, from $60 million to around $130 million. Among the military equipment purchased "are Mi-17 and Mi-35 helicopters used for airstrikes on civilian targets," he reported, calling Thailand "the regime's main source of military supplies purchased through the international banking system." Had Thailand responded in the same way as the Singapore government, "the Burmese military's ability to attack the Myanmar people would have been severely curtailed," he noted.
Andrews called on countries that support peace and respect for human rights in Myanmar to halt arms sales by their companies and urged financial institutions to freeze their relationships with Myanmar's state-owned banks.
The UN Rapporteur confirms that military exports from Russia and China to Myanmar have also decreased, while exports from India have remained constant, noting that some of the procurement of military equipment from these countries may have been shifted to informal channels or a market unregistered by the banking system.
Aside from the illicit trade considerations, however, Andrews' comments were mainly directed at the banking system, which allows the regime to buy goods and equipment for the continuation of the war through registered trade. According to the report, 25 banks have provided banking services to Myanmar's state-owned banks since the coup. "Banks have a fundamental obligation not to support crimes - and that includes war crimes and crimes against humanity," the report said.
"The good news is that the junta is increasingly isolated," said Andrews, who took stock of the civil war in Myanmar, which has been going on for over three years: more than 5,000 civilians killed, 3 million displaced and more than 20,000 political prisoners.
Pope Francis has spoken out several times in recent months about the conflict in Myanmar and the supply of weapons. "It is terrible to make money from death", but "unfortunately, the most profitable investments today are the arms factories", he said at the end of the general audience on May 1, in which he launched another appeal for efforts to achieve peace. The Pope had also warned at the 2024 Easter Mass: "Do not give in to the logic of weapons and armament. Peace is never made with weapons, but by stretching out our hands and opening our hearts".
(PA) (Fides Agency 28/6/2024)

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