Major Thai banks defended themselves against criticism that they facilitated weapons purchases by the Myanmar junta, saying they lacked the capacity to investigate all transactions that may be used for such purchases.
On Thursday, representatives of the lenders told a parliamentary committee, however, that they strictly followed existing regulations.
A UN expert’s report last month said that companies registered in Thailand utilised Thai banks to transfer weapons and related materials worth US$120mil in the 2023 fiscal year to Myanmar, compared with US$60mil the year before.
These transactions blunt global efforts to isolate Myanmar’s ruling junta, which is facing its biggest challenge since taking power in a 2021 coup, with an nationwide armed resistance gaining ground on multiple fronts and a wilting economy.
A junta spokesman did not respond to a call seeking comment.
Thailand’s parliamentary committee on national security called in representatives of five banks after the report by the UN special rapporteur on the situation of human rights in Myanmar, Tom Andrews, highlighted the role of Thai entities.
Pongsit Chaichutpornsuk, Senior Executive Vice President at Krung Thai Bank, said lenders have strictly complied with regulations but find it difficult to investigate indirect transactions such as those potentially made to buy fuel.
“This is beyond what we need to know, the banks do not have this kind of investigators,” said Pongsit, who was addressing the committee on behalf of the Thai Bankers’ Association.
All commercial banks would comply if the government and regulators makes it clear which entity they cannot do business with, he added. — Reuters
