The government plans talks with Thai commercial banks about improved screening of transactions allegedly used for weapons purchases by the Myanmar junta, Foreign Minister Maris Sangiampongsa said on Thursday.
Thai bank representatives last week told a House of Representatives committee that they had followed regulations but lacked the capacity to investigate all transactions that could be used for arms purchases.
They were responding to a United Nations expert’s report of a surge in the amount of money moved via Thai lenders — from $60 million in 2022 to $120 million in 2023 — for military procurement by Myanmar.
Some of the transactions involved weapons used by the junta against the civilian population, said the report by Tom Andrews, the UN special rapporteur on human rights in Myanmar.
Mr Maris told parliament on Thursday that talks planned by his ministry on July 24 would be aimed at ensuring that banks follow proper due diligence and ensure scrutiny of their transactions.
He was responding to a question from opposition Move Forward MP Rangsiman Rome, the chairman of the House committee on national security affairs, who had sought answers from Prime Minister Srettha Thavisin about the alleged arms-related fund transfers.
Mr Maris also said the UN report explicitly stated that there was no evidence suggesting Thai banks were aware that some transactions by Thai companies involved procurement of military equipment for Myanmar.
Myanmar is embroiled in a civil war that pits the military, which took back power 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 military has been accused of involvement in systematic atrocities, which it has dismissed as western disinformation.
Mr Maris said Thailand had no policy to support banking transactions that violate human rights. However, he added, it also did not support economic sanctions on the country.
Material supplied to the Ministry of Defence in Myanmar by companies based in Thailand ranged from spare parts for helicopters and aircraft to dual-use goods such as radio communications and IT equipment, medical supplies, construction materials, tools, lubricants and oil. A breakdown of the value was not available.
Such transactions, Mr Andrews said, 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.
The spokesperson of Myanmar’s ruling military council could not immediately be reached for comment on Thursday.
The five Thai commercial banks named in the UN report — Krungthai Bank, Siam Commercial Bank, Bangkok Bank, TMB Thanachart Bank and Kasikornbank — did not immediately respond to requests for comment from Reuters.
The Bank of Thailand has said it was considering working with international and local agencies to come up with an information database on companies linked to the military regime in Myanmar.