Singapore’s United Overseas Bank (UOB) will shut all of Myanmar junta-linked Myanmar Airways International (MAI)’s bank accounts by August 15, after beginning the process by imposing restrictions and heightened scrutiny on the airline’s accounts earlier this month.
Despite MAI’s appeal to maintain the bank accounts, “UOB has remained firm in closing the account,” a recent letter sent to MAI’s business partners said.
The letter, signed by the airline’s CEO Saravanan Ramasamy, does not explain why UOB is closing MAI’s accounts, but their closure follows US sanctions on two Myanmar state-owned banks that conduct international transactions last month.
The junta used the two banks to facilitate payment for weapons and materials that allow it to continue its violence and oppression, the US said.
The MAI letter said UOB will cancel the five accounts it has at the bank by August 15. The letter includes an email from a UOB executive outlining a three-step process for canceling the five accounts and advises MIA that there will be enhanced monitoring of the accounts during their phase out as well as “delays in the processing of payments and collections.”
MAI accounts were unable to receive cash and cheque deposits from July 1, according to the email. Restrictions on payments from the MAI accounts will be imposed from July 21 and all payments into them will be blocked. The accounts will be canceled on August 15, with “any remaining balance remitted out,” the email from the UOB executive says.
MAI is owned by crony U Aung Aung Zaw, the chairman of the 24 Hour Group of Companies, which also runs carrier Air KBZ.
Both airlines were previously owned by arch-crony U Aung Ko Win, owner of the KBZ Group of Companies. Air KBZ and MAI were sold to 24 Hour Group in late 2018. Neither company provided details about the deal.
MAI and the Myanmar Air Force share aircraft, while junta leaders use an MAI-branded aircraft for international travel, including to Russia, where they purchase arms.
Advocacy group Justice For Myanmar has detailed extensive links between 24 Hour Group businesses and the junta. These include a large-scale limestone quarry and coal mines that have production-sharing contracts with state-owned enterprises, now under junta control, as well as a waterfront development on land seized from Rohingya in Sittwe, the capital of Rakhine State.
In its letter, MAI said it was opening accounts at other banks.
“We are glad to say that significant progress has been achieved [and] we are at the final stages for some these bank account openings,” the CEO said in the letter, naming three: Singapore’s DBS, Thailand’s Kasikorn Bank, and Dubai’s Emirates NDB.
Singapore is the largest source of foreign investment in Myanmar as well as the preferred destination for Myanmar’s military rulers and their cronies. They make frequent visits to the city state for medical reasons, recreation or to squirrel away money in bank accounts held by proxies. Many Singaporean companies have commercial ties with Myanmar’s junta and its conglomerates.
Following the coup, the city state saw its financial leverage over the regime rise.
In October 2021, US State Department counselor Derek Chollet met with officials from the Monetary Authority of Singapore to discuss ways to limit the Myanmar regime’s access to overseas financial assets.
