Siam Commercial Bank (SCB) says it has found no irregularities in transactions with Myanmar, and disputes some statements made in a United Nations report about the bank’s role in military procurement financing.
SCB was responding to a report released this week by Tom Andrews, the UN special rapporteur on human rights in Myanmar, detailing how the military regime in Myanmar continues to be able to procure weapons that it uses against civilians.
The report said that 16 international banks, including five in Thailand, facilitated defense procurement transactions by the State Administration Council, as the Myanmar junta is officially known.
Materials supplied to the Ministry of Defense in Myanmar by companies based in Thailand ranged from spare parts for helicopters and aircraft to potential 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.
The report noted that the value of military goods exported from Thailand to Myanmar doubled in the 2023-24 fiscal year to US$120 million.
“The large increase in military procurement facilitated by Thai banks was largely driven by an increase in transactions passing through Siam Commercial Bank,” it said, noting that the value rose from $5 million in fiscal 2023 to $100 million in the fiscal year ending in March 2024.
In a statement issued on Thursday in response to the report, SCB said: “SCB currently provides international transaction services with the primary objective of supporting Thai and international businesses in paying for consumer products and services to Myanmar. These services adhere to laws and prioritize compliance with anti-money laundering laws.
“In response to media reports on transactions related to Myanmar, the bank conducted an internal investigation. It was found that several transactions made by corporate customers were payments for consumer goods and energy, which are typical business activities.
“These transactions are not connected to the arms trade as reported in the news, and the total value has not significantly increased compared to last year. The bank performs due diligence to verify accuracy and reports these transactions to relevant authorities before processing.
“SCB reaffirms its commitment to adhering to relevant anti-money laundering and related regulations, ensuring compliance with principles of good governance and transparency, and aiming to deliver long-term value to all stakeholder groups based on sustainable practices.”
This story first appeared in The Bangkok Post.
