Banks mentioned in UN arms trade report say they comply with all laws
Release date: June 27, 2024 21:51
Siam Commercial Bank headquarters on Ratchadapisek Road in Bangkok. (Bangkok Post file photo)
Siam Commercial Bank (SCB) has said it has found no wrongdoing in its transactions with Myanmar and disputes some statements in a UN report about the bank’s role in financing military procurement.
SCB is Report released this week Tom Andrews, the UN special rapporteur on human rights in Myanmar, has detailed how Myanmar’s military junta continues to procure weapons to use against civilians.
The report said 16 international banks, including five from Thailand, had supported defense procurement deals by the State Administrative Council, the official name for Myanmar’s military junta.
The supplies, delivered by the Thailand-based company to the Myanmar Ministry of Defence, range from spare parts for helicopters and aircraft to radio communication and IT equipment, medical supplies, construction materials, tools, lubricants and oils and other potentially dual-use items. The value of the goods was not disclosed.
The report noted that the value of military goods exported from Thailand to Myanmar doubled to $120 million in fiscal year 2023-24.
“The significant increase in military procurement facilitated by Thai banks is mainly due to an increase in transactions routed through Siam Commercial Bank,” it said, noting that the figure rose from $5 million in fiscal 2023 to $100 million in the fiscal year ending March 2024.
in A statement released on Thursday In response to the report, SCB said: “SCB currently provides international transaction services with the primary objective of assisting Thai and international businesses to make payments for consumer products and services in Myanmar. These services are law-compliant and prioritise compliance with anti-money laundering laws.”
“Following media reports about Myanmar-related transactions, the bank conducted an internal investigation and found that several transactions by corporate clients were payments for consumer goods and energy, which are typical business activities.
“These transactions are not related to arms trade as reported in the news, and their total amounts have not increased significantly compared to last year. Banks have carried out due diligence to ensure accuracy and report these transactions to the relevant authorities before processing them.”
“SCB reaffirms its commitment to comply with relevant anti-money laundering and related regulations, adhere to the principles of sound governance and transparency, and seek to deliver long-term value to all stakeholder groups based on sustainable practices.”
