Big banks face scrutiny over business with Myanmar lender

Australian and Singaporean lenders accused of facilitating transactions with Myanmar military-owned financial institution.

Australia’s ANZ is among the many large banks accused of doing enterprise with a financial institution owned by Myanmar’s army administration [File: Reuters}

Major international banks, including Australia’s ANZ, have continued to do business with a bank owned by Myanmar’s military administration despite its bloody crackdown on anti-coup protests, according to an advocacy group and leaked documents.

ANZ, one of Australia’s “big four” banks, was used by Hong Kong-based insurer AIA to transfer funds to accounts operated by Innwa Bank, which is owned by military conglomerate Myanmar Economic Corporation (MEC), in August and September 2021, Justice for Myanmar said, citing leaked bank documents.

Malaysian company edotco, which leases towers to Myanmar mobile operator Mytel, also used ANZ to carry out transactions with Innwa Bank accounts in April and June 2021, according to a report released by the activist group on Wednesday.

Singapore’s UOB, one of Southeast Asia’s biggest banks, facilitated transactions between a Chinese shipping firm and MEC in June and July last year, according to the report.

The Singaporean lender was also used for transactions between Myanmar-based Lamintayar, a supplier of powdered milk, and a number of its executives, the report said.

Meanwhile, BIDV, a lender jointly owned by the State Bank of Vietnam and South Korea’s KEB Hana Bank, carried out at least 18 transactions with Telecom International Myanmar, which is part owned by MEC, according to Justice for Myanmar.

ANZ, one of Australia’s “big four” banks, has been used to transfer funds to accounts operated by Myanmar’s military-owned Innwa Bank, according to leaked documents [File: Tim Wimborne/Reuters]

The leaked Innwa Financial institution paperwork have been obtained and revealed on-line by Distributed Denial of Secrets and techniques, a self-described transparency collective that repeatedly releases info hacked from governments and companies.

An ANZ spokesperson mentioned the financial institution had “no business relationship” with Innwa Financial institution.

“ANZ should adjust to all relevant legal guidelines in all the jurisdictions during which it operates, together with necessities of supra-national organisations, such because the United Nations and European Union,” the spokesperson informed Al Jazeera.

“Whereas we're unable to touch upon particular relationships or transactions, ANZ has strong processes in place to make sure all actions undertaken are compliant with the relevant rules. These processes are in keeping with The Monetary Motion Process Power Suggestions.”

It's understood ANZ’s transactions doubtless associated to payroll operations that it handles for company shoppers like AIA, with the financial institution having no management over the place its shoppers’ staff select to financial institution.

A UOB spokesperson mentioned the financial institution couldn't touch upon particular person shopper relationships however will implement “enhanced due diligence on shopper relationships and transactions involving Myanmar the place relevant”.

“We're intently monitoring the scenario and on the similar time, making certain compliance with native and worldwide guidelines and rules,” the spokesperson informed Al Jazeera.

“When making use of enhanced due diligence measures, we are going to be sure that flows of funds for humanitarian help, professional non-profit organisation exercise and remittances usually are not disrupted.”

Al Jazeera contacted BIDV, AIA and KEB Hana Financial institution for remark.

Innwa Financial institution has performed an essential position in Myanmar’s military-owned firms having the ability to keep entry to the worldwide banking system amid United States sanctions, in line with a 2019 impartial fact-finding mission by the United Nations Human Rights Council

Whereas the EU, United Kingdom and US have imposed sanctions on MEC over the 2021 army coup, main economies reminiscent of Australia, Japan, Singapore and South Korea haven't taken motion towards the conglomerate.

Justice for Myanmar mentioned the worldwide banks’ enterprise with Innwa Financial institution confirmed “a failure of governments to take a coordinated strategy to isolating army conglomerates and chopping the junta’s sources of income”.

“Banks should instantly ban transactions with Myanmar army banks, or threat complicity within the junta’s worldwide crimes,” the activist group mentioned.

Myanmar’s army administration has killed greater than 2,400 civilians since overthrowing Aung San Suu Kyi’s democratically elected authorities in February 2021, in line with activists.