Irrawaddy-June 12

Within a few days of the Feb. 1 coup, attention focused on pressuring the military coup-makers by blocking the military’s access to hard currency. There was a flurry of news about the US freezing Myanmar’s account at the Federal Reserve and Singapore’s banking authority stating that its checks had found “no significant funds from Myanmar companies and individuals” in Singapore banks. The effectiveness of sanctions depends greatly on compliance by international banks. Despite assured statements from Singapore banking authorities, it is almost certain that banks in Singapore, a global financial center and the source of most foreign investment in Myanmar, hold sizable deposits of sanctioned Myanmar citizens and entities. There are also reports that Singaporean banks hold sums of Myanmar’s foreign reserves. Myanmar banks, including military-owned Myawaddy Bank, also have correspondent relationships with Chinese, Korean, Malaysian, Singaporean, Taiwanese and Thai banks. Read more at: https://www.irrawaddy.com/opinion/guest-column/us-sanctions-on-myanmar-put-international-banks-in-the-spotlight.html