In a bombshell report released last year, the UN Special Rapporteur on human rights in Myanmar accused five of Thailand’s biggest banks of facilitating the weapons trade of Myanmar’s military junta. To date, Thai authorities have yet to offer a public confirmation.

The accusation of June 2024, however, was loud and clear: Thai banks were violating sanctions imposed by the international community and enabling human rights violations.  And according to the report, Thai-registered businesses also supplied military equipment to the junta between April 2022 – March 2024 and that the trade value doubled from over $60 million in 2022 to over $120 million in 2023.

Thai companies involved in the trade were not identified in the report.

The shipments reportedly included spare parts for helicopters and airplanes as well as electronic warfare equipment, support vehicles, missiles, and naval vessels. Also included were dual-use goods such as radio and communications equipment, IT and networking equipment, medical supplies, and raw materials such as chemicals, construction materials, fuel, and oil - goods which were shipped to Myanmar through "military procurement.”

The allegations were harsh, but not entirely new. During the weeks before the release of the UN report, the human rights advocacy group Justice for Myanmar linked four Thai banks, including a state-owned one, to a transnational organised crime hub in Myanma's Karen State. Their report revealed that in 2020, banking staff were sent to visit the notorious town of Shwe Kokko, known for being a transnational crime and human trafficking hub.

The banks in question denied the allegations and insisted that they upheld and adhered to the highest standards of business ethics and codes of conduct.

Anger and denial

Following the release of the report, the Minister of Foreign Affairs asserted through a spokesperson that the country's financial institutions had not violated international rules and regulations.

The House Committee on National Security, Border Affairs, National Strategy, and National Reform called an urgent meeting to seek the truth, but the Thai Bankers’ Association, which represents all banks in the country, also vehemently disputed report claims.

A few days later, in an official statement, the association denied the allegations and insisted that member banks were conducting business responsibly on behalf of their customers, society, and the global community, with due regard for human rights principles. It also said that it has "a clear policy against supporting the procurement of weapons and armaments for Myanmar military organisations."

Unsurprisingly, the Central Bank of Myanmar and the Myanmar Banks Association strongly objected to the report as well, stating that “the UN report severely harms the interests of Myanmar civilians and the relationship between Myanmar and other countries.”

Did Thai companies trade armaments with the junta?

We examined the trade of significant members of Thailand's Industry for National Defense & Security Association, which includes over 50 companies in both the private and public sectors.

Trade route tracking on the Ministry of Commerce's databasefound that the majority produce exports for Europe and the USA. Chaiseri Metal and Rubber, Thailand's most prominent military equipment provider, is an example.  It provides goods and services to the US, primarily vehicles and supporting equipment for UN forces. 

In a rare public interview in March2024, Nopparat Kulhirun, the company’s founder, told a Thai media outlet that, although her business benefits from countries at war, it did not support war but built instead for people “ … to protect themselves … to create safety on the battlefield.”

One arms business did export products to Bangladesh, Myanmar’s next-door neighbour. However, we cannot identify Thai arms traders directly involved with the Myanmar junta or confirm that equipment had been provided to the Tatmadaw, as reported by the UN's special rapporteur.

We did, however, find trade volume data for the products of interest. Although the total value of "weapons and ammunition, including components and accessories" (under the 93 Harmonized System (HS) code) that were exported to Myanmar in 2024 was a scant $178.75; items described as “nuclear reactors, boilers, machinery, mechanical appliances, and components (under the 84  Harmonized System (HS) code), were assigned a value of $226,750,249.92  In recent years, the category has been running at around $200 million a year.

Spike in drone exports

Despite media reports showing that drones have been widely responsible for the heavy loss of civilian lives in Myanmar, Thailand has also increased drone and drone part exports to Myanmar since 2022.

Although the UN report did not specifically mention drones, we found that in 2024, nearly 80% of the $1.34 million worth of export products listed as "aircraft, spacecraft, and components" (under the 88 Harmonized System (HS) code) were drone-related.

Drone exports also sharply increased between 2022 and 2023 from 75 units worth $7219.36 to 425 units worth $38,355.9. In 2024, the volume reached 18,128 units worth $ 1,056,216.74 - 43 times the number of units and 28 times the value of the preceding year.

Though these numbers seem insignificant compared to the $2.7 billion annual Myanmar military budget, this official trade record confirms that the trade of arms, aircraft, and components to Myanmar has not stopped.

The UN Special Rapporteur’s report stated that during the investigation period, the export of parts for Mi-17 and Mi-35 helicopters used to conduct airstrikes on civilian targets shifted from Singapore to Thailand.

The report also stated that: “Thai banks, including Siam Commercial Bank, have played a crucial role in this shift” - facilitating just over $5 million in transactions related to Myanmar military procurement in the 2022 fiscal year (FY). The figure leaped to over US$100 million in FY2023.

Transactions processed through Thailand in 2024 included payments of 4 million euros for the overhaul of Mi-35p attack helicopters, over US$3 million for components for MiG-29 fighter jets, and US$3 million related to K-8W light attack aircraft. All of these transactions reportedly occurred in February or March 2024.

Siam Commercial Bank denied the allegation, stating that “These transactions are not connected to the arms trade as reported in the news, and total value has not significantly increased compared to last year.” It also said that it performs due diligence to verify accuracy and reports all transactions to relevant authorities before processing.

The murky path of aviation fuel trade

Although the UN Special Rapporteur did not identify Thai companies involved in the arms trade, it did name two Thailand-registered businesses, Tawan-Oil Trading and CB Energy, as supplying US$80 million in aviation fuel to Swan Energy, an Indian conglomerate, and other buyers that are linked to the military junta.

Aviation fuel transactions passed through a private bank in Myanmar, one which is not on the sanction list. In Thailand, the payments were reportedly made through Krung Thai Bank and Kasikorn Bank.

Bangkok Bank and TMB Tanachart Bank were also mentioned as facilitating transactions.

The banks claimed that the transactions involved civilian goods and energy supply unrelated to the military operation.

But to the UN Special Rapporteur, they should have done more.

“Effective due diligence by Kasikorn and Krung Thai, including a review of Myanmar corporate records, could have revealed the Myanmar purchaser’s connections to the aviation fuel trade. For example, Swan Energy’s website openly states that it sells 10,000 metric tons of aviation fuel to Myanmar every month, which it claims is 100 percent of Myanmar's market share,” said the report.

This means Swan aviation fuel, supplied by Thais in part, was pumped into Myanmar jet tanks, including military ones.

A collaborative investigation with an Indian journalist also discovered that Swan Energy is related to Asia Sun Group, whose corporate network has been on the worldwide sanction list of companies involved with the Myanmar military since 2022. It has a substantial infusion of capital from a Mauritius-based secret fund, the Albula Investment Fund, cited by the media as “murky” and controlled by controversial Indian businessman Gautam Adani.

The UN report noted that airstrikes by the military junta against civilian targets in Myanmar increased fivefold in the six-month leading up to the issuing of its final report.

In January 2025, Blood Money Campaign, a collective of Myanmar activists campaigning to stop revenues from reaching the Myanmar military junta, called on ASEAN governments and companies to “immediately cease the involvement of companies in the direct or indirect export, sale, or transfer of aviation fuel to Myanmar. And sanction all persons and entities involved in the supply of aviation fuel to Myanmar."

Despite their denial of these allegations, the Bank of Thailand and the Thai Bankers' Association have agreed to establish a "task force" to undertake the due diligence process regarding the allegations. Requests to interview the Governor of the Bank of Thailand a Thai Bankers’ Association representative about the status of the investigation has not received a response at the time of publication.

However, Kasikorn Bank did confirm that it has terminated its relationships with Myanmar state-owned Myanma Foreign Trade Bank and Myanma Investment and Commercial Bank following the imposition of US sanctions.

Bypassing the sanctions

On 14 December 2024, the Myanmar military marked the 77th anniversary of founding an air force by commissioning four new fighter jets and three helicopters into its fleet. Generals and leaders could not hide their pride. The jets and helicopters were made in China and Russia.

Even before the coup in 2021, Myanmar faced economic sanctions, with over a hundred state-linked entities and individuals on the list. Many of the sanctions were imposed by the United States, but the European Union, the United Kingdom, Australia, and New Zealand also imposed their own sanctions. Every list includes, however, members of the State Administration Council (SAC), their spouses, and adult children. SAC chairman Senior General Min Aung Hlain was at the top of all lists.

With an annual budget of $2.7 billion, the Myanmar military has not faced any difficulties in finding weapons, however.

Myanmar's state-owned Myanma Foreign Trade Bank (MFTB) and Myanma Investment and Commercial Bank (MICB) have bypassed sanctions by processing international transfers through correspondent banking relationships and third-party intermediaries. Myanma Economic Bank (MEB) has been instrumental in the process.

Not long after this came to light, advocacy groups urged the US to include the bank on the sanctions list so that none of Myanmar’s state-owned banks will be spared from the sanction. But sanction regimes are complicated, allowing the SAC to manoeuvre between different lists. Of the five buyers to whom Thai businesses sold aviation fuel, four are not on the sanction list and one was only sanctioned in some jurisdictions. This is presumably how one Singapore-listed company was able to supply part of 2.3 million barrels of oil worth $150 million to the Myanmar military.

Fair Finance Thailand, a coalition of research companies and civil society organisations monitoring and advocating for sustainable finance in Thailand since 2018, filed an open letter to Thai banks implicated in the trade to demand three actions:

1. Transparency in Myanmar-related transactions.
2. Cutting ties with all military-controlled banks and guiding customers toward alternative Myanmar banks.
3. Rejecting risky transactions: stop processing deals where customers fail background checks stipulated by international financial guidelines.

As of last October 2024, it had yet to receive a response, according to Sarinee Achavanuntakul, research lead of the network.

Lesson from Singapore

Once a significant supplier of military equipment in the region, Singapore saw a dramatic decline in military equipment export to Myanmar following a 2023 UN report, which revealed that Singapore-based entities were the third largest source of weapons materials for the Tatmadaw and “critical” to its weapons procurement. Thailand was also cited in the same report as a source of “arms and related materials” for the Myanmar military.

In response, the Singaporean government investigated the findings. Exports to the Myanmar junta subsequently reduced from over US$110 million to just over US$10 million in 2024. The government also welcomed the UN Special Rapporteur’s assistance, while a spokesperson of Singapore’s Ministry of Foreign Affairs expressed appreciation for the efforts “to provide information to aid Singapore’s investigations into whether any offenses were committed under Singapore law.”

Singapore's financial system also strengthened its enhanced due diligence (EDD) process, requiring more rigorous customer verification methods, more research on beneficial ownership structures, more frequent checks on high-risk customers and transactions, and increased paperwork required for transactions involving Myanmar-related businesses. Automated monitoring systems were also strengthened to flag suspicious transactions, and the Monetary Authority of Singapore issued additional guidelines for financial institutions.

Thailand is still at a crossroads. Allegations of complicity in Myanmar’s arms trade seemingly demand acknowledgment and action. By adopting stricter financial regulations and enhancing transparency, Thailand could protect its economic system, uphold international human rights standards, and avoid being a silent enabler of war crimes.

The question remains. Will Thai banks and regulators take the necessary steps, or will denial and anger continue to define their response?