Military junta using anti-money laundering measures to suppress economy and opposition, warns expert group

Photo – Military junta troops are seen near a barricade displaying the three-finger salute, a symbol of protest, in front of the Central Bank of Myanmar in Yangon on February 15, 2021, during anti-coup protests. (AFP) MizzimaEAE The Myanmar military junta is using anti-money laundering standards as a weapon to suppress the opposition and bring economic activities under the control of state-owned banks, a Singapore-based expert group (think tank) has warned. They stated that this is being done not to combat corruption, but for the economic benefit of the military junta. According to an analysis by the ISEAS-Yusof Ishak Institute, the military junta has used the pretext of aligning with international standards to target pro-democracy supporters, freeze the bank accounts of numerous organizations, and dismantle informal remittance networks that millions of people rely on for their livelihoods. The report, authored by Myanmar expert Jared Bissinger, details how the military junta has exploited Myanmar's inclusion in the Financial Action Task Force's (FATF) "list of countries of concern" in 2022 for its own long-term economic and political survival. The report points out that while the military junta has effectively met four of the FATF's eight requirements, these measures are used to conceal its economic strategy. By enacting strict regulations, the military junta is attempting to channel foreign currency into state-owned banks and has also forcibly imposed designated high foreign exchange rates. For example, the official exchange rate is 2,100 kyats per US dollar, but for migrant workers, it is 3,975 kyats. Export businesses are also pressured to exchange 15 percent of their income at the official rate, allowing the military junta to acquire foreign reserves cheaply. To avoid these financial losses, authorities have carried out forceful arrests of informal money transfer operations, known as "Hundi," to prevent the public from seeking alternative methods. From January 2023 to August 2024, the military junta revoked 194 money exchange licenses and formed a special team to arrest brokers. The report notes a significant change from the past, when the 2008 military regime publicly acknowledged that the Hundi system served legitimate purposes in a country lacking banking infrastructure. Bissinger stated that the current arrests appear justifiable given the increased use of Hundi in illicit activities such as drug trafficking or online scam (Pyat That) centers. Furthermore, the military junta has explicitly used anti-terrorism financing laws to prosecute opposition figures. The report highlights the case of pro-democracy activist Ko Jimmy (aka U Kyaw Min Yu), who was convicted and executed in 2022 for allegedly exchanging US dollars to fund "terrorist acts." Since then, the military junta has designated the interim government, the National Unity Government (NUG), and other prominent ethnic armed organizations such as the Arakan Army (AA) and the Karen National Union (KNU) as terrorist organizations. Stringent financial monitoring and asset seizure measures have been applied to all individuals associated with them. Non-governmental organizations (NGOs) are also facing similar financial scrutiny. Following prominent incidents such as the freezing of the International Labour Organization's (ILO) bank accounts shortly after the 2021 coup, the military's data collection survey in 2025 has raised significant intelligence concerns. The report concludes that the FATF must urgently change its approach to Myanmar. It urges the global watchdog to recognize that targeting and suppressing illicit networks, not just technical compliance by the military junta, is destroying vital humanitarian livelihoods. It is stated that in conflict-affected areas where banking operations are not feasible, the Hundi system remains the only means for the public to receive life-sustaining remittances. Editor: Naung Naung The post Military junta using anti-money laundering measures to suppress economy and opposition, warns expert group appeared first on BUR.MIZZIMA.COM.