JFM uncovers attempt to launder 800 kg of gold linked to Min Aung Hlaing’s daughter

Photo – Justice for Myanmar (JFM) released a statement on July 17, revealing that a network linked to the military junta attempted to sell and launder 800 kilograms of gold, valued at approximately US$48 million, through Thailand, Laos, and Hong Kong, a few months after the military coup. The plan was coordinated by Daw Khin Thiri Thet Mon, daughter of junta leader Min Aung Hlaing, and aimed to sell the gold to a subsidiary of Laos’ major conglomerate AIF Group, with payments to be processed partly through the state-owned BIC Bank Lao, JFM stated. Furthermore, U Tun Min Lat, a close associate of Min Aung Hlaing’s family and an arms broker, acted as an intermediary broker with a Thai Member of Parliament at the time, it was said. It is understood that a representative company in Thailand attempted to act as the final seller for this transaction. However, the transaction was abandoned in mid-2021 due to disagreements over financial guarantees and procedural arrangements, it was learned. "Although the documents referred to 200 kilograms (122 viss) of gold having been sold previously, Justice For Myanmar was unable to independently confirm whether gold was actually transferred and sold,” the statement said. "However, the very attempt to sell gold in this manner demonstrates how high the risk of cross-border gold smuggling and money laundering is for the junta and Min Aung Hlaing’s inner circle,” it stated. These findings are based on draft agreements, letters of intent, and personal communications obtained by JFM. According to personal communication records, in May 2021, U Tun Min Lat approached a Thai MP and offered to sell gold at a “5-10 percent discount” from the market price of around US$60,115 per kilogram at the time. The two discussed the possibility of paying cash for the first batch of 500 kilograms of gold, valued at approximately US$30 million, and U Tun Min Lat stated that some of the gold was ready for sale in Bangkok and that further regular sales would follow, warning that the transaction needed to be kept highly confidential, JFM reported. In the mutual text message records between U Tun Min Lat and the other party, Daw Khin Thiri Thet Mon was also referred to as “daughter”. Furthermore, U Tun Min Lat alluded to having organizational backing for the gold sales plan by referencing the title “Chairman of the State Administration Council,” a position personally appointed by Min Aung Hlaing at the time. Throughout the negotiation of this sale, the amount of gold offered to AIF changed multiple times. Initially, 800 kilograms of gold per year were offered, which was reduced to 400 kilograms in the draft contract to be concluded with AIF, and further reduced to 200 kilograms by the end of June 2021. 800 kilograms of gold is an extremely large amount, exceeding Myanmar’s officially published annual gold production for that year. The transaction value according to the amount of gold ranged from over US$12 million for 200 kilograms of gold to over US$48 million for 800 kilograms of gold, which is a very large sum of money, JFM added. It has been found that junta leader Min Aung Hlaing, his family members, and close associates are directly involved in money laundering and the theft of public property, including the purchase of real estate in Thailand, and that Min Aung Hlaing is also seeking personal gain by exploiting Myanmar’s gold resources, which are being extracted by sanctioned military-owned businesses, JFM stated. Therefore, the statement urged the authorities in Thailand, Laos, and Hong Kong to investigate the junta’s illegal gold trading and hold them accountable. Furthermore, it urged the United States, the United Kingdom, the EU, Canada, and Australia to urgently expand targeted sanctions against the junta and their cronies to block the junta’s revenue streams and to respond to the cross-border crimes committed by the junta and their associates. Editor: Aung Kyaw Phyo