S'pore prevents arms flow into Myanmar, but does not intend to block legitimate trade: MFA

In response to a Jun. 26 report by the United Nations (UN) Special Rapporteur on the situation of human rights in Myanmar Tom Andrewson, the Ministry of Foreign Affairs (MFA) reiterated Singapore's position on being against the Myanmar military’s use of lethal force against unarmed civilians.

In the statement on Jun. 28, MFA said it is Singapore's policy to prohibit the transfer of arms or items assessed to have potential military applications or may be used to inflict violence against unarmed civilians in Myanmar.

"At the same time, it is not the intention of the Singapore Government to block legitimate trade with Myanmar," MFA said.

"Legitimate trade and financial links between Singapore and Myanmar are necessary to support the livelihoods of the Myanmar people.

We have been very careful to avoid inadvertently causing greater hardship for the Myanmar people."

S'pore committed to supporting international efforts

In the UN report, Andrew lauded the nearly 90 per cent drop in weapons flowing to Myanmar from Singapore-registered companies after the Singaporean Government investigated the entities involved.

The same report, titled “Banking on the Death Trade: How Banks and Governments Enable the Military Junta in Myanmar", recommended that financial institutions "terminate or freeze all financial relationships with Myanmar’s state-owned banks, including Myanma Economic Bank, and undertake enhanced due diligence on all business relationships and transactions related to Myanmar".

MFA said the Monetary Authority of Singapore (MAS) has been closely engaging Singapore Financial Institutions (FIs) on measures to guard against money laundering and terrorism financing risks emanating from the situation in Myanmar since February 2021.

Singapore FIs will not facilitate any transactions involving the sale and transfer of arms to Myanmar, the statement said.

MFA said Singapore FIs have been applying enhanced due diligence on transactions involving Myanmar entities and individuals, aligned with the Financial Action Task Force (FATF)’s blacklisting of Myanmar since October 2022, while noting the need to avoid impacting the delivery of humanitarian assistance and the activities of legitimate non-profit organisations.

MFA added that MAS published a circular in August 2023 setting out additional guidance on measures that FIs should incorporate to better detect and manage sanctions-related risks.

MFA said it awaits specific and actionable information from the Special Rapporteur’s Office so that it can conduct the necessary checks on the leads provided in the latest report and ensure that Singapore's FIs and companies are taking the necessary measures to address the risks posed.

MFA reiterated,

"Singapore is committed to cooperating with our international counterparts in supporting international efforts to prevent money laundering and terrorism financing risks arising from Myanmar."

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Top image via MFA website and @kyawhet_lwin/X