Myanmar’s military regime has closed more than 700 mobile bank accounts for allegedly funding anti-junta paramilitary groups in the month of May alone, according to data compiled by Radio Free Asia, industry experts and account holders.
The move is the latest attempt by the junta to cut off the flow of aid to Myanmar’s armed resistance, which the army vowed to eradicate after the coup on February 1, 2021, but has made increasing gains. on the ground in key areas of the country.
An investigation by RFA Burmese found that the junta last month closed at least 721 accounts accused of ties to anti-junta forces with mobile banking providers, including KBZPay, WavePay, AYAPay and CBPay. The board closed similar bank accounts before May, though the number was not immediately clear.
Account holders who were blocked from their accounts told RFA that the military had ordered the Central Bank of Myanmar to monitor “irregular” money transfers and deposits and to crack down on associated accounts.
While some of the closed accounts may have been used by people funneling money to anti-junta organizations, including the People’s Defense Force paramilitary group and the shadow National Unity Government, others belonged to ordinary civilians running small businesses, they said. some of those affected on Friday.
Yangon resident Wai Oo said his KBZPay account, which he opened in 2019 to run his online shopping business, was closed by the board last week with nearly 2 million kyat (US$950) still in it. He said he went to his bank to explain the mistake, but was forced to leave without getting his money or his account restored.
“If they want to cut PDF support, they need to do their due diligence first,” he said. “Online shopping companies like mine do bank transactions on a daily basis and should be investigated further. We are being hurt by this baseless closure of our accounts.”
Amar Myint, a woman from Monywa, also had her KBZPay account frozen by order of the central bank without giving any explanation, even though she only used it for regular banking activities.
“I’m just an ordinary citizen minding my own business and not engaging in any complicated activities,” she said, adding that she mainly used her account to pay for her internet access and shop online. “When I spoke to the bank, they didn’t say anything other than the central bank told them to.”
Transactions monitored daily
RFA also spoke to private bank employees who said that, since the coup, they have had to report their institution’s online and mobile bank account transactions to the central bank “on a daily and monthly basis”.
“Among the accounts, those with at least 10 transactions per day or making transfers of 2 million kyat or more are monitored separately,” said a bank official who spoke on condition of anonymity, citing security concerns. “When an account is suspected of transferring money to other regions, they close the account permanently.”
RFA’s attempts to contact central bank officials regarding the closure of the mobile bank accounts went unanswered on Friday.
The junta’s Deputy Information Minister, Major General Zaw Min Tun, told a press conference in the capital Naypyidaw in September that the imposition of such strict rules was done to “prevent financial fraud and violence.”
making life difficult
Thein Tun Oo, executive director of the Thayninga Institute for Strategic Studies, a group made up of ex-servicemen, told RFA that account closures are key to protecting the nation from terrorism.
“If you look at it from a national security point of view, it is worrying that large amounts of money are transferred from one place to another for suspicious activity using modern technology and no one can track it,” he said. “If these transactions cannot be strictly controlled, the resistance groups will continue to receive support, which will lead to more rebellion and chaos for the people.”
But Sayar Kyaung, the head of the anti-junta Yangon UG Association, said the regime’s closure of mobile bank accounts affects not only PDF groups but also the livelihoods of ordinary civilians.
“The board knows that people will not be able to pay attention to the revolution if making ends meet becomes more and more difficult,” he said. “The junta is trying to cripple people’s businesses so they are less willing to support the revolution.”
Translated by Myo Min Aung. Edited by Joshua Lipes and Malcolm Foster.