In response to media queries on the report “Banking on the Death Trade: How Banks and Governments Enable the Military Junta in Myanmar” released by United Nations Special Rapporteur on the situation of human rights in Myanmar Thomas Andrews on 26 June 2024, the MFA Spokesperson said:

“Singapore has taken a principled position against the Myanmar military’s use of lethal force against unarmed civilians and has worked to prevent the flow of arms into Myanmar as called for in United Nations General Assembly resolution A/RES/75/287 “The Situation in Myanmar”. Singapore’s policy is to prohibit the transfer of arms to Myanmar, and to not authorise the transfer to Myanmar of dual-use items which have been assessed to have potential military application and where there is a serious risk they may be used to inflict violence against unarmed civilians. At the same time, it is not the intention of the Singapore Government to block legitimate trade with Myanmar. Special Rapporteur Andrews’ findings underscore the effectiveness of Singapore’s policy, especially through the measures imposed by Singapore financial institutions (FI).

Since February 2021, the Monetary Authority of Singapore (MAS) has been closely engaging Singapore FIs on measures to guard against money laundering / terrorism financing (“ML/TF”) risks emanating from the situation in Myanmar. Singapore FIs will not facilitate any transactions that involve the sale and transfer of arms to Myanmar. 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. In August 2023, MAS published a circular (https://www.mas.gov.sg/-/media/mas-media-library/regulation/circulars/amld/circular---ensuring-effective-detection-of-sanctions-related-risks.pdf) setting out additional guidance on measures that FIs should incorporate to better detect and manage sanctions-related risks. Singapore FIs also had success in the deployment of data analytics to better identify risks and apply appropriate risk mitigation measures, in particular around the detection of front and shell companies being used to potentially evade sanctions, among other purposes (https://www.mas.gov.sg/-/media/mas-media-library/regulation/guidance/amld/effective-use-of-data-analytics-to-detect-and-mitigate-mltf-risks-from-the-m-isuse-of-legal-p-ersons/effective-use-of-data-analytics-to-detect-and-mitigate-mltf-risks-from-the-misuse-of-legal-persons.pdf).

In addition to FIs, the Singapore Government also conducts regular outreach to companies to ensure alignment with Singapore’s export control policy on Myanmar. Inter-agency efforts are in place to ensure that our export control framework is not being undermined, while ensuring that we do not block legitimate trade with Myanmar. 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.

Singapore is committed to cooperating with our international counterparts in supporting international efforts to prevent ML/TF risks arising from Myanmar. We await specific and actionable information from the Special Rapporteur’s Office so that we are able to conduct the necessary checks on the leads provided in his latest report, and ensure that our FIs and companies are taking the necessary measures to address the risks posed.”

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MINISTRY OF FOREIGN AFFAIRS

SINGAPORE

28 JUNE 2024