Banking Chaos: Myanmar's Military Regime Threatens Private Banks With Hundreds Of Million Fines, Confiscates Customer Accounts

One of the private banks in Myanmar, AYA Bank. (Wikimedia Commons / Marcin Konsek)

JAKARTA - The Myanmar military regime has burned its beard. Two months of the coup running since February 1, Myanmar's banking system was in turmoil, along with strikes by bank employees, rejecting the Myanmar military coup.

Private banks have also chosen to close their outlets, because employees joined the civil disobedience rally (CDM), refusing to work under Myanmar's military regime.

To restore the wheels of the banking industry, the Myanmar military regime, through the Central Bank of Myanmar (CBM), imposed fines and penalties on private banks starting this week.

CBM will impose fines ranging from 2 million kyats to 20.1 million rupiah to 30 million kyats or around 205 million rupiah per week with terms and conditions applied.

In addition, CBM also asked financial companies, including private banks and digital wallet services, to ask their employees to return to work. For employees who do not fulfill this order, are blacklisted and unable to return to work in the banking industry in the future.

Officials from the two private banks confirmed to The Irrawaddy that they had received separate directions from CBM. A senior official for the branch of Myanmar's largest private bank said that, despite the regime's threats, the bank's operations would not continue smoothly as long as employees refused to return.

"There's nothing we can do. Most of them chose unpaid leave, when we sent them back (to the office). The bank has asked staff to consider the pressures they face. We need to wait and see how employees respond on Monday next week, "he explained.

Since the Myanmar coup on February 1, hundreds of branches of at least 31 local banks and 13 foreign banks in Myanmar have closed their doors because of an employee strike, stopping all banking services, except for mobile banking services and ATMs.

As a result, almost all trading companies, especially those engaged in international trade, were forced to stop their operations. Because the bank cannot issue the documents required for export-import activities. Companies also struggle to pay salaries, because banks do not provide payroll services.

Although the military regime detained bank officials and repeatedly pressured them to make efforts to resume operations, bank employees steadfastly refused to return to work.

The military regime has also warned private banks that they will forcibly transfer private deposit accounts to banks controlled by the Myanmar military, if they are unable to continue operations.

In addition, the bank came under scrutiny after the regime announced that it would investigate all financial transactions of international non-governmental organizations (international NGOs) and non-governmental organizations (NGOs) from 1 April 2016.

"We know our superiors are facing pressure from all sides. But, we cannot go back to work, while civil servants are risking their lives and giving up everything they have to oppose the military regime," he stressed. an employee of the Ayeyarwady Bank (AYA).

Myanmar Coup. The VOI editorial team continues to monitor the political situation in one of the ASEAN member countries. Casualties from civilians continue to fall. Readers can follow the news surrounding the Myanmar military coup by tapping on this link.