The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has designated Myanmar’s Ministry of Defense and two regime-controlled financial institutions that “facilitate much of the foreign currency exchange within Burma (Myanmar) and enable transactions between the military regime and foreign markets, including for the purchase and import of arms and related materiel,” according to a press release of the treasury department, dated June 21, 2023.

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A statement from US Secretary of State Antony Blinken reads: “Today, the United States is designating Burma’s Ministry of Defense (MoD) and two of Burma’s largest regime-controlled banks, Myanma Foreign Trade Bank (MFTB) and Myanma Investment and Commercial Bank (MICB). MFTB and MICB have been instrumental in facilitating the regime’s use of foreign currency to procure arms from abroad for the MoD. These banks also allow Burma’s revenue-generating state-owned enterprises to easily access international markets using the banks’ offshore accounts, providing significant financial resources for the regime to exploit for military purposes.”

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“The United States will not waver in its support for the people of Burma as they seek peace, justice, and a genuine democratic future for their country. We will continue to engage with our partners and allies in the broader international community to constrain the regime’s ability to exploit the international financial system to advance its violence and prolong the crisis, while restricting the regime’s ability to transfer hard currency to Russia’s defense sector,” the statement adds.

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