An action order from U.S. President Joe Biden gave the green light to block the move non-stop, Reuters reported.
Myanmar’s military regulators attempted a move of about $ 1bn held at the Federal Reserve Bank of New York (FRBNY) in the United States days after seizing power on Feb. 1, forcing U.S. officials to freeze. The fund, three people familiar with the case, including one U.S. government official, told Reuters news agency.
The transaction on February 4 in the name of the Central Bank of Myanmar was initially blocked by Fed protections. U.S. government officials then suspended approval of the move until an action order issued by U.S. President Joe Biden gave them legal authority to suspend it indefinitely, sources told Reuters.
Consideration declined for New York Fed to comment on specific account holders. The U.S. Treasury Department declined to comment as well.
The previously unreported attempt came after Myanmar militants installed a new bank governor and detained reform officials during the cup.
He signaled an apparent attempt by Myanmar generals to lift international sanctions after their arrest as elected officials, including de facto leader Aung San Suu Kyi, who had elected a national. win in November. The army seized power and accused fraud – claims that the Electoral Commission has been removed from office.
A debated debate for the Myanmar military government did not respond to several calls seeking comment. Reuters news agency could not reach officials at the central bank.
The U.S., Canada, the European Union and the United Kingdom have imposed new sanctions in the wake of the cup and the deadly crackdown on the military on demonstrators. The United Nations said Thursday that at least 54 people have been killed since the coup. More than 1,700 people were arrested, including 29 journalists.
Announcing a new regulatory order that paves the way for sanctions on the generals and their businesses, Biden said on February 10 that the U.S. was taking steps to prevent the generals from “getting inappropriately”. to $ 1bn in Myanmar government money.
U.S. officials did not explain the statement at the time, but an action order issued the next day cites the Central Bank of Myanmar specifically as part of the Myanmar government. The order authorizes the seizure of Myanmar post-coup government funds.
Two sources told Reuters news agency that the action order was designed to give New York Fed legal authority to keep the $ 1bn worth of Myanmar reserves unlimited.
Routine events
Myanmar’s reserves would be managed by a part of the New York Fed called Central Bank and International Account Services (CBIAS), where many central banks hold U.S. dollar stocks for purposes such as settling transactions. .
An attempt was made to empty the account on Feb. 4 but it was automatically blocked by processes imposed by the New York Fed prior to the coup, two sources told Reuters.
One source told Reuters that this was due to the need for further investigation into myanmar-related issues as last year the country was placed on the international financial action agency’s “gray list” for concerns. about money laundering, partly due to the risk of laundering money from drugs. through its banks.
The CBIAS compliance manual, published to the public in 2016, states that the New York Fed guidelines include provisions for responding to developments in accounting countries.
“Where appropriate,” he says, the bank’s legal department “will liaise with the U.S. State Department to discuss current events and any changes that may affect the central bank and co-control. -connected to the FRBNY account. “
The State Department declined to comment on this story.
Myanmar generals appeared to have control of the Myanmar Central Bank at the time of the withdrawal attempt.
When the army took over in Myanmar on February 1, he installed a new bank governor and arrested top economic officials, including Bo Bo Nge, the reformer’s deputy governor and Suu Kyi ally, who according to the Association for Support for Political Prisoners.
As of Thursday, he is still in custody, according to the association.