US Blocks Myanmar Military's Attempt to Withdraw $1 Billion

[Asia Economy Reporter Yujin Cho] Major foreign media reported on the 4th (local time) that the Myanmar military attempted to withdraw $1 billion (approximately 1.1323 trillion KRW) deposited in the United States on the 4th of last month, shortly after seizing power through a coup, but the U.S. blocked the attempt.

According to reports, the Myanmar military, which took power through a coup on the 1st of last month, attempted to make a withdrawal transaction at the New York Federal Reserve Bank on the 4th under the name of the Central Bank of Myanmar, but was blocked by internal security procedures.

The withdrawal attempt on the 4th, before U.S. sanctions were announced, was automatically blocked because the funds were placed on a "grey list" due to allegations of money laundering related to drug trafficking.

U.S. President Joe Biden signed an executive order directly sanctioning Myanmar military leaders on the 10th, and through this order, the $1 billion remains frozen indefinitely. President Biden stated when announcing the sanctions against the Myanmar military, "We have taken measures to prevent the Myanmar military from improperly accessing the $1 billion."

The $1 billion is scheduled to be managed through the Central Bank and International Account Services (CBIAS) operated by the New York Fed. The New York Fed stated that it communicates closely with the U.S. Department of State regarding related matters in accordance with the revised 2016 CBIAS regulation manual.

Meanwhile, immediately after the coup, the Myanmar military detained and replaced existing government ministers and also replaced the governor of the Central Bank of Myanmar with a new figure.

In Myanmar, bloodshed continues as the military and police violently suppress anti-coup protests indiscriminately. According to the United Nations (UN) Human Rights Office, at least 54 people have died and about 1,700 have been detained by the military and police in the month following the coup.