Correction: An earlier version of this story contained inaccuracies related to the acquisition of MAI and another airline by Aung Aung Zaw’s 24 Hour Group (also called 24 Hour, a shortening of 24 Hour Mining & Industry Company Limited). The story inaccurately stated that 24 Hour—the current sole manager of the MAI—bought MAI in 2018 from the KBZ Group (a shorter name for ‘Kanbawza Group of Companies Limited’), and bought ‘KBZ airline’ in 2019.
Although 24 Hour is the sole manager and operator of the airlines MAI and Air KBZ as of 2019, its acquisition of both airlines was transacted with individual investors. There was no transaction with KBZ Group or connected entities, which had no ownership interest in either airline. References to 24 Hour’s acquisition of MAI and Air KBZ have been removed for clarity and accuracy.
Singapore financial giant United Overseas Bank (UOB) is in the process of closing down accounts belonging to Myanmar Airways International (MAI) by mid-August, according to a leaked document from the airline.
The undated letter, signed by chief executive officer Sara Vanan, describes how MAI—a private airline owned by Aung Aung Zaw, a crony close to the Myanmar junta—has been facing delays in making payments after UOB decided to proceed with the account closure. It is unclear to whom the letter was intended.
“Despite our appeal to maintain the bank account, UOB has remained firm in closing the account,” the document said, referencing a June 26 email exchange between MAI and UOB about the closure.
The email, which is included in the letter, explained that MAI could no longer accept incoming transactions, including cash or cheque deposits as of July 1 or bank giro transfers as of the end of the month. All accounts registered under MAI and bank guarantees extended to the airline are scheduled for cancellation by August 15.
The reasons behind the closure were not known at the time of reporting. However, according to the MAI CEO’s letter, the termination was occurring “despite us providing the lessor’s and supplier’s confirmation and the reason for using our account,” suggesting the possibility that bank policy was violated.
The move coincides with recent sanctions put in place by the United States against two of the largest regime-controlled banks in Myanmar: the Myanmar Foreign Trade Bank and the Myanmar Investment and Commission Bank.
Earlier this year, the Financial Action Task Force—a Paris-based intergovernmental monitoring organisation—also urged its member countries to exercise enhanced due diligence when engaging in business relations and transactions involving blacklisted Myanmar, Iran and North Korea.
Sara Vanan wrote in the June letter that alternative arrangements, including the opening of accounts at DBS (Development Bank of Singapore), Thailand’s Kasikorn Bank, and Dubai’s Emirates NBD, were being made in response to the closure of those at UOB.
Myanmar Now contacted both UOB and MAI for comment regarding the actions around the airline’s accounts but had not received a response at the time of reporting.
MAI is a subsidiary of crony conglomerate 24 Hour Group chaired by Aung Aung Zaw.
Aung Aung Zaw’s business interests also include real-estate development, coal and gold mining, palm oil plantations, construction and tourism, according to its website. Moreover, in 2021, he founded 24 Petroleum Limited to import and distribute gasoline, diesel and A1 jet fuel in Myanmar.
Activist group Justice For Myanmar (JFM) reported last August that MAI likely acted as a transfer agent in repatriating funds for Australian company Mallee Resources Limited after the company sold its stake in the Bawdwin mining project to Win Myint Mo Industries Company owned by the Asia World conglomerate.
Calling for immediate targeted sanctions against 24 Hour Group, JFM said in the 2022 report that MAI and the Myanmar air force had shared aircraft, and the junta leadership regularly use an MAI branded aircraft for their international travel, including to Russia, where the junta’s leadership has discussed business and the purchase of arms.
“MAI and its crony owners are key associates of the illegal military junta, supporting the junta’s ongoing war crimes and crimes against humanity,” a JFM spokesperson told Myanmar Now on Monday.
“Singapore banks should ensure they do not provide services to MAI, and all other companies providing financial support and arms to the junta.”
Due to their “flexible” services, Singaporean banks have for decades been a popular medium through which the Myanmar military and its cronies have been able to conduct financial transactions and grow investments. Since the 2021 coup, Singapore has reportedly been tightening restrictions around business activities related to members of the military, as well as on other Myanmar residents unconnected to the regime. Members of the Myanmar diaspora in the country told Myanmar Now that it has become increasingly difficult to set up companies in Singapore in recent years due to this shift. However, Singapore remains one of Myanmar’s largest foreign investors, putting more than US$1 billion into the country during the 2022-2023 fiscal year, according to junta financial data.
