U.S. officials have frozen about $1 billion in funds deposited at the Federal Reserve Bank of New York after the Burmese military seized power on Feb. 1 in an attempt to divert the funds.
Reuters reported that three people familiar with the situation, including U.S. officials, said the U.S. Federal Reserve Board of Governors (Fed) oversight unit first stepped in to block a transfer in the name of the Central Bank of Burma on Feb. 4. After that, the U.S. continued to suspend approval of the funds transfer until President Joe Biden authorized an indefinite freeze.
The Burmese military attempted to divert Burmese funds from the U.S. after detaining reformist officials during the coup and assigning a new central bank president; this attempt was previously undisclosed.
The diversion of funds by military generals following the arrest of AungSan Suu Kyi, the substantive leader of Burma’s civilian government, and elected officials was an apparent attempt to reduce the impact of international sanctions.
The military has repeatedly cracked down on pro-democracy protesters since the military coup in Burma, and the U.S., Canada, the European Union and the U.K. have all subsequently offered new sanctions.
The United Nations said today that at least 54 people have been killed and more than 1,700 people, including 29 journalists, have been arrested since the coup in Myanmar.
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