23 June 2017
The Central Bank of Myanmar plans to make more cooperation with Chinese banking sector to crack down cross-border illegal trading and money transfer cases.
Three Chinese banks have frozen the accounts of some 5,000 merchants to clamp down on smuggling and illegal gambling.
The freeze began on June 15th and most the accounts are of Chinese merchants while some 137 are of Myanmar merchants.
Officials from both sides discussed to settle case as soon as possible in order not to have impact on border trade.
During the 7th regular meeting of Vice President U Myint Swe with the entrepreneurs on Friday, Union Minister for Commerce Dr. Than Myint stressed that the condition of border trade is stable apart from decline in rice export.
Union Minister , Ministry of Commerce , Dr. Than Myint : It will take about 3 months for this case to take action, I think. During the period of the case, the border trade is running in stable condition and it impacts only for rice export. We are trying to solve this case as quickly as we can in order not to have any impact on our trade.
Myanmar mainly exports rice, bean and maize to China through border trade from Muse.
The Union Minister pointed out that illegal trade and money transfer is the major challenge, and it needs close cooperation between the two banking industries.
Union Minister , Ministry of Commerce , Dr. Than Myint : Both sides connection for banking services is very weak and our Central bank is discussed for more cooperation in banking sector with China. We will carry out the tasks in line with the bilateral trade agreement while trying to produce value added products and implement the export diversion. Illegal trade and money transfer is also the main challenges in trade investment of both countries.
The estimated deposits of 137 Myanmar merchants who have been frozen bank accounts temporarily amounted over 290 million Yuan.