Sonali Bank freezes accounts of 2 Myanmar banks

Sonali Bank has frozen accounts of two banks of Myanmar following sanctions imposed by the US, and further steps will be taken based on Bangladesh Bank's opinions. 

The US embassy in Dhaka recently gave reminder to Bangladesh that Myanmar Foreign Trade Bank and the Myanmar Investment and Commercial Bank were under US sanctions.

The US embassy also reminded that those banks have accounts with state-run Sonali Bank.

"Those banks of Myanmar have $1,200,000 in our bank but they cannot withdraw the fund because we froze the accounts after US sanctions," said Md Afzal Karim, managing director and CEO of Sonali Bank.

However, a senior official of the state-run bank, seeking anonymity, said the bank already sought opinion from the central bank about the accounts of the two banks of Myanmar.

Sonali Bank has $200,000 deposited with the two banks of Myanmar, as per the official of the bank. He said further steps would be taken once the central bank's opinion was available.

Prior to the move, Financial Institutions Division of the finance ministry received a letter from the foreign ministry on August 3 informing about the accounts of the two banks of Myanmar with Bangladesh's Sonali Bank.

The letter, quoting the US embassy in Dhaka, said the ministry was reminded that the two banks of Myanmar were currently under US government sanctions. The letter requested to take necessary measures in this regard.

In June, the US imposed sanctions on Myanmar Foreign Trade Bank, the Myanmar Investment and Commercial Bank and the country's defence ministry.