UOB to close Myanmar Airways International bank accounts by Aug 15

UOB will close all five Myanmar Airways International (MAI) accounts by Aug 15, despite appeals by the airline to keep them open. In a letter signed by MAI CE Saravanan Ramasamy and sent to business partners, the bank proposed a timeline “to allow a smooth transition and minimise disruption”. The letter, seen by The Straits Times, also included correspondence from UOB dated June 26. It said that by July 1, no cash or cheque deposits will be allowed into MAI accounts with UOB. The airline will also have to stop using the bank to make payments to others by July 21, and neither will anyone be able to make payments or transfer funds to the bank, except those from the International Air Transport Association. After the Aug 15 deadline, any balance in the five MAI accounts will be remitted, said UOB in its correspondence with the carrier. It has asked MAI for a list of upcoming transactions and supporting documents to indicate the type of goods being transported through MAI’s cargos, citing examples such as cargo manifests and security declarations. In the meantime, UOB said it will step up its monitoring of MAI accounts, adding that there will be delays in the processing of payments and collections, although no reasons were given for the closure of the accounts in the document.<br/>