Justice For Myanmar (JFM) accuses a network of companies in Thailand, Japan, and Hong Kong of sustaining Myanmar’s military-controlled pearl industry by sourcing materials and aiding sales, despite sanctions on Myanma Pearl Enterprise (MPE).

In a report released on 11 June, JFM alleges that the Canadian-linked Belpearl network uses a Thailand-based intermediary to procure pearl nuclei from suppliers in Japan and Hong Kong and ships them to its pearl-farming operations in Myanmar. Pearl nuclei serve as a key component in pearl cultivation and enable commercial pearl production.

According to JFM, Belpearl Myanmar runs pearl farms on Shwe Island and Zadet Nge Island in Tanintharyi Region under a production-sharing agreement with MPE. The United States, the United Kingdom, and Canada have sanctioned MPE since 2023. Under this arrangement, MPE receives a share of pearl production and later sells it through government-run emporiums, generating revenue for the military regime.

The report alleges that after authorities imposed sanctions on MPE, Belpearl’s owners established BP Farms (Thailand) Co. Ltd. to act as a procurement and payment intermediary. Documents reviewed by JFM show that BP Farms purchased pearl nuclei from Belpearl companies in Hong Kong and Japan and shipped them directly to Belpearl Myanmar. These transactions used bank accounts in Thailand, Japan, and Hong Kong.

JFM further claims that changes in Belpearl’s corporate ownership may have exploited sanctions loopholes in jurisdictions without restrictions on MPE. The group states that companies and financial institutions in Thailand, Singapore, Japan, and Hong Kong continue to facilitate business activities that support Myanmar’s pearl industry, despite international sanctions targeting the junta’s revenue streams.

The activist group called on governments to strengthen sanctions enforcement and urged the European Union and Australia to impose sanctions on MPE. It also renewed calls for Canadian authorities to investigate Belpearl and its owners over their business dealings with Myanmar’s military-controlled pearl sector.

Myanmar’s pearl industry remains a significant source of foreign revenue. Rights groups argue that continued international trade in Myanmar pearls undermines sanctions and provides financial support to a military regime accused of widespread human rights violations and war crimes.