Some accounts on KPay, one of Myanmar's leading mobile payment apps, have recently been suspended for transferring funds to support flood-affected communities, under the pretext of suspected links to money laundering activities.

Since the first week of September, severe floods have impacted many regions of Myanmar, making KPay a crucial tool for the public to provide support and donations to those affected. However, the mobile payment app operated by KBZ Bank has, in some cases, suspended accounts without any clear reason, according to a user who experienced it firsthand.

"My account was suspended on 16 September without any specific reason. I contacted the call center to investigate, and they told me that the anti-money laundering team had flagged my account due to suspicion. KPay didn’t assist in resolving the issue,” he said.

Similarly, a resident of Karen State had his KPay account suspended, and his phone number was deactivated a week later.

"First, my KPay account was suspended. A week later, my phone number was deactivated. However, I haven’t made any donations for the flood yet. I’ve heard that many KPay accounts were suspended as well without reason on 16 September,” he told Shan Herald.

There are also reports that Han Nyein Oo, a well-known pro-junta lobbyist on Telegram, has spread false news to intimidate the public and discourage them from donating to flood-affected people.

KBZ Bank announced a donation of 10 billion Kyats for flood relief and rehabilitation, but in reality, it is suspending the accounts of KPay users who are contributing what they can to support flood victims.