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Myanmar Charities Face Collapse as Sham Government Demands Huge Security Deposits

May 7, 2026

MAWLAMYINE, Myanmar — Vital humanitarian services in Mon State are on the brink of closure after Myanmar’s sham government introduced new regulations requiring non-profit organizations to deposit large sums of cash as “security bonds” to maintain their licenses.

Under the new administrative orders, local charities—which provide free ambulance services, funeral assistance, and disaster relief—are being forced to deposit between 5 million and 100 million Myanmar Kyat ($1,500 to $30,000 USD approx.) in state-controlled banks, depending on their operational level. International NGOs (INGOs) face demands of up to 3 billion Kyat (nearly $1 million USD).

For groups that rely entirely on public donations, these figures are insurmountable. In Mawlamyine, at least 13 state-level social organizations are being threatened with dissolution unless they can prove a bank balance of 500 million Kyat ($150,000 USD).

“We received the notice in late February. For organizations that operate on goodwill and limited donations, this amount is impossible to find,” a volunteer in Mawlamyine told MPA. “These funds would be frozen in the bank; we can’t even use them for fuel or maintenance. Many of us will have no choice but to stop our services.”

Failure to comply with these registration laws carries heavy penalties, including up to three years in prison for staff continuing to operate without a license.

The sham government’s new law, which replaces the more flexible 2014 Association Registration Act, also mandates that all organizations report their activities to the authorities every three months.

Political analysts argue that the move is designed to dismantle independent social networks and prevent any potential support for the resistance movement. “It’s about total control,” said a Mon politician. “They want to monitor every move, cut off international aid, and ensure that no group can operate without their explicit permission, even if it means the poorest civilians lose their only lifeline.”

The impact of these closures will be felt most acutely by the elderly and the impoverished. In rural townships like Paung, many residents rely solely on volunteer ambulances to reach hospitals in the regional capital.

“If these groups stop, we have no one else to turn to. The government provides no help at all,” said a 50-year-old woman who requires weekly medical treatment. “When someone in the village falls ill or dies, these volunteers are the first to arrive. Without them, we are helpless.”

Since the 2021 coup, nearly half of the charitable organizations in Mon State have already ceased operations due to rising fuel costs, harassment by security forces, and accusations of aiding the resistance. This latest financial squeeze threatens to wipe out the remaining few, leaving a massive vacuum in Myanmar’s already crumbling social safety net.

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