Former Myanmar Chamber of Commerce Official Detained in Spain Over Funding Dispute

BARCELONA, Spain — A former board member of the American Chamber of Commerce in Myanmar has been detained in Spain over financial allegations his supporters say were fabricated by the current leadership.

Munimul Islam, CEO of Misfit Technologies, was arrested upon arriving at Barcelona’s international airport Tuesday while preparing to begin a holiday with his wife, his attorney Cristián Carci said.

The detention stems from a months-long case filed by AmCham Myanmar against Islam, former board president Adam Castillo, and former executive director Ye Khaung “Danny” Kyaw, with Myanmar authorities aggressively pursuing the matter.

AmCham Myanmar accuses Islam of misappropriating funds used to hire a Washington-based public relations firm for lobbying. Documents indicate, however, that roughly $300,000 was paid directly by his company to Mercury Public Affairs and properly declared with U.S. authorities.

“This is a fabricated case,” Islam, a Bangladesh national, told The Associated Press in a voice note following his detention. “We have all the evidence, the press has all the evidence, the Myanmar court has been given all the evidence.”

Islam was detained based on an Interpol “Red Notice” requested by Myanmar authorities alleging misappropriation of funds.

Myat Phyu The, AmCham Myanmar’s current executive director, said the organization was not informed of Islam’s detention.

“Decisions concerning charges, detention, bail, or ultimately guilt are matters for the relevant authorities and courts — not AmCham Myanmar,” she wrote in an email.

The complaint focuses on Castillo’s creation of the U.S.-Burma Economic Forum as a lobbying arm during his presidency from 2023 to 2025, and a 2024 contract he signed with Mercury.

In its official complaint, AmCham Myanmar alleged Castillo “illegally collected” the $300,000 under the association’s name without depositing it into chamber accounts.

The chamber’s May annual report stated the board never approved the agreement and received no services, though other internal documents appear to contradict that claim.

A signed board resolution provided by Castillo’s supporters shows the board approved the lobbying effort, authorized hiring Mercury, and agreed that Islam’s company would provide sponsorship.

Myat Phyu The called the resolution a fabrication, but meeting minutes on the chamber’s website indicate the board was aware of and approved the arrangement.

The AP confirmed that Mercury organized and attended multiple Washington meetings with Castillo and others, contrary to the chamber’s claim of receiving no services.

Castillo, a former U.S. Marine, was released Sept. 16 after three months in Yangon’s Insein prison and forced to leave Myanmar after Trump administration officials intervened on his behalf.

Myanmar state media said he was deported to foster “friendly diplomatic relations,” but Castillo said no deportation order appears in his passport and he has not been informed of any verdict.

In his first public comments, Castillo urged Spanish authorities to release Islam immediately.

“Spanish authorities and Interpol should carefully scrutinize how a dispute originating within a local chamber of commerce in Myanmar has been allowed to escalate into an international law-enforcement matter,” he said.

Ye Khaung Kyaw was deported last week after being pressured to plead guilty to breach of trust, facing at least another year in Insein prison if he contested the charge, according to an anonymous observer who feared retribution.

Myanmar, engulfed in civil war, is led by President Min Aung Hlaing, who seized power from democratically elected leader Aung San Suu Kyi in 2021. He has consolidated authority and held elections critics called neither free nor fair, seeking international legitimacy. Human Rights Watch and others say the government has revised legal frameworks to suppress dissent and kept proceedings closed.

Acting Police Brig. Gen. Soe Lin Aung, a Home Affairs Ministry spokesperson, said he was unaware of Islam’s arrest, and the Foreign Ministry did not respond to requests for comment.

After his hearing, Islam was ordered held because he lacks a Spanish residence. He is appealing and will fight extradition, Carci said.

Extradition to Myanmar seems unlikely under EU rules, which permit denial if torture is a risk—a concern the United Nations has called “systematic” since the military takeover.

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