I haven't heard anything to suggest VISA and Mastercard don't work at Burmese ATMs. You just have to choose the right one. CB bank, KBZ and Aeryawady are the best (there are a few others too).
Aha. That means they don't have the name of the transferring party. I think that's what tripped the consulate up. Anyway, sounds like a simple explanation did it for them. So that's good