Burma (Myanmar) OFAC Sanctions
Following the 2021 military coup in Myanmar, OFAC significantly expanded Burma-related sanctions targeting the military junta, state-owned enterprises, and key economic sectors. Our lawyers advise on Burma/Myanmar sanctions compliance and SDN list matters.
Burma (Myanmar) OFAC sanctions have expanded dramatically following the February 2021 military coup. Executive Order 14014 authorized a broad new sanctions framework targeting the Myanmar military (Tatmadaw), its leaders, state-owned enterprises, and key economic sectors including jade, rubies, and timber. OFAC has designated dozens of Myanmar military officials and entities since the coup.
Burma Sanctions: Key Prohibitions and Targets
| Category | Restriction | Authority |
|---|---|---|
| Myanmar military leadership | Full SDN designation — asset freeze, transaction prohibition | EO 14014 |
| State-owned enterprises (MEC, MEHL) | SDN listed — all transactions prohibited | EO 14014 |
| Jade and rubies imports | Import of Burmese jade, rubies, and any gemstones prohibited | JADE Act / EO 13310 |
| Timber and teak | Import of Burmese teak and hardwood prohibited | JADE Act |
| New U.S. investment | New investment in Burma subject to enhanced due diligence | EO 14014 |
| Financial sector | Myanmar Foreign Trade Bank (MFTB) designated | EO 14014 |
The Office of Foreign Assets Control (OFAC) administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals. In the case of Burma, also known as Myanmar, these sanctions have been imposed to address severe human rights abuses, political repression, and corruption perpetrated by the Burmese military regime.
Understanding and complying with these complex regulations can be challenging, that’s why it’s crucial for individuals and businesses affected by the sanctions to seek expert legal assistance. Experienced sanctions lawyers can help ensure compliance with OFAC regulations and provide guidance on managing the challenges posed by these economic measures.
Background of Burma Sanctions
Burma has faced a series of international sanctions due to its government’s persistent human rights abuses, political repression, and institutional corruption. The imposition of OFAC sanctions began in response to the actions of the Burmese military junta and its impact on the country’s democratic processes.
The US sanctions on Burma were first imposed in 1988 following a violent military crackdown on pro-democracy demonstrators. This initial measure included an export ban on military goods. In 1997, the U.S. expanded its sanctions to include a ban on new investments by U.S. persons in Burma. The situation escalated further in 2003 with the passage of the Burma Freedom and Democracy Act, which banned all imports from Burma and restricted financial services exports to the country.
In 2007, the U.S. broadened its sanctions regime on Burma in response to ongoing human rights violations and political repression, imposing asset freezes on 25 senior Burmese officials and authorizing further asset freezes on individuals deemed responsible for such abuses. These measures were part of a broader international effort, with the European Union, the United Kingdom, Australia, and Canada also implementing their own sanctions programs against Burma.
The international community’s response intensified in 2021 after a military coup ousted Burma’s democratically elected government. The U.S. responded by issuing Executive Order 14014, which reintroduced previous sanctions and added new restrictions targeting the Burmese military, its leaders, and associated business interests.
Burma Sanctions Legislation
The OFAC Burma Sanctions Program began in 1997 with the enactment of the Burmese Sanctions Regulation, codified in the Code of Federal Regulations at 31 C.F.R. Part 537. Sanctions against Burma are authorized under various Executive Orders and legislative acts, which have been modified, revoked, and reissued over time to address the evolving political and human rights situation in Burma.
OFAC’s Burma sanctions are underpinned by several key legislative acts and Executive Orders, including:
- EO 13651: Prohibiting Certain Imports of Burmese Jadeite and Rubies;
- EO 13619: Blocking Property of Persons Threatening the Peace, Security, or Stability of Burma;
- EO 13464: Blocking Property and Prohibiting Certain Transactions Related to Burma;
- EO 13448: Blocking Property and Prohibiting Certain Transactions Related to Burma;
- EO 13310: Blocking Property of the Government of Burma and Prohibiting Certain Transactions;
- EO 13047: Prohibiting New Investment in Burma;
- Burma Freedom and Democracy Act of 2003: This act banned all imports from Burma and restricted financial services exports to the country;
- Tom Lantos Block Burmese JADE (Junta’s Anti-Democratic Efforts) Act of 2008: This act imposed specific sanctions against the import of jadeite and rubies from Burma.
Sanctions Against the Burmese Military
The Burmese military has engaged in a sustained campaign of repression and aggression against the citizens of Burma, particularly since the February 2021 military coup. This campaign has included airstrikes that have killed hundreds of civilians, the burning of thousands of homes, and the displacement of more than 2 million people. The military regime’s actions have led to widespread human rights abuses and a significant humanitarian crisis.
In response to these egregious actions, the United States has imposed targeted sanctions against the Burmese military. These measures include the designation of individuals and entities linked to the military regime as Specially Designated Nationals and Blocked Persons.
As part of these efforts, the U.S. has designated four individuals and two entities believed to be linked to Burma’s military regime. These designations are intended to hold accountable those responsible for the military’s abuses and to signal international condemnation of their actions.
OFAC Prohibited Transactions
Under the OFAC Burma Sanctions Program, engaging in trade and financial transactions with certain individuals and entities associated with the Burmese government is strictly prohibited. These restrictions are designed to limit the influence and financial capabilities of those involved in human rights abuses, public corruption, and support for the Burmese military regime.
The US sanctions on Burma outlines specific prohibitions, including:
Direct or indirect exportation or re-exportation of financial services: U.S. persons are barred from providing financial services to individuals and entities listed on the Specially Designated Nationals (SDN) List;
Non-exempt business or commercial transactions: any business dealings involving persons on the SDN List are prohibited unless explicitly authorized by OFAC;
Evasion and conspiracy: attempting to evade OFAC sanctions or conspiring to violate the Burma Sanctions Regulations is strictly forbidden.
Despite the comprehensive nature of these prohibitions, OFAC Burma issues general licenses to authorize activities that would otherwise be prohibited. These licenses allow U.S. persons to engage in specific transactions without needing to apply for a specific license. Examples include:
- Burma General License 1: Authorizes official business of the United States Government;
- Burma General License 3: Permits certain transactions in support of nongovernmental organizations’ activities;
- Burma General License 5: Allows the wind-down of transactions involving the Myanma Investment and Commercial Bank or the Myanma Foreign Trade Bank;
- Burma General License 6: Authorizes the wind-down of transactions involving the Shwe Byain Phyu Group of Companies.
Legal Assistance on Burma Economic sanctions
Our team of experienced OFAC lawyers is dedicated to providing comprehensive legal assistance to individuals and businesses affected by Burma economic sanctions.
We offer a range of services to support clients dealing with Burma sanctions, including:
- Compliance attorney: we help clients understand and comply with the intricate requirements of OFAC Burma sanctions, ensuring that all activities are conducted within the legal framework;
- License applications: our attorneys assist in preparing and submitting applications for specific licenses from OFAC, allowing clients to engage in otherwise restricted transactions;
- Sanctions Removal: we provide legal representation for individuals and entities seeking removal from SDN List, preparing detailed petitions and advocating on your behalf;
- Risk Assessment: we conduct thorough risk assessments to identify potential exposure to sanctions violations and develop strategies to mitigate these risks;
If you are facing challenges related to OFAC Burma sanctions, contact our expert legal team today. We are here to provide the guidance and support you need to ensure compliance, obtain necessary licenses, and protect your interests.
Frequently Asked Questions
What are Burma (Myanmar) OFAC sanctions?
Following the February 2021 military coup, OFAC expanded Burma sanctions under EO 14014. The program targets Myanmar military leaders, state-owned enterprises (MEC, MEHL), and key economic sectors. OFAC has designated dozens of Tatmadaw officials and entities connected to the military government.
Are imports from Myanmar prohibited?
The import of certain goods is specifically prohibited: Burmese jade and rubies (under the JADE Act), Burmese teak and hardwood, and goods produced by SDN-listed state enterprises. For other goods, enhanced due diligence is required to ensure no proceeds benefit sanctioned military entities.
What are MEC and MEHL and why are they sanctioned?
Myanmar Economic Corporation (MEC) and Myanma Economic Holdings Limited (MEHL) are military-controlled conglomerates that dominate large sectors of Myanmar’s economy, including gems, manufacturing, banking, and real estate. Both are on OFAC’s SDN list, meaning all transactions involving them are generally prohibited.
Can NGOs and humanitarian organizations operate in Myanmar?
OFAC has issued general licences to facilitate certain humanitarian activities in Burma, including transactions with non-designated individuals and organizations for humanitarian purposes. NGOs should carefully review which activities fall under these licences before proceeding.
Is new investment in Myanmar prohibited?
EO 14014 does not broadly prohibit new investment in Myanmar but requires enhanced due diligence to ensure investment does not benefit sanctioned military entities. Given the military’s pervasive control over the economy, practical compliance is extremely challenging. Our lawyers assess investment structures for sanctions exposure.
My company sources goods from Myanmar — what compliance steps are needed?
You should conduct thorough supply chain due diligence: (1) check all Myanmar-based suppliers and counterparties against the SDN list; (2) verify goods do not include prohibited items (jade, rubies, teak); (3) assess whether any supply chain participants are connected to MEC or MEHL. Our lawyers provide Burma-specific compliance audits. Contact: [email protected] | +357 96 447475