Burma Sanctions
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.
