The U.S. Treasury Department issued two general licenses yesterday afternoon that, for the most part, repeal existing restrictions in the Burmese Sanctions Regulations on the provision of financial services to or making investments in Burma.
As a consequence, the provision of financial services to someone in Burma is permitted except for the provision of financial services (a) “in connection with the provision of security services” to (i) the Burmese Ministry of Defense, including its office or procurement, (ii) any state or nonstate “armed group,” a term not defined but U.S. Treasury says includes “the military,” or (iii) any entity in which the Ministry of Defense or any “armed group” owns a 50% or more interest or (b) anyone whose interests in property are blocked pursuant to the existing sanctions against Burma.
Also permitted is any new investment in Burma except for investments pursuant to an agreement with the following: (a) the Burmese Ministry of Defense, including its office of procurement, (b) any state or non-state “armed group,” a term not defined, (c) any entity in which the Ministry of Defense or any “armed group” owns a 50% or more interest or (d) anyone whose interests in property are blocked pursuant to the existing sanctions against Burma.
U.S. persons making a new investment in Burma must make reports to the State Department if the aggregate value of their investments in Burma exceeds $500,000. To be included in such reports is information pertaining to human rights, workers’ rights, environmental stewardship, land acquisition, arrangements with “security service providers” and aggregate annual payments exceeding $10,000 to Burmese government entities or state-owned enterprises. There is also a notification requirement with respect to any new investments with the Myanma Oil and Gas Enterprise.
