International Law Advisory - Burma Sanctions General Licenses, Part II

General Licenses Authorizing Certain Financial Services with Regard to Export Transactions and Personal Remittances Issued Pursuant to Burmese Sanctions Regulations

On August 22, 2003, the US Treasury Department, Office of Foreign Assets Control ("OFAC") issued two new General Licenses under the Burmese Sanctions Regulations (31 C.F.R. Part 537), one of which (General License No. 8) authorizes many financial services associated with export-related transactions involving Burma (Myanmar).  The other general license (General License No. 6) authorizes certain non-commercial personal remittances to Burma.

General License No. 8 authorizes the use of US financial institutions in performing financial services incident to an exportation to Burma, provided that the exportation is not to a person whose property is blocked pursuant to Section 1 of Executive Order 13310.1  Payments ordinarily related to the exports are authorized even though they may involve the transfer of funds to or from the account of a Burmese financial institution whose property was blocked by the executive order, provided that the account is not on the books of a US financial institution.  The General License does not authorize a US financial institution to advise or confirm any financing by a person whose property was blocked by Executive Order 13310.

General License No. 6 allows US citizens and permanent residents to make non-commercial remittances to individuals located in Burma.  Remittances may not exceed $300 per Burmese household over the course of any three-month period. Remittances may not be made to persons who are blocked under Executive Order 13310.  US financial institutions are authorized to make payments and engage in all other transactions ordinarily incident to the remittances authorized under this general license, even if they involve funds transfers to or from financial institutions whose property is blocked by Executive Order 13310, provided that the account is not on the books of a US financial institution.  US financial institutions may rely on information provided by the US person sending a remittance in determining that the remittance fulfills the requirements listed above, provided that the financial institution does not know or have reason to know that the funds transfer is not in compliance with the terms of the general license.

Executive Order 13310 is attached, as are the two new general licenses. Companies should update their OFAC compliance screening mechanisms to ensure that any existing business relationships or future transactions are in compliance with the Burmese Sanctions Regulations.

We will continue to keep you apprised of sanctions and export control developments.  If you have any questions, please feel free to contact Ed Krauland at 202.429.8083 or Meredith Rathbone at 202.429.6437.  Individuals and groups named include: senior officials of the Government of Burma; the State Peace and Development Council (SPDC); the Union Solidarity and Development Association (USDA); the Myanma Economic Bank, the Myanma Foreign Trade Bank; the Myanma Investment and Commercial Bank; and any entity owned or controlled by, or acting or purporting to act for or on behalf of, directly or indirectly, any person whose property or interests in property are blocked pursuant to the order.