The Office of Foreign Assets Control has published a Federal Register notice terminating the economic sanctions imposed against Burma. Specifically, OFAC has removed from the Specially Designated Nationals List those persons whose property had been blocked under the sanctions program.
OFAC’s move follows issuance of an Executive Order ending the “Emergency with Respect to the Actions and Policies of the Government of Burma” that had been in place since 1997. The Executive Order cites “Burma’s substantial advances to promote democracy”. Most vestiges of the previous military government have been removed, at least to a sufficient extent that continued U.S. economic pressure is no longer warranted. We covered previous liberalizing measures here.
Parties previously covered on the SDN List included government officials and their cronies, along with business enterprises these individuals owned or controlled. Some but not all, of those enterprises also were named on the SDN List. This placed a burden on U.S. companies wishing to do business with Burma to review the ownership of prospective partners there, to avoid being snared by the “hidden SDN” problem noted here.
Those prohibitions have been removed with the sanctions’ termination. Additionally, blocked property of Burmese SDNs is now released, and prohibition against importing Burmese jadeite and rubies, including those in jewelry, is lifted.
Following OFAC’s action, Burma can be treated as a normal trading partner. Any violations that took place beforehand, however, remain subject to penalty.
