OFAC Sanctions Against Burma
In May 1997, OFAC implemented sanctions against Burma in response to Burmese government’s repression of their citizens fight for democracy in the country. Executive Order 13047 was signed by President Clinton and over the following fifteen years numerous nation-wide and smart sanctions were placed against Burma and designated persons for their continued oppression of democracy as well as human rights abuses.
Burma responded to the OFAC sanctions by making important changes within its government, including democratic reforms. Due to Burma’s positive strides, in July 2012, President Obama and OFAC began to ease some of the sanctions against Burma. Executive Order 13651 lifted parts of the country-based Burma sanctions and in October 2016, President Obama terminated the Burma sanction program.
However, in February, 2021, Executive Order (E.O.) 14014 (“Blocking Property With Respect to the Situation in Burma”) imposed economic sanctions on anyone who was determined to be operating in such sectors of the Burmese economy as determined by the Secretary of the Treasury, in consultation with the Secretary of State.
What About the August 2023 Determination of Executive Order 14014?
The August 23, 2023 proclamation determined that section 1(a)(i) of E.O. 14014 shall apply to the jet fuel sector of the Burmese economy. This means that OFAC will sanction anyone determined to operate in the jet fuel sector of the Burmese economy in accordance with the February 2021 EO 14014. This determination does not mean that anyone operating in the Burmese economy will be sanctioned by OFAC. The determination was specific to foreign persons who were found to operate in the jet fuel sector of the Burmese economy.
Moreover, a sector determination under E.O. 14014 does not automatically impose sanctions on anyone operating in the determined sector. Only those persons operating in the jet fuel sector are subject to sanctions.
Those persons who are determined to be operating in the jet fuel sector of the Burmese economy will be placed on the Specially Designated Nationals and Blocked Persons List. This determination of whether a person is operating in the jet fuel sector of the Burmese economy is made by the Secretary of Treasury in consultation with the Secretary of State.
What About Sanctions Against the Burmese Military?
The Burmese military has carried out a campaign of repression and aggression against the citizens of Burma since the February 2021 military coup. The military campaign against the Burmese people has included airstrikes that killed hundreds of Burmese civilians. Additionally, the military has burned thousands of homes and displaced more than 2 million Burmese citizens.
The military regime has been guilty of extreme discrimination against religious and ethnic groups, including wrongfully imprisoning many of the political figures of these religious and ethnic groups. These actions by the military regime of Burma have resulted in a lack of access to medical care, education, and physical security.
Due to the Burmese military regime’s actions, the United States designated four people and two entities that are believed to be linked to Burma’s military regime, as Specially Designated Nationals and Blocked Persons. This action was taken to target the military’s sources of revenue which supports their egregious abuse of Burmese civilians and targets those who provide support for arms production in Burma.
What You Need to Know
OFAC sanctions involving Burma are currently limited to those against supporters of the military and those involved in the jet fuel sector of the Burmese economy. However, this is subject to change and the tentacles of business relationships subject to sanctions can be long and tangled. Before engaging in any business or transaction with Burma or any person or entity doing business with Burma, you should seek the counsel of an experienced OFAC sanctions lawyer.
