In May, the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) amended the Burmese Sanction Regulations, and the U.S. Department of State (State) proposed revisions to the Burma Responsible Investment Reporting Requirements, both of which would open up opportunities for trade, investment, and residence in Burma (also known as Myanmar) by U.S. persons.

OFAC’s amendments are codified at 31 C.F.R. § 537 and entered into force on May 18. One amendment updates a previously issued general license for banking services. Myanma Economic Bank and Myanma Investment and Commercial Bank were removed from the general license after being taken off of the Specially Designated Nationals and Blocked Persons (SDN) List, which removed the need for authorization to conduct financial transactions with these entities. Meanwhile, OFAC amended the general license to add Innwa Bank and Myawaddy Bank, therefore authorizing most financial transactions with these entities except for new investment or blocked persons.

OFAC also extended the previously issued General License 20 by incorporating it into the regulations. The license authorizes transactions ordinarily incident to exports to and from Burma of goods, technology, and non-financial services, provided the transactions do not involve blocked persons. Another provision now allows transactions incident to the movement of goods within Burma, when not conducted with or on behalf of a blocked person.

Additionally, the amendments provide a general license that U.S. persons can engage in transactions in Burma incident to residence in the country.

OFAC made other updates to the SDN List, removing seven state-owned enterprises and three state-owned banks. But OFAC added six companies owned 50 percent or more by Steven Law or Asia World Co. Ltd., both of whom are already on the SDN List for alleged affiliations with the former ruling military junta.

Adam J. Szubin, the Acting Under Secretary for Terrorism and Financial Intelligence, explained that “[t]hese steps will help to facilitate trade with non-sanctioned businesses and, in turn, help the people and Government of Burma achieve a more inclusive and prosperous future.”

In addition to these updates, State has proposed revisions to the Responsible Investment Reporting Requirement for Burma. The policy requires U.S. persons to report on their investments in Burma and human rights, labor rights, land rights, community consultations and stakeholder engagement, environmental stewardship, anti-corruption, arrangements with security service providers, risk and impact assessment and mitigation, and relationships with the government, Myanma Oil and Gas Enterprise, and military or non-state armed groups. The new standard is under administrative review and would raise the reporting requirement to investments of $5 million from the prior reporting requirement of $500,000.