481. If there is an active and ongoing investigation against an individual or entity for apparent violations of the Burmese Sanctions Regulations (“BSR”), would that investigation cease now that the President has ended economic and financial sanctions on Burma and the prohibitions in the BSR are no longer in effect?
Pending OFAC enforcement matters will proceed irrespective of the termination of OFAC-administered sanctions on Burma, and OFAC will continue to review apparent violations of the BSR, whether they came to the agency’s attention before or after the Burma sanctions program was terminated. Under longstanding practice, apparent sanctions violations are analyzed in light of the laws and regulations that were in place at the time of the underlying activities, and civil and criminal enforcement authorities are applied accordingly. Current or future investigations regarding apparent violations of the BSR will not be impacted by its termination and may result in OFAC enforcement actions after the termination of the BSR.
883. What does Burma General License 4 authorize?
Burma General License (GL) 4 authorizes, subject to certain conditions, all transactions and activities prohibited by Executive Order (E.O.) 14014, that are ordinarily incident and necessary to the wind down of transactions involving, directly or indirectly, Myanmar Economic Corporation Limited (MEC) or Myanma Economic Holdings Public Company Limited (MEHL), or any entity in which MEC or MEHL owns, directly or indirectly, a 50 percent or greater interest, through 12:01 a.m., eastern daylight time, June 22, 2021. Persons unable to wind down transactions prohibited by E.O. 14014 in which such blocked persons have an interest before that time are encouraged to seek formal guidance from OFAC.
For the duration of GL 4, non-U.S. persons may wind down transactions involving, directly or indirectly, MEC or MEHL, or any entity in which MEC or MEHL owns, directly or indirectly, a 50 percent or greater interest, without exposure to sanctions under E.O. 14014, provided that such wind down activity is consistent with GL 4.
While GL 4 is in effect, wind down transactions may be processed through the U.S. financial system or involve U.S. persons, as long as the transactions comply with the terms and conditions in GL 4.
1132. Does the determination of August 23, 2023, made pursuant to Executive Order (E.O.) 14014 with regard to the jet fuel sector of the Burmese economy mean that all persons that operate or have operated in this sector of the Burmese economy are sanctioned by OFAC?
No. The OFAC Director, in consultation with the Department of State, has issued a determination pursuant to E.O. 14014 that authorizes the imposition of economic sanctions on any foreign person determined to operate in the jet fuel sector of the Burmese economy.
A sector determination pursuant to E.O. 14014 exposes persons that operate in an identified sector to sanctions risk; however, a sector determination does not automatically impose sanctions on all persons who operate in the sector. Only foreign persons determined, pursuant to E.O. 14014, by the Secretary of the Treasury in consultation with the Secretary of State, to operate in the jet fuel sector of the Burmese economy are subject to sanctions.
Persons determined to operate in the jet fuel sector of the Burmese economy will be added to the Specially Designated Nationals and Blocked Persons List (SDN List).
1133. For the purposes of the determination of August 23, 2023, made pursuant to Executive Order (E.O.) 14014, what is meant by the term “jet fuel sector of the Burmese economy”?
For the purposes of the determination of August 23, 2023 made pursuant to E.O. 14014, OFAC interprets the term “jet fuel sector of the Burmese economy” to include activities related to the importation, exportation, reexportation, sale, supply, or transport, directly or indirectly, of jet fuel in or involving Burma.
OFAC does not intend to target persons for engaging in activities related to civil aviation, including the sale, provision, or purchase of jet fuel to or for commercial airlines for air transport to and from Burma. Rather, OFAC intends to target activities for or related to military regime end users in Burma, wherever situated (e.g., jet fuel used for military resupply aircraft, state-owned aircraft used by members of the military regime, and combat vehicles, including jets and attack helicopters, used in both offensive and defensive military operations inside Burma). Anyone supplying jet fuel to individuals or entities in Burma should exercise extreme caution to ensure jet fuel is provided only for use in civil aviation and not to military regime users.
1138. What does Directive 1 under Executive Order 14014, “Prohibitions Related to Financial Services to or for the Benefit of Myanma Oil and Gas Enterprise” (MOGE Financial Services Directive) prohibit?
Pursuant to the MOGE Financial Services Directive, the following activities by a U.S. person are prohibited on or after December 15, 2023: the provision, exportation, or rexportation, directly or indirectly, of financial services to or for the benefit of Myanma Oil and Gas Enterprise (MOGE).
Further, except to the extent otherwise provided by law or unless authorized by OFAC, the following are also prohibited pursuant to the MOGE Financial Services Directive: (1) any transaction that evades or avoids, has the purpose of evading or avoiding, causes a violation of, or attempts to violate any of the prohibitions of the MOGE Financial Services Directive; and (2) any conspiracy formed to violate any of the prohibitions of the MOGE Financial Services Directive.
OFAC considers the term “financial services” for purposes of the MOGE Financial Services Directive to include loans, transfers, accounts, insurance, investments, securities, guarantees, foreign exchange, letters of credit, and commodity futures or options.
1139. Does the 50 Percent Rule apply to Directive 1 under Executive Order 14014, “Prohibitions Related to Financial Services to or for the Benefit of Myanma Oil and Gas Enterprise” (MOGE Financial Services Directive)?
Yes. The prohibitions in the MOGE Financial Services Directive apply to MOGE “or its property or interests in property,” including any entity, such as a subsidiary or joint venture, that is 50 percent or more owned, directly or indirectly, by MOGE, except to the extent otherwise provided by law or unless authorized by OFAC.