As part of the U.S. Government’s ongoing response to the military coup in Burma (Myanmar), the Department of Commerce’s Bureau of Industry and Security (“BIS”) added four entities to the Entity List effective July 6, 2021 and the Department of Treasury’s Office of Foreign Assets Control (“OFAC”) added twenty-two individuals to the Specially Designated Nationals & Blocked Persons List (“SDN List”) effective July 2, 2021.
Commerce Secretary Gina M. Raimondo noted that the four entities include a satellite communications services provider to the Burmese military and three entities that have revenue-sharing agreements with Myanmar Economic Holdings Limited (“MEHL”), an entity that generates revenue for the Burmese military and which was previously added to the Entity List. As a result of the additions, licenses are required for exports, reexports, and in-country transfers of all items “subject to the EAR” to the four entities and BIS will employ a presumption of denial license review policy. The entities are:
-King Royal Technologies Co., Ltd.;
-Myanmar Wanbao Mining Copper, Ltd.;
-Myanmar Yang Tse Copper, Ltd.; and
-Wanbao Mining, Ltd.
The twenty-two individuals added to the SDN List under Executive Order 14014 include two members of the State Administrative Council currently participating in governance of Burma and the Ministers of Information; Investment and Foreign Economic Relations; Labor, Immigration, and Population; and Social Welfare, Relief, and Resettlement. Fifteen of the twenty-two added to the SDN List were added because of being either spouses or adult children of persons on the SDN List.
As a result of the SDN designations, all property and interests in property of these persons in the US or controlled by US persons must be blocked and reported to OFAC. US persons are prohibited from sending or receiving any provision of funds, goods, or services to/from these newly designated SDNs. According to OFAC’s “50% Ownership Rule,” these sanctions also extend to any subsidiaries in which these SDNs directly or indirectly hold, either individually or in the aggregate with other SDNs, an ownership interest of 50% or more.
Grant Leach is an Omaha-based partner with the law firm Husch Blackwell LLP focusing on international trade, export controls, trade sanctions and anti-corruption compliance.
Tony Busch is an attorney in Husch Blackwell LLP’s Washington, D.C. office.