Denied Party Digest

Valuable information about denied party screening

Burma Business Advisory Includes List-Based Sanctions, Due Diligence

On January 6, 2022, the U.S. Departments of State, Treasury, Commerce, Labor, Homeland Security and the Office of the U.S. Trade Representative published a business advisory addressing the risks of doing business in Burma (Myanmar).

The advisory summarizes foreign policy issues in Burma, including the February 1, 2021 overthrow of the government by the military, human rights abuses, and corruption.  It also highlights sectors of particular concern, including state-owned enterprises, gems and precious metals, real-estate and construction projects, and arms and military equipment.  Many businesses and individuals operating in these sectors are subject to sanctions imposed by the United States and other countries.  Human rights concerns include forced labor and child labor, surveillance and internet freedom restrictions, and persecution of minority groups.

As a result, individuals and entities may be found on multiple U.S. government sanctions lists, including the Entity List and the Specially Designated Nationals and Blocked Persons (SDN) List.  Careful screening and due diligence is highly recommended for any business activity in Burma.

General sanctions also apply to Burma, including:

  • §126.1 prohibited destination under the International Traffic in Arms Regulations (ITAR)
  • §§ 744.21 & 744.22 Military End User and Military Intelligence End User rules under the Export Administration Regulations (EAR)

Burma has also been on the Financial Action Task Force (FATF) Grey List since 2020 due to significant money laundering risks.