OFAC Posts General License Authorizing Certain Humanitarian Financial Transactions to Burma
The Office of Foreign Assets Control has posted a new general license under its Burmese Sanctions Regulations that authorizes certain financial transactions in support of humanitarian or religious activities by nongovernmental organizations (NGOs) in Burma (Myanmar).
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The general license was issued in consultation with the State Department in order to help facilitate the flow of funds for humanitarian assistance to the Burmese people in the wake of Cyclone Nargis.
(Prior to the issuance of the general license, sending funds to Burma, which is generally prohibited under the Burma sanctions program, would have required the issuance of a specific license by OFAC.)
Humanitarian Financial Exportations Allowed If Not to Gov't or Blocked Persons
The exportation and reexportation of financial services to Burma not otherwise authorized by 31 CFR 537.518 that are in support of not-for-profit humanitarian or religious activities in Burma (of U.S. or third-country NGOs) are authorized, provided that:
(1) The exportation or reexportation is not, directly or indirectly, to the Government of Burma; and
(2) The exportation/reexportation is not to or for the benefit of any person whose property and interests in property are blocked pursuant to 31 CFR 537.201(a), Executive Order 13448 of October 18, 2007 or Executive Order 13464 of April 30, 2008.
Certain Transactions Not Authorized, Bank Transfers
The general license does not authorize transactions with, or on behalf of, NGOs owned or controlled by the Government of Burma.
In addition, the press release states that although all transfers authorized by the general license may be made utilizing the services of blocked financial institutions in Burma, the transfers must be made through third-country banks (and no debits or credits may be made to any blocked account on the books of a U.S. financial institution).
Financial Service Exports Incident to Exporting Goods, Etc. Allowed
A note to the general license states that all other transactions otherwise prohibited by 31 CFR 537.201 and 537.202 that are ordinarily incident to an exportation to Burma of goods, technology or services, other than financial services, are authorized pursuant to 31 CFR 537.518, subject to certain conditions.
(The OFAC press release explains that existing general licenses already authorize the exportation/reexportation of financial services ordinarily incident to the exportation of goods, technology, or services, other than financial services, to Burma.)
(See ITT's Online Archives or 05/08/08, 08050840, for BP summary of recently issued Executive Order 13464 which expands the sanctions against Burma.)
OFAC's "General License No. 14" under its Burmese Sanctions Regulations available at http://www.treas.gov/offices/enforcement/ofac/programs/burma/gls/burmagl14.pdf
OFAC press release (HP-969, dated 05/07/08) available at http://www.treasury.gov/press/releases/hp969.htm