Financial Crime World

MYANMAR: SANCTIONS SCREENING TOOLS ESSENTIAL FOR BUSINESSES

Escalating Tensions in Myanmar: A Call to Caution for Businesses

In light of recent developments and alleged human rights violations in Myanmar, businesses operating in the country are urged to exercise extreme caution. With a complex web of sanctions imposed by the EU, UK, and US, companies must be able to effectively screen their operations and transactions to avoid potential fines and reputational damage.

Overview of Sanctions Regimes

The following sections provide an overview of the sanctions regimes imposed by the EU, UK, and US:

European Union (EU) Sanctions

  • The EU has had sanctions in place against Myanmar since 1990.
  • In addition to an arms embargo and targeted asset freezing measures, the EU implemented further restrictions on export of dual-use goods and monitoring equipment after alleged human rights violations in April 2018.

United Kingdom (UK) Sanctions

  • The UK’s Myanmar (Sanctions) Regulations 2021 came into effect in April this year.
  • These regulations allow for asset freezes and travel bans on individuals suspected of undermining democracy or committing human rights abuses.
  • They also permit trade restrictions on military technology and dual-use goods.

United States (US) Sanctions

  • The US has had sanctions in place against Myanmar since 1988.
  • After a significant lifting of restrictions between 2013 and 2015, the US imposed a new sanctions regime in response to the military coup in February this year.
  • This new regime targets the Burmese military and its leaders and business interests.

The Importance of Effective Sanctions Screening

To navigate these complex sanctions regimes, businesses must have effective screening tools in place. This includes searching for individuals and entities on sanctions lists, such as:

  • The EU’s Consolidated List of Persons, Groups and Entities Subject to EU Financial Sanctions
  • The US Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List

Steps to Minimize Risk Exposure

To minimize risk exposure and avoid potential reputational damage, businesses operating in Myanmar must:

  1. Implement a robust sanctions screening program that includes regular audits and effective due diligence on all transactions and business relationships.
  2. Train employees on compliance procedures and the importance of accurate and timely reporting.
  3. Conduct thorough background checks on individuals and entities involved in business dealings.

By taking these steps, businesses can demonstrate their commitment to compliance and minimize their risk exposure in the wake of escalating tensions in Myanmar.