UK Businesses Urged to Remain Compliant with Sanctions Amid Concerns Over Myanmar Land Ownership
As the Office of Financial Sanctions Implementation (OFSI) emphasizes the importance of remaining compliant with sanctions regulations, UK businesses operating in Myanmar are being advised to conduct thorough due diligence on land ownership to avoid providing financial support to sanctioned entities and individuals.
Understanding OFSI’s General Guidance
According to OFSI’s general guidance, a licence is required for any activity that falls within the licensing grounds set out in the legislation. However, these licences cannot be issued retrospectively, meaning that businesses must obtain prior permission before engaging in activities that may require a licence. Failure to do so could result in breach of financial sanctions.
Conducting Due Diligence on Land Ownership
The guidance also highlights the importance of considering whether designated persons own or control relevant land that relates to payment of ground rent. UK businesses are urged to conduct thorough due diligence on land ownership before entering into contracts to avoid inadvertently supporting sanctioned entities or individuals.
- Conduct thorough research on land ownership and control
- Verify information through reputable sources
- Ensure compliance with sanctions regulations
Staying Aware of Sanctions Imposed by Other Nations
In addition, businesses operating in Myanmar must remain aware of sanctions imposed by other nations, such as the United States and European Union, and consult relevant national guidance and legislation.
Best Practices for Responsible Business
The UK Government expects businesses to work with partners that follow best practices on responsible business, including respecting human rights in Myanmar. Businesses are also encouraged to implement the United Nations Guiding Principles of Business and Human Rights (UNGPs) and conduct ongoing due diligence.
- Respect human rights in all aspects of business operations
- Implement the UNGPs and conduct ongoing due diligence
- Work with partners that share your commitment to responsible business practices
Conclusion
The article concludes by emphasizing the importance of compliance with sanctions regulations, highlighting the potential consequences of non-compliance, and providing resources for businesses seeking guidance on sanctions and responsible business practices in Myanmar.
- OFSI’s guidance on financial sanctions
- United Nations Guiding Principles of Business and Human Rights (UNGPs)
- Resources for businesses operating in Myanmar
By following these guidelines and best practices, UK businesses can ensure compliance with sanctions regulations and maintain a positive reputation while operating in Myanmar.