MYANMAR’S MILITARY HOLDING COMPANIES TARGETED BY US SANCTIONS

Yangon/Washington - U.S. Imposes Financial Sanctions on Myanmar’s Military Holding Companies

The United States has taken a significant step in its efforts to curb the power of Myanmar’s military regime by imposing financial sanctions on two prominent military holding companies, Myanma Economic Holdings Public Company Limited (MEHL) and Myanmar Economic Corporation Limited (MEC).

Background Information on MEHL and MEC

• Myanma Economic Holdings Public Company Limited (MEHL): Described as a vast and secretive conglomerate with business interests in banking, trade, logistics, construction, mining, tourism, agriculture, tobacco, food, and beverage.
• Myanmar Economic Corporation Limited (MEC): Established in 1997 to contribute to Myanmar’s economy, fulfill the needs of the military, reduce defense spending, and ensure the welfare of military personnel. Led by Sr. Gen. Min Aung Hlaing.

U.S. Treasury Department Statement

According to a statement released by the U.S. Treasury Department, MEHL and MEC have been designated for their alleged ties to Burma’s military leadership. The move aims to target the economic resources of Burma’s military regime, which is responsible for the overthrow of Myanmar’s democratically elected government and ongoing human rights abuses.

Quotes from Andrea M. Gacki, Director of OFAC

“The United States stands with the people of Myanmar and urges a return to its democratically elected government,” said Andrea M. Gacki, Director of the Office of Foreign Assets Control (OFAC). “By designating MEC and MEHL, Treasury is targeting the Burmese military’s control of significant segments of the Burmese economy, which is a vital financial lifeline for the military junta.”

Implications of the Sanctions

The sanctions prohibit U.S. persons or entities from doing business with MEHL and MEC, and any transactions involving the two companies must be reported to OFAC. The move is seen as part of a broader effort by the international community to pressure Myanmar’s military regime to return power to democratically elected leaders.

General Licenses and Related FAQs

The U.S. Treasury Department has issued four general licenses and related FAQs, which allow for certain transactions involving MEHL and MEC to proceed under specific circumstances. However, unless authorized by a general or specific license, all transactions with MEHL and MEC are prohibited under OFAC’s regulations.

Conclusion

The sanctions are seen as a significant escalation of pressure on Myanmar’s military regime, which has faced growing international condemnation for its actions since the February 1 coup. The move is likely to have far-reaching consequences for the country’s economy and could further destabilize an already volatile situation.