Myanmar Sanctions List Expansion: US Treasury Targets Burmese Ministry of Defense and Financial Institutions

The United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) has taken a significant step to curb the military regime’s access to international markets by imposing sanctions on Burma’s Ministry of Defense and two state-controlled financial institutions. This move aims to prevent the importation of arms and materiel from sanctioned Russian entities.

Background

• Burma’s military regime has been responsible for decades of repressive military rule since the 2021 coup.
• The ongoing atrocities committed against civilians have led to a severe humanitarian crisis in the country.

Designated Entities

Myanmar Ministry of Defense

The Myanmar Ministry of Defense is responsible for command and control of the armed forces. By designating this entity, the US Treasury aims to cut off the military regime’s access to international markets, particularly for arms imports.

Myanma Foreign Trade Bank (MFTB) and Myanma Investment and Commercial Bank (MICB)

These two state-controlled financial institutions act as primary foreign currency exchanges in Burma. They enable state-owned enterprises to access international markets using offshore accounts and transact with foreign entities.

Impact of Sanctions

• Prohibit all transactions with the designated entities in the United States or by US persons.
• Require any property or interests in property of the designated entities that are in the possession or control of US persons to be reported to OFAC.

Goal of Sanctions

The ultimate goal of sanctions is not to punish but to bring about positive change in behavior. By holding accountable those responsible for human rights abuses and repression in Burma, the international community aims to bring an end to ongoing atrocities and promote a peaceful resolution to the crisis.

For more information on the entities designated today, click here.