Myanmar Newsflash | June 2023 - This publication is current as of 22 June 2023

Myanmar sanctions
As many countries and international organisations have condemned the political events following the
declaration of a state of emergency on 1 February 2021, some foreign governments took action and imposed
sanctions. The United States of America (“US”) have been on the forefront and were subsequently followed
by the United Kingdom (“UK”), the European Union (“EU”) and other countries. Each of these countries
already had sanctions in place against certain Myanmar persons and organizations, but expanded them in
response to the recent escalation.

This publication provides an overview of the prohibitions and restrictions resulting from the latest sanctions,
as well as guidance on key considerations for foreign investors.

I. Overview
Effective EU USA UK
Date
Prior to 14 Individuals: 36 Individuals: 14 Individuals:
1 February
General Aung Kyaw Zaw, Major General Maung Maung General Aung Kyaw Zaw,
2021
Major General Maung Maung Soe, General Aung Kyaw Zaw, Major General Maung
Soe, Brigadier General Than Major General Khin Hlaing, Maung Soe, Brigadier
Oo, Brigadier General Aung Major General Khin Maung Soe, General Than Oo, Brigadier
Aung, Major General Khin Brigadier General Thura San General Aung Aung, Major
Maung Soe, Brigadier General Lwin, Commander-in-Chief Min General Khin Maung Soe,
Thura San Lwin, and Aung Hlaing, Deputy Brigadier General Thura
Commander of the 8th Commander-in- Chief Soe Win, San Lwin, and Commander
Security Police Battalion Brigadier General Than Oo, of the 8th Security Police
Thant Zin Oo, Staff Sergant Brigadier General Aung Aung, Battalion Thant Zin Oo,
Ba Kyaw, Commander-in- General Maung Maung Soe, Thit Staff Sergant Ba Kyaw,
Chief of the Border Police Tun Akiraphokin, Ta-Fa Chang, Commander-in-Chief of the
Naing, Brigadier General Khin Chin Sung Chang, Aung Hla, Border Police Tun Naing,
Hlaing, Commander of the Chun Ting HO, Kine Oo Oo, Brigadier General Khin
33rd Light Infantry Division Kwang Hyok Kim, Sok Chol Hlaing, Commander of the
Aung Myo Thu, Major of the Kim, La Bo Kya, Ssu Lao, 33rd Light Infantry Division
564th Light Infantry Thant Cheng Yu Li, Kai Shou Li, Aung Myo Thu, Major of
Zaw Win, a Corporal in the Thura San Lwin, Li Myint, Than the 564th Light Infantry
Border Guard Police Kyaw Oo, Hua Chiang Pao, Yu Liang Thant Zaw Win, a Corporal
Chay, Major General Nyi Nyi Pao, Yu Yi Pao, Tin Aung San, in the Border Guard Police
Swe Kuo Neng Shih, Naing Win Kyaw Chay, Major General
Thet, Shao Kuei Tuan, Moe Nyi Nyi Swe
Myint Tun, Hsueh Lung Wei,
Hsueh Yuan Wei, Cheng Yun

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 Myanmar Sanctions 22 June 2023

EU USA UK

12 Entities:
Hong Pang Electronic Industry
Co. Ltd., Hong Pang Gems &
Jewellery (HK) Co. Ltd., Hong
Pang Gems & Jewellery Co.
Ltd., Hong Pang General
Trading Co. Ltd., Hong Pang
Livestock Development Co.
Ltd., Hong Pang Mining Co.
Ltd., Hong Pang Textile Co.
Ltd., Tet Kham Gems Co. Ltd.,
Tet Kham Construction Co.
Ltd., Yangon Airways Co. Ltd.
All members of the 33rd Light
Infantry Division (33 LID) and
the 99th Light Infantry Division
(99 LID)
EU Common Position Department of State Public Notice Burma (Sanctions) (EU Exit)
1996/635/CFSP (28/10/1996) 1820 (09/07/1993) Regulations 2019
Embargo on arms, munitions Prohibition on sale of US military Embargo on arms,
and military equipment; equipment. Suspension of all munitions and military
prohibition to provide financial export licenses and other equipment; prohibition to
support in relation to military approvals to export or otherwise provide financial support in
activities; suspension of non- transfer defence articles or relation to military activities;
humanitarian aid and defence services to Myanmar. suspension of non-
development programs. humanitarian aid and
development programs.
EU Council Regulation Department of State
1081/2000 (22/05/2000) Determination (18/12/2019) Export ban of any
equipment that might be
Additional export ban of any Prohibition on the provision of
used for internal repression.
equipment that might be used certain defence articles and
for internal repression. defence services. Prohibition on the export of
dual-use goods to the
EU Council Regulation
military and border guard
2018/655 (26/04/2018)
police end users, the export
Confirmed the relevance of the of equipment for monitoring
existing arms embargo and communications that might
expanded the restrictive be used for internal
measures with a prohibition on repression, as well as
the export of dual-use goods military training and military
to the military and border cooperation.
guard police end users, the
export of equipment for
monitoring communications
that might be used for internal
repression, as well as military
training and military
cooperation.

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 Myanmar Sanctions 22 June 2023

Effective EU USA UK
Date
Additional 78 Individuals: 101 Individuals: 20 Individuals:
after
Commander-in-Chief of the Commander-in-Chief of Minister for Home Affairs
1 February
armed forces Min Aung Myanmar military forces Min and the Minister for the
2021
Hlaing, General Myint Swe, Aung Hlaing, Deputy Office of the Union
Deputy Commander-in-Chief of Commander-in-Chief of the Government Soe Htut,
the armed forces Soe Win, Myanmar military forces Soe Deputy Minister for Home
General Sein Win, General Win, General Myint Swe, Affairs and Chief of Police
Thein Soe, General Mya Tun General Sein Win, General Soe Than Hlaing, Minister of
Oo, General Dwe Aung Lin, Htut, General Ye Aung, General Defence and Member of the
General Ye Win Oo, General Mya Tun Oo, Admiral Tin Aung State Administrative Council
Maung Maung Kyaw, General San, General Ye Win Oo, and Mya Tun Oo, Commander-
Moe Myint Tun, General Than General Aung Lin Dwe, General in-Chief of the Armed
Hlaing, Member of the State Moe Myint Tun, General Maung Forces Min Aung Hlaing,
Administrative Council Mahn Maung Kyaw, Chief of the Commander-in- Chief of the
Nyein Maung, Member of the Myanmar Police Forces Than Burmese Navy and Member
State Administrative Council / Hlaing, General Aung Soe, of the State Administrative
Chairman of the New National Aung Pyae, and Khin Thiri Thet Council Tin Aung San,
Democracy Party (NNDP) Mon, Member of the State Commander-in-Chief of Air
Thein Nyunt, Member of the Administrative Council Mahn Force and Member of the
State Administrative Council / Nyein Maung, Member of the State Administrative Council
Chairman of the National State Administrative Council Maung Maung Kyaw,
Democratic Party (NDF) Khin Thein Nyunt, Member of the Secretary of the State
Maung Swe, Member of the State Administrative Council Sai Administrative Council
State Administrative Council / Lone Saing, Member of the Aung Lin Dwe, Member of
Vice-chair of the Arakan State Administrative Council the State Administrative
National Party Aye Nu Sein, Khin Maung Swe, Minister of Council Moe Myint Tun,
Member of the State International Cooperation Ko Ko Joint Secretary of the State
Administrative Council Jeng Hlaing, Minister for Ethnic Affairs Administrative Council Ye
Phang Naw Htaung, Member Tun Aung Myint, Minister of Win Oo, Chairman of Htoo
of the State Administrative Border Affairs Tun Tun Naung, Group of Companies U Tay
Council Maung Ha, Member of Governor of the Central Bank of Za, Union Attorney General
the State Administrative Burma Than Nyein, Minister of Thida Oo, Chairman of the
Council Sai Long Hseng, Commerce Pwint San, Minister Union Election Commission
Member of the State for Planning, Finance, and Thein Soe, Chairman of the
Administrative Council Saw Industry Win Shein, Chairman of Anti-Corruption Commission
Daniel, Member of the State the Union Election Commission Tin Oo, Director of Dynasty
Administrative Council Dr Thein Soe, Minister of Health International Company Ltd
Banyar Aung Moe, Minister and Sports Thet Khaing Win, Dr Aung Moe Myint,
for Information U Chit Naing, Minister of Natural Resources Managing Director of
Lieutenant General Soe Htut, and Environmental Conservation Myanmar Chemical and
Lieutenant General Tun Tun Khin Maung Yi, Member of the Machinery Co Ltd (MCM)
Naung, Minister for Planning, State Administrative Council Saw Aung Hlaing Oo,
Finance, and Industry Win Daniel, Member of the State Commander-in-Chief of the
Shein, Colonel Khin Maung Administrative Council Banyar Myanmar Air Force General
Yi, Commander-in-Chief of the Aung Moe, Member of the State Htun Aung, Director and
Myanmar Navy Tin Aung San, Administrative Council Aye Nu sole shareholder of Asia
Attorney-General Thida Oo, Sein, Minister for Information Sun Trading Zaw Min Tun,
Major General Aung Lin Tun, Chit Naing, Minister for former Director and
Brigadier-General Zaw Min Investment and Foreign shareholder of Asia Sun
Tun, Minister for Investment Economic Relations Aung Naing Trading Win Kyaw Kyaw
and Foreign Economic Oo, Minister for Labor, Aung, Director and
Relations Aung Naing Oo, Immigration, and Population Shareholder of Shoon
Minister of Industry Charlie Myint Kyaing, Minister of Social Energy Pte. Ltd. Khin Phyu
Than, Welfare, Relief and Resettlement Win, Director of Star
Thet Thet Khine, Sapphire Trading Tun Min
Latt

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 Myanmar Sanctions 22 June 2023

Minister of Social Welfare, Managing Director of 26 Entities/organisations:

Relief and Resettlement Thet International Gateways Group of Myanmar Economic
Thet Khine, Minister of Company Limited Naing Htut Corporation Ltd., Myanma
Information Maung Maung Aung, Managing Director of Economic Holdings
Ohn, Member of the State Myanmar Chemical and Public Company Ltd.,
Administrative Council Shwe Machinery Co. Ltd. Aung Hlaing Myanmar Gems
Kyein, Member the Union Oo, Managing Director of Enterprise, Myanma
Yatanarpon Aviation Support Sit Timber Enterprise,
Election Commission Aung
Taing Aung, the adult children of Myanmar Pearl
Moe Myint, Member the Union Enterprise, State
Election Commission Than General Maung Maung Kyaw –
Administration Council
Tun, Member the Union Hein Htet and Kaung Htet, the
(SAC), Htoo Group of
adult child of Admiral Tin Aung Companies, Directorate of
Election Commission Aung
San – Yin Min Thu, the spouse Defence Industries,
Saw Win, Member the Union
of General Min Aung Hlaing - Directorate for Defence
Election Commission Saw Ba
Kyu Kyu Hla, the spouse of Procurement,
Hline, Member the Union
General Soe Win - Than Than Quartermaster General
Election Commission Soe Oo, Office, Myanmar War
New, the spouse of General Mya
Member the Union Election Tun Oo - Thet Thet Aung, the Veterans Organization,
Commission Than Soe, spouse of Admiral Tin Aung San Dynasty International
Member the Union Election – Than Than Aye, the spouse of Company Ltd., Myanmar
Commission Bran Shaung, Chemical and Machinery
General Maung Maung Kyaw -
Company Co. Ltd. (MCM),
Member the Union Election Aung Mar Myint, the spouse of Miya Win International
Commission Myint Oo, Lieutenant General Moe Myint - Ltd., Myanmar New Era
Member the Union Election Khaing Pa Pa Chit, the adult Trading Company Ltd.,
Commission Khin Maung Oo, children of Lieutenant General Sky Aviator Company
Member the Union Election Moe Myint Tun - Moe Htet Htet Ltd., Synpex Shwe
Commission Nu Mya Zan, Tun, Khaing Moe Myint and Company Ltd., Star
Member the Union Election Yadanar Moe Myint, the spouse Sapphire Group of
of Lieutenant General Ye Win Oo Companies, International
Commission Myint Thein,
- Daw Nilar, the adult child of Gateways Group of
Member the Union Election Companies Limited (IGG)
Commission Ba Maung, Lieutenant General Ye Win Oo -
and Sky One Construction
Member of the Myanmar Theit Thinzar Ye, the spouse of Company Ltd., Office of
Armed Forces Tayza Kyaw, Lieutenant General Aung Lin the Chief of Military and
Brigadier General Ni Lin Dwe - Ohn Mar Myint, the adult Security Affairs, Asia Sun
Aung, Lieutenant General children of Lieutenant General Trading Company
Aung Zaw Aye, Minister for Aung Lin Dwe - Shwe Ye Phu Limited, Cargo Link
Aung, Hlaing Bwar Aung, and Company Limited, Shoon
Investment and Foreign
Phyo Arkar Aung, Member of Energy Pte. Ltd.
Economic Relations Dr. Kan
Zaw, Chief Justice of the the State Administrative Council All members of the 33rd
Supreme Court Htun Htun, Mahn Nyein Maung, Member of Light Infantry Division (33
Director-General of the the State Administrative Council LID) and 99 Light Infantry
Prosecution Department Swe Thein Nyunt, Member of the Division (99 LID)
Swe Aung, Director General of State Administrative Council Sai
the Prisons Department Zaw Lone Saing, Member of the
Min, Deputy Director of the State Administrative Council
Prison Department U Zaw Lin Khin Maung Swe, Minister of
Aung, Chairmen of the Anti- International Cooperation Ko Ko
Corruption Commission U Hlaing, Minister for Ethnic Affairs
Than Swe, Member of the Tun Aung Myint, Minister of
Union Election Commission Border Affairs Tun Tun Naung,
Min Min Oo, General Htun Governor of the Central Bank of
Aung, Lieutenant General Myanmar Than Nyein, Minister
Phone Myat, Lieutenant of Commerce Pwint San,
General Aung Soe, Lieutenant Minister for Planning, Finance
Thet Pon, Major General Htein and Industry Win Shein,
Win, Major General Htin Latt Chairman of the military-
Oo, Brigadier General Than appointed Union Election
Htike, Commission Thein Soe,

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 Myanmar Sanctions 22 June 2023

Major General Nyunt Win Minister of Health and Sports

Swe, Chairmen of the Htoo Thet Khaing Win, Minister of
Group U Tay Za, Director of Natural Resources and
Dynasty International Company Environmental Conservation
Limited Aung Moe Myint, Khin Maung Yi, the adult child of
SAC member General Maung
Director of International Group
Maung Kyaw - Hein Htet, adult
of Companies Naing Htut
child of General Maung Maung
Aung, Chair of Myanmar
Kyaw - Kaung Htet, the adult
Chemical and Machinery Aung
child of SAC member Admiral Tin
Hlaing Oo, former Director of
Aung San - Yin Min Thu, Chief
Yatanarpon Aviation Support
Minister of the Bago Region of
Company and Suntac Group of
Burma Myo Swe Win, the Chief
Companies Sit Taing Aung,
Minister of Kayin State in Burma,
Director of Sky Aviator Kyaw
Saw Myint Oo, the Chief
Min Oo, Commander-in-Chief
Minister of the Mandalay Region
of the Myanmar Navy Moe
of Burma Maung Ko, the Chief
Aung, Chief of General Staff
Minister of Kachin State in
Maung Maung Aye,
Burma Khat Htein Nan, Union
Lieutenant Colonel Myo Myint
Attorney General Thida Oo,
Aung, Major General Zin Min
Chief Justice of Burma’s
Htet, Major General Ko Ko
Supreme Court Tun Tun Oo,
Maung, Union Minister of
Chairman of the Anti-Corruption
Energy Myo Myint Oo, Deputy
Commission Tin Oo, CEO of KT
Minister of Home Affairs Toe Ui
Group Jonathan Myo Kyaw
Thaung, business owner Tay
18 Entities/organisations: Za, the adult children of Tay Za -
Htoo Htet Tay Za and Pye Phyo
Myanmar Economic
Tay Za, Director of Dynasty
Corporation Ltd., Myanma
International Company Limited
Economic Holdings Public
Hlaing Moe Myint, Director of
Company Ltd., Myanma
Dynasty International Company
Gems Enterprise, Myanma
Limited Myo Thitsar, Director of
Timber Enterprise, Forest
Dynasty International Company
Products Joint Venture
Limited Aung Moe Myint,
Corporation Limited,
Director of Sky Aviator Company
Myanmar War Veterans
Limited Kyaw Min Oo, Union
Organization, Htoo Group of
Minister of Energy Myo Myint
Companies, International Oo, Managing Director of
Group of Entrepreneurs Myanma Oil and Gas Enterprise
Company Limited, No. 1 Aung Min, Deputy Managing
Mining Enterprise, Myanma Director of Myanma Oil and Gas
Oil and Gas Enterprise, the Enterprise Than Min,
State Administration Council Commander-in-Chief Myanmar’s
(SAC), Myanmar Office of the Air Force Htun Aung, Pro-
Quarter Master General, regime activist Hla Swe, the
Myanmar Directorate of adult daughter of Tay Za Htoo
Defense Industries, Myanmar Htwe Tay Za, arms-dealer Tun
Directorate of Defense Min Latt, wife of Tun Min Latt
Procurement, Asia Sun Win Min Soe
Group,
Dynasty International
Company Ltd., International
Gateways Group of
Company Ltd., Sky Aviator
Company Ltd.,Office of the
Chief of Military Security
Affairs

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 Myanmar Sanctions 22 June 2023

40 Entities/organisations

Cancri Gems & Jewellery Co.,

Ltd., Myanmar Imperial Jade
Co., Ltd., Myanmar Ruby
Enterprise Co., Ltd, A & M
Mahar Co., Ltd., Sky One
Construction Co., Ltd., The
Yangon Restaurant, The
Yangon Gallery, Everfit
Company Limited, Seventh
Sense Co. Ltd., Myanmar
Economic Corporation Ltd.,
Myanma Economic Holdings
Public Company Ltd., Myanmar
Gems Enterprise, Myanma
Timber Enterprise, Myanmar
Pearl Enterprise, the State
Administrative Council, King
Royal Technologies Co., Ltd.,
Wanbao Mining Ltd. and its two
subsidiaries, Myanmar Wanbao
Mining Copper, Ltd. and
Myanmar Yang Tse Copper,
Ltd., Directorate of Defense
Industries, Quartermaster
General Office, Myanmar War
Veterans Organization, KT
Services & Logistics Company
Limited, Directorate of
Procurement of the
Commander-In-Chief of Defense
Services, Htoo Group of
Companies, Asia Green
Development Bank Ltd, Sky
Aviator Company Ltd., Union
Election Commission, Mining
Enterprise No. 1 and No. 2, Asia
Sun Group, Asia Sun Trading
Co. Ltd., Cargo Link Petroleum
Logistics Co. Ltd., Star
Sapphire Group of Companies
(a.k.a. Kyei Nilar Company),
Star Sapphire Group Pte. Ltd.,
Star Sapphire Trading Company
Limited, Ministry of Defense,
Myanma Foreign Trade Bank,
Myanma Investment and
Commercial Bank
All members of the 77th Light
Infantry Division (77 LID)
Executive Order (“EO”) 14014
(11/02/2021)

EO 14014 provides the US

authority to impose sanctions on
any foreign person determined
by the secretary of the treasury,
in consultation with the secretary
of state, to engage in specific
categories of activity.

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 Myanmar Sanctions 22 June 2023

1. EU Sanctions 2. US Sanctions
The EU had suspended the vast majority of its previous Following the democratic elections of 2015, the US
sanctions and import, export and investment lifted most trade, export and investment restrictions on
restrictions in response to the 2012 elections. Merely Myanmar. The main restriction maintained after the
the embargo on arms and equipment which might be elections was the embargo on arms trade.
used for internal repression as well as the provision of
In response to the Rakhine crisis, the US designated
technical services, financial services and financial
Myanmar as a country whose government has armed
assistance to military related activities remained in
forces or government supported armed groups that
place.
recruit and use child soldiers. Pursuant to the Child
Following the humanitarian crisis in Rakhine in 2017, Soldier Prevention Act, certain security assistance and
the EU expanded its restrictive measures by adding a commercial licenses of military equipment with
prohibition on export of dual-use goods to military and Myanmar were prohibited. On 18 December 2019, the
border guard police end users, restrictions on the US further designated Myanmar as a country of
export of equipment for monitoring communications particular concern pursuant to the International
that might be used for internal repression, as well as Religious Freedom Act, leading to a ban on the
military training and military cooperation. The EU provision of defence equipment and services, and
further implemented restrictive measures targeting imposed sanctions targeting certain individuals, groups
14 individuals with a military background. and entities associated with the Myanmar military
under to the Global Magnitsky Act.
In response to the political developments that took
place since 1 February 2021, the EU has on Following the violent developments since
22 March 2021 imposed restrictive measures against 1 February 2021, Executive Order (“EO”) 14014 was
11 Myanmar military associated individuals. Ten more issued, authorizing the Office of Foreign Assets Control
individuals and two entities were added on (“OFAC”) to impose new sanctions against individuals,
19 April 2021. Further sanctions subsequently groups and entities designated on the Special
followed on 21 June 2021 against eight individuals and Designated Nationals and Blocked Person List (“SDN-
four entities, on 22 February 2022 against List”).
22 individuals and four entities, and on
A designation on the SDN-List results in immigration
8 November 2022, designating 19 individuals and the
restrictions (travel bans) and financial restrictions
State Administration Council (SAC) to the EU sanction
(asset freeze). The asset freeze blocks all property and
list. On 20 February 2023, the EU imposed a sixth
interest in property of a designated person within the
round of sanctions adding nine individuals and
US or within the possession or control of a US person
seven entities to its sanction list.
(every individual or entity inside US territory, US
The measures imposed on designated individuals citizens, US permanent resident aliens outside US
comprise movement restrictions (travel bans) and territory and entities organized under the laws of the
financial sanctions (asset freeze). The asset freeze US or any jurisdiction within the US, as well as their
blocks all funds (e.g. cash, shares, bonds, interests, foreign branches).
deposits) and other economic resources (e.g. non-
US persons are generally prohibited from engaging in
financial assets such as property or vehicles
any transaction involving a designated person and
irrespectively of their location) of a designated person,
entities which are, directly or indirectly, “owned” by a
as well as entities which are, directly or indirectly,
designated person, as well as their property or interest
“owned” or “controlled” by a designated person.
in property. Any such property or interests must be
Accordingly, it is prohibited to make such funds or
reported to the OFAC.
economic resources available to designated persons or
entities owned or controlled by them. Transactions include any contribution or provision of
funds, goods, or services by, to, or for the benefit of a
The EU sanctions are binding for all citizens of the EU designated person.
and entities incorporated or constituted under the laws
of a member state, regardless of whether they are It is noteworthy that the prohibition to engage in
doing business within or outside of the EU. They also transactions may also extend to non-US persons, where
apply to any business carried out in whole or in part such persons have a US nexus.
within EU territory.

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 Myanmar Sanctions 22 June 2023

US nexus means a sufficient connection or link to the

On 29 March 2021, the US further suspended the 2013
US or persons within the US. This may include the
Trade and Investment Framework (TIFA), which
sourcing of goods or services from the US or other
provides a bilateral platform for ongoing dialogue and
involvement of persons within the US for export to or
cooperation on trade and investment issues. The
other transaction with a designated person. A US
Department of State reiterated that the US will “continue
nexus could also be created if funds pass through the
to take action to promote accountability from the
US financial system or a US financial institution, which
Myanmar military and support the democratically-
is usually the case with US Dollar denominated
elected government”.
transactions. Unlike past US sanctions, the current
measures do however not restrict investments or the On 17 May 2021 the US designated the State
export of financial services to the Myanmar government Administrative Council (SAC) for being a political
per se. subdivision, agency, or instrumentality of the
Government of Myanmar. However, the designation
On 18 February 2021, the U.S. Commerce’s Bureau of
does not automatically extent to all the members of the
Industry and Security (“BIS”) separately imposed
SAC, some of whom have been individually
restrictions on exports of sensitive items to Myanmar’s
designated. Further rounds of sanctions took place on
Ministry of Defence, Ministry of Home Affairs, the
2 July 2021, 10 December 2021, 31 January, 25 March,
Myanmar armed forces and the Myanmar security
6 October 2022, 8 November 2022, 31 January 2023,
services. As a result, the BIS applies a presumption of
24 March 2023 and 21 June 2023, adding several more
denial for items requiring a license for export to these
individuals and entities to the SDN-List.
departments or agencies. In addition, BIS revoked
certain license exceptions in whole or in part, which 3. UK Sanctions
were previously available to Myanmar as a result of its
country group placement under the Export Under the Burma (Sanctions) (EU Exit) Regulations
Administration Regulations (“EAR”) and previously 2019 (“Sanction Act”), the UK maintained the pre-
issued licenses to the above departments and existing EU trade prohibitions on certain military goods
agencies that have not been fully utilized. and services as well as financial and immigration
sanctions against selected Myanmar individuals that
On 8 March 2021, the BIS expanded its restrictions on were imposed in reaction to the Rakhine conflict.
exports and re-exports of sensitive items subject to the
EAR, downgrading Myanmar’s country group to a more In response to the political events since 1 February
restrictive license application review group and 2021, the UK has designated additional individuals and
applying a presumption of denial standard. It added companies associated with the Myanmar military to the
Myanmar to the EAR’s category of arms-embargo Office of Financial Sanctions Implementation’s (“OFSI”)
countries subject to BIS’ licensing policy for “military List. Similar to the EU sanctions, designated persons
end use” and “military end users” as well as its licensing are subject to immigration (travel bans) and financial
policy for national security-controlled items. Under sanctions (asset freeze). The asset freeze blocks all
these policies, BIS reviews all applications for items funds (e.g. cash, shares, bonds, interests, deposits)
destined for Myanmar involving “military end use” and and other economic resources (e.g. non-financial
“military end users”, using a presumption of denial assets such as property, vehicles) of the designated
standard. Accordingly, the BIS added the Ministry of person and further prohibits to make such funds or
Defence, the Ministry of Home Affairs, Myanmar economic resources available to any designated
Economic Corporation Limited and Myanma Economic person.
Holdings Public Company Limited, Myanmar Wanbao The imposed restrictions apply within the territory of the
Mining Copper Company Limited, Wanbao Mining UK and in relation to the conduct of UK persons outside
Limited, and King Royal Technologies Company the UK. The term “UK persons” refers to all citizen as
Limited to the Entity List, essentially banning any well as all entities incorporated or constituted under the
exports under the EAR to these entities. On law of any part of the UK (including foreign branches of
2 March 2023, the BIS further added FISCA Security & UK corporations).
Communication Company Limited, the Ministry of
Transport and Communications, and Naung Yoe 4. Other countries
Technologies Company Limited to the Entity List. Australia, New Zealand, Canada and Switzerland each
have imposed sanctions that may differ from the above.

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 Myanmar Sanctions 22 June 2023

II. Guidance of the propriety rights in an entity. Control is defined by

a series of criteria, including the right to appoint a
Overseas investors should carefully consider potential majority of the board of directors or supervisory body,
implications for their existing and future business the right to control a majority of shareholders' rights or
activities related to Myanmar. the ability to exercise dominant influence over an entity.

1. Scope of application In the UK, an entity is considered owned by a

designated person, if he or she directly or indirectly
Restrictions may apply to investors either as a matter holds more than 50% of the shares and/or voting rights
of law, under the particular national sanctions law, or in the entity, and/or has the right to appoint or remove
as a contractual obligation if the parties have agreed to a majority of the board of directors of the entity. It is
comply with specific sanctions. considered controlled by a designated person, if such
Overseas investors should review such contractual person would be directly or indirectly able to influence
provisions carefully, as they may go beyond or the management of the entity.
differentiate from the restrictions under the applicable US laws refer to ownership of 50% or more in the
sanction regime. The failure to comply with such aggregate of an entity.
contractual obligations may result in a breach of
contract or an event of default. Overseas investors should further keep in mind that
major conglomerates (e.g. Myanmar Economic
In relation to the international sanction regime, Corporation Limited (MEC) and Myanma Economic
overseas investors should assess carefully whether Holdings Public Company Limited (MEHL)) have
they, their portfolio of products and services or their investments and subsidiaries across a wide range of
employees and business partners are subject to industry sectors. The UK sanction list identifies 40 of
statutory restrictions. MEHL’s subsidiaries and 64 of MEC’s subsidiaries,
Sanctions may apply beyond nationalities and place of operating in industries such a consumer products,
incorporation (for example, US restrictions also apply tourism, telecommunications and mining.
to non-US persons with US-nexus) and employees Under the aforementioned criteria of ownership and
may be exposed due to nationality or place of control, these subsidiaries may be subject to sanctions
residency. as well.
2. Designated persons 3. Trade prohibitions and export
Most western countries have added certain individuals restrictions
and entities to their national sanction lists. The
Most western countries have issued trade prohibitions
designated persons are subject to financial and
and export restrictions on certain military associated
immigration sanctions (please see above).
goods, technologies and services (including dual use
Overseas investors should perform rigorous due goods and technologies, goods and technology which
diligence checks of their existing and future Myanmar may be used for internal repression, as well as
business partners to ensure that they are not engaging financing or financial assistance related to military
in prohibited transactions. This should extend to a activities).
careful screening of the ownership structure of
Overseas investors should consider the risk in relation
companies. The US prohibition on engaging in
to their product and service portfolio and the sector they
transactions extends to entities which are not explicitly
are operating in.
designated but “owned” by a designated person. Both
the EU and UK sanctions extend asset freezes and
prohibitions on the provision of funds and economic
resources to entities “owned” or “controlled” by a
designated person.
The EU framework defines ownership by a designated
person as directly or indirectly holding more than 50%

9 | Luther Law Firm Limited | Luther Corporate Services Limited

 Myanmar Sanctions 22 June 2023

4. Prohibited transactions 6. Contractual protection

The EU, US and UK use so-called smart financial The international sanction regime may have direct
sanctions, targeting specific persons, groups and implications on the movement of goods, materials,
entities in Myanmar. These financial sanctions include equipment and capital, and the aforementioned
an obligation to freeze all funds and economic restrictions may result in a delay or cancellation of
resources of the targets. Generally, an asset freeze contractual obligations.
imposes an across-the-board prohibition for the person
In relation to contractual relief, overseas investors may
in possession or control of the designated person’s
be able to rely on contractual “force majeure”
assets on transfers or dealings of any kind with regard
provisions, specific contractual provisions dealing with
to these assets.
the consequences of sanctions, or general regulations
The EU and UK sanctions also extend to a ban on under the applicable law (e.g. the doctrine of
making funds and economic resources available to a frustration). Such provisions may enable the investor
designated person. The broad term “economic to seek relief from performance, an extension of time or
resources” comprises any tangible or intangible, even a termination of the contract.
movable or immovable assets which are not funds but
While force majeure will often be the first option to
may be used to obtain funds, goods or services. The
consider, investors should keep in mind that such
asset freeze measures may also extend to the
clauses may not provide for a “general relief” in any
provision of labour or services to a designated person
case of civil strikes, armed conflicts or international
(or entity that is “owned” or “controlled” by a designated
sanctions, but require a close case-by-case
person) if the provision of such services may enable the
examination.
designated person to obtain funds, goods or services.
The circumstances in which investors are allowed to When negotiating contracts related to Myanmar,
provide labour or services to designated persons are overseas investors should consider incorporating
subject to a strict case-by-case interpretation. Investors relevant warranties and sanction clauses, addressing
subject to EU/UK sanctions should carefully consider the impact of (sanction) scenarios and a smooth exit.
whether and to what extent their portfolio of services
7. Investment protection
could enable a designated person to obtain funds,
goods or services. Overseas investors may also have access to relief and
remedial options under Myanmar’s bilateral and
The US sanctions go further and extend to a broader
multilateral investment treaties, such as the ASEAN
prohibition on any transactions or dealings involving a
Comprehensive Investment Agreement, which accords
designated person (or any entity “owned” by such
in Article 12 “non-discriminatory treatment in the event
person), including assets and services of any kind. This
of armed conflict or civil strife or state of emergency” to
may also affect the winding up of business relations
investors.
with designated persons, which may require express
authorisation by the US government. 8. Reputational Risk
5. Risk-based vs. strict liability approach Finally, in addition to the legal risks presented in this
article, international investors should also consider
The EU and UK accept a risk-based approach in
potential reputational risks resulting from any
ensuring compliance with sanctions and allow for a due
transactions with sanctioned individuals or
diligence defence. This means, that EU/UK investors
corporations.
may not be held liable if they had appropriate risk-
management controls in place, but did not know or had
no reasonable cause to suspect that their actions
violate sanction laws.
In contrast, US sanctions apply on a strict liability basis,
meaning that investors subject to US sanction
obligations may be liable even if they did not know or
had no reason to know they were in breach.

10 | Luther Law Firm Limited | Luther Corporate Services Limited

Luther in Myanmar
Active in Myanmar since 2013, Luther is one of the largest law firms and corporate services providers in Yangon. Our international
team of more than 50 professionals consist of lawyers, tax consultants, corporate secretaries and accountants from Germany,
France, Italy and Myanmar.

With our “one-stop” service solution, Luther Law Firm Limited and Luther Corporate Services Limited provide a comprehensive
range of services to assist and advise clients in all stages of the business lifecycle, namely, from the establishment of a Myanmar
business, through on-going legal and tax advice, bookkeeping, accounting, payroll and payment administration up to the dissolution
of enterprises.

We devise and help our clients to implement legal, tax and corporate compliance structures that work and let them focus on being
successful in Asia’s last frontier market. Myanmar’s legal framework is governed by both old and new laws and regulations, as well
as internal policies and practices of the Myanmar authorities. Many laws dating back to the colonial and post-independence periods
are, with more or less changes, still in force. Since its political and economic opening in 2011, Myanmar has embarked on a
comprehensive reform process and is currently overhauling its legal framework.

Our local and international colleagues have the necessary knowledge, experience and commercial expertise to serve our more
than 450 clients in this rapidly developing country, including multinational investors, MNCs and SMEs, development organisations,
embassies, NGOs and local conglomerates.

To advise each client in the best possible way, our lawyers and tax advisors – in addition to their specialised legal and tax expertise
have expert knowledge of specific industries.

Further, our team members are well connected and actively participating and holding positions in various chambers to stay abreast
of the latest developments, such as the European Chamber of Commerce in Myanmar, the German Myanmar Business Chamber,
the British Chamber of Commerce and French Myanmar Chamber of Commerce and Industry.

We offer pragmatic solutions and recommendations based on best practice guidelines. We never compromise on quality and we
always put our clients first. Our lawyers are trained to deliver work products that comply with the highest standards and we will not
settle for less.

“The Legal 500 Asia-Pacific 2022“ ranked In 2022, both Luther Myanmar and Alexander
Luther Myanmar in Band 3 and shortlisted the Bohusch individually were ranked in Band 3 by
firm as Law Firm of the Year - Myanmar Chambers Asia Pacific.

SOUTHEAST ASIA CHAMBERS

AWARDS 2022
2021 / 22

11 | Luther Law Firm Limited | Luther Corporate Services Limited

Legal advisory services

Our international and Myanmar lawyers provide

comprehensive legal and tax advice in all areas of corporate
and commercial law, including:

Foreign direct investment and market entry Non-profit sector

■ Support and advice on the choice of location ■ Advice on the appropriate legal structures for NGOs,
■ Advice with regard to the appropriate market entry and development organisations, foundations, social enterprises
restrictions under the Myanmar Investment Law and charities
■ Representation vis-à-vis regulatory authorities ■ Registration of companies limited by guarantee,
■ Application for Permits and Endorsements under the associations and NGOs
■ Myanmar Investment Law 2016 and the Special Economic ■ Application of tax exemptions
Zone Law 2014
Compliance
Establishment of a Myanmar business ■ Anti-corruption compliance
■ Advising on the type of entity to be established and the ■ Corporate governance and corporate compliance
optimal corporate & tax structure ■ Labour law compliance
■ Incorporation of limited companies and registration of ■ Regulatory compliance
foreign corporations (“Branch or Representative Offices“) ■ Tax compliance

Corporate law, investment structuring and jointventures Employment and labour law
■ National and international joint ventures, PPP projects ■ Employment and secondment contracts, employment policies
■ Capital measures (increase and reduction in capital, cash ■ Registration of employment contracts with Myanmar labour
and in kind) authorities
■ Advice to members of executive and supervisory boards ■ Corporate restructuring, redundancy and compensation plans
■ Shareholders agreements, constitutions and rules of
procedure Immigration law
■ Disputes among shareholders ■ Visa, long-term stay permits and foreigner registration
cards
M&A advisory ■ Labour Cards
■ Support in M&A, domestic and cross-border acquisitions ■ Form C (Occupation of Residential Premises)
by asset or share deal
■ Due diligence Contract law
■ Corporate restructuring measures ■ Negotiation and drafting of commercial agreements
■ Post-merger / closing integration ■ Registration of deeds and contracts with the authorities
■ Advice and assistance on stamp duty payments
Finance advisory
■ Banking, finance and insurance law International trade and distribution law
■ Corporate finance ■ Registration of foreign trading companies
■ Loan and security agreements ■ Review of general terms and conditions
■ Registrations with the Central Bank and FRD ■ Supply and procurement agreements
■ Legal opinions ■ Distributorship and sales agency agreements

Real estate law Intellectual property law

■ Sale and purchase agreements and leases ■ Development and implementation of IP protection
■ Financing structures strategies
■ Registration of trademarks, designs and patents
■ License agreements, research and development
agreements

12 | Luther Law Firm Limited | Luther Corporate Services Limited

 Tax advisory and business process outsourcing services

Our tax advisors, company secretaries and accountants support

clients with a complete range of BPO services, including:

Corporate secretarial services Accounting and financial reporting

■ Provision of personnel to assume statutory positions ■ Bookkeeping
– Company secretary – Setting up the chart of accounts
– Nominee director / officer – Recording of all payments and funds received
■ General statutory compliance services – Preparation of monthly bank reconciliation statements
– Advice on best practice, corporate governance and – Recording of all sales, purchase and trade debtors
compliance with Myanmar law – Recording of prepayments and accruals
– Setting up, custody and maintenance of statutory books – Recording of assets and related depreciation
and registers – Recording of all commercial tax (CT) on taxable
– Filings with the Directorate of Investment and Company purchases/ supplies
Administration (DICA) and the Myanmar Investment – Extraction of monthly trial balances and general ledger
Commission (MIC) ■ Management reports
– Preparation of notices, minutes, and other documents – Compiling of profit and loss account and balance sheet
pertaining to directors’ and shareholders’ meetings – Generating aged financial analysis of debtors and
– Provision of registered office address creditors
■ Managing changes: – Business advisory services such as accounting reports
– Change of name – Budget preparation, comparison and analysis of key
– Change in constitutional documents components of financial performance
– Change in capital structure (transfer of shares, issuance – Statutory accounting
of shares) – Preparation of financial statements and notes to
– Change of shareholders, directors, representatives, the financial statements
auditors and company secretaries
– Change of registered office address Human resources and payroll administration
■ Cessation of a business ■ Processing and payment of employee expense claims
– Liquidation of companies ■ Computation of salaries, social security contributions
– De-Registration of overseas corporations (Branch / and personal income taxes
Representative Office) ■ Provision of payroll reports and financial journals
■ Payment of salaries net of personal income tax and
Tax advice and tax structuring social security contributions
■ International tax (inbound and outbound) ■ Filing and payment of personal income tax and social
■ Direct and indirect taxes security contributions
■ Tax structuring of M&A transactions ■ Ensuring compliance with tax and social security
■ Transfer pricing reporting requirements

Tax compliance Payment administration

■ Commercial tax and special goods tax ■ Administration of cash funds deposited with us or in
■ Corporate income tax and withholding tax client’s own bank accounts
■ Personal income tax ■ Account signatory services to enable settlement
■ Applications for relief under Double Tax Agreements of company payment obligations and observance of
■ Liaison with the Internal Revenue Department “four eyes principle”
■ Payment of stamp duty ■ Cash flow forecasting and processing of accounts
receivables
■ Issuance of payment vouchers and arrangement
of payments

13 | Luther Law Firm Limited | Luther Corporate Services Limited

Luther in Asia
Expertise Singapore

Our Myanmar office works closely together with the other Singapore is a leading international trade and financial hub. As
Luther offices in Asia and Europe. We take a holistic approach, such, it serves as Asian headquarters for many international
dealing with Asia-wide compliance issues, assisting with the companies operating within the Asia-Pacific region.
creation of international holding structures and ensuring tax-
efficient repatriation of profits. With a staff strength of more than 90, Luther is by far the largest
continental European law firm in Singapore. More than 25
We provide the complete range of legal and tax advice to lawyers from Singapore, Germany, France and other
clients doing business in and from Asia. To offer a seamless jurisdictions cover the full range of corporate and commercial
service, we have teams in Europe as well as in Asia, led by legal work as well as the structuring of investments within
partners with many years of experience on both continents. South and South East Asia.
That way, we can immediately answer questions concerning
investment decisions and provide our clients with an accurate Our team is supported by excellent local Singaporean lawyers,
assessment of the particularities of their projects, no matter notary publics, tax advisors, accountants, corporate
where they are located. secretaries and other professionals.

Our lawyers unite substantial practical knowledge in important Shanghai

legal areas and cover the entire spectrum of law in Asia and
beyond. We support foreign investors in the assessment of Shanghai is the main hub for doing business in China, and with
location and investment criteria, the structuring of investment a team of more than 20 international lawyers, Luther is the
projects, acquisitions and joint ventures. Finding and largest German-speaking law firm in the city. Our China team
implementing solutions for sensitive areas like technology consists of German and Chinese legal experts most of whom
transfer and know-how protection also form part of our work. have over a decade of experience in developing and entering
Alongside our clients we negotiate with future partners and the Chinese market.
local authorities and ensure the enforcement of their rights, in
and out of court as well as in arbitration proceedings. Luther Shanghai is fully authorised to offer legal services
including litigation and provides advice on all questions of
The services of our lawyers are complemented by our Chinese law. Our legal team is supported by Chinese tax
accountants, HR professionals and tax consultants offering all advisors, accountants, corporate secretaries and other
the services one would necessarily associate with a “one- professionals.
stop shop” concept, from outsourced administration to
accounting, payroll and tax compliance. Additionally, we Region
provide corporate secretarial services, especially in Asian
“common law” countries. Our two principal Asian offices in Singapore and Shanghai
are complemented by offices and teams in Yangon (Myanmar),
Collectively, our lawyers, tax consultants and professionals Bangkok (Thailand), Delhi-Gurugram (India), Kuala Lumpur
combine the competence and experience necessary to (Malaysia), Ho Chi Minh City (Vietnam) and Jakarta
comprehensively assist comprehensively on all business (Indonesia).
matters in Asia. Our tax experts advise on individual and
corporate tax compliance as well as on withholding tax issues, This network of Luther offices is further strengthened by the
on Double Taxation Agreements and on complex international long-established business relationships that we have
tax structures. Our accountants and professionals carry out the successfully developed both locally and with our regional
time-consuming administrative tasks of accounting and payroll partners in Australia, Hong Kong, Japan, New Zealand, the
functions a business must undertake, allowing our clients to Philippines, South Korea and Vietnam.
concentrate on growing their business.

14 | Luther Law Firm Limited | Luther Corporate Services Limited

Hits the mark. Luther.
Luther Rechtsanwaltsgesellschaft mbH is one of the leading corporate law firms in Germany. With some 420 lawyers and tax
advisors, we can advise you in all fields of German and international corporate law. In addition to having offices in every economic
centre throughout Germany, we are also present in ten locations abroad: in Brussels, London and Luxembourg in Europe, and in
Bangkok, Delhi-Gurugram, Ho Chi Minh City, Jakarta, Kuala Lumpur, Shanghai, Singapore and Yangon in Asia.

Our advisory services are tailored to our clients’ corporate goals. We take a creative, dedicated approach to achieving the best
possible economic outcome for each of our clients. The name “Luther” stands for expertise and commitment. With a passion for
our profession, we dedicate all our efforts to solving your issues, always providing the best possible solution for our clients. Not too
much and not too little – we always hit the mark.

We know how crucial it is to use resources efficiently and to plan ahead. We always have an eye on the economic impact of our
advice. This is true in the case of strategic consulting as well as in legal disputes. We have complex projects on our agenda every
day. At Luther, experienced and highly specialised advisors cooperate closely in order to offer our clients the best possible service.
Thanks to our fast and efficient communication, permanent availability and flexibility, we are there for you whenever you need us.

Luther has been named “Law Firm of the Year: Germany 2021” and also “European Law Firm of the Year 2021” by The Lawyer,
one of the most well-known legal magazines worldwide.

Luther Myanmar is ranked in the Asia Pacific Guides 2022 of Chambers and Legal 500.

Lawyers and Locations Long-Standing Connec- Offices in International

Tax Advisors tions to Commercial Law Financial Centres and
Firms Worldwide Investment Locations

420 20
About unyer
unyer, founded by Luther and Fidal in 2021, is a global organisation of leading international professional services firms. Besides
law firms, unyer is also open to other related professional services, especially from the legal tech sector. unyer is based in Zurich
as a Swiss Verein. unyer is globally connected but has strong local roots in their respective markets.

unyer has an exclusive approach and only accepts one member firm from each market. unyer members offer its clients full services
across all jurisdictions with a compelling industry focus. The organisation has an annual turnover of more than EUR 650 million
and includes over 2,500 lawyers and advisors in more than 10 countries in Europe and Asia. In September 2021, Pirola Pennuto
Zei & Associati joined the international organisation.

www.unyer.com

15 | Luther Law Firm Limited | Luther Corporate Services Limited

Our locations
Our and our local partners’ offices in important European and Asian markets

London
Brussels Bangkok Shanghai
Luxembourg

Ho Chi Minh City

10 Offices
in Germany
Berlin
Cologne
Dusseldorf
Delhi-Gurugram
Essen
Frankfurt a.M.
Yangon
Hamburg
Hanover Jakarta
Leipzig
Munich Kuala Lumpur
Singapore
Stuttgart

The shown locations are either Luther legal or corporate

services offices and/or offices of our local cooperation partners.

16 | Luther Law Firm Limited | Luther Corporate Services Limited

Contact

Bagaya St Bagaya St Bagaya St

Koe Htat Gyi Pagoda

Lower Kyeemyindaing Rd
Pann Hlaing St Asia World
Hospital

Thida St
U Lu Ni St

Description in detail

Our office in Myanmar Your contact

Luther Law Firm Limited // Alexander Bohusch

Luther Corporate Services Limited Rechtsanwalt/Attorney-at-law
Uniteam Marine Office Building, Level 8, Unit #1 (Germany)
84 Pan Hlaing Street, Sanchaung Accredited Tax Practitioner
Township 11111 Yangon, Myanmar (Income Tax) (Singapore)
Phone +95 1 7500 021, Fax +95 1 7502 852
[email protected]

regard [email protected]
Imprint
Luther Rechtsanwaltsgesellschaft mbH, Anna-Schneider-Steig 22,
50678 Cologne, Germany, Phone +49 221 9937 0, Fax +49 221 9937
110, [email protected]

Editor: Alexander Bohusch, Rechtsanwalt/Attorney-at-law (Germany),

Luther Law Firm Limited, Luther Corporate Services Limited,
Uniteam Marine Office Building, Level 8, Unit #1, 84 Pan Hlaing Street,
Sanchaung Township 11111 Yangon, Myanmar, Phone +95 1 500 021,
Fax +95 1 502 852, HP (MM): +95 9 425 0136 00,
HP (SG): +65 9 829 1829, [email protected]

Copyright: These texts are protected by copyright. You may make use of
the information contained herein with our written consent, if you do so
accurately and cite us as the source. Please contact the editors in this

17 | Luther Law Firm Limited | Luther Corporate Services Limited

Disclaimer
Although every effort has been made to offer current and correct
information, this publication has been prepared to provide information
on recent regulatory and legal developments in Myanmar only. It is not
exhaustive and thus does not cover all topics with which it deals. It will
not be updated and cannot substitute individual legal and/or tax advice.
This publication is distributed with the understanding that Luther, the
editors and authors cannot be held responsible for the results of any
actions taken on the basis of information contained herein or omitted,
nor for any errors or omissions in this regard.

18 | Luther Law Firm Limited | Luther Corporate Services Limited

 Bangkok, Berlin, Brussels, Cologne, Delhi-Gurugram, Dusseldorf, Essen,
Frankfurt a.M., Hamburg, Hanover, Kuala Lumpur, Jakarta, Leipzig, London,
Luxembourg, Munich, Shanghai, Singapore, Stuttgart, Yangon

You can find further information at:

www.luther-lawfirm.com
www.luther-services.com

Legal and Tax Advice | www.luther-lawfirm.com

Corporate Services | www.lutherservices.com