[Federal Register Volume 81, Number 96 (Wednesday, May 18, 2016)]
[Rules and Regulations]
[Pages 31169-31171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-11677]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 537


Burmese Sanctions Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (OFAC) is amending the Burmese Sanctions Regulations to add a 
general license authorizing certain transactions related to U.S. 
persons residing in Burma. OFAC is also incorporating a general license 
authorizing certain transactions incident to exports to and from Burma 
that has, until now, appeared only on OFAC's Web site on the Burma 
sanctions page, and expanding this authorization to allow certain 
transactions incident to the movement of goods within Burma that 
otherwise would be prohibited. Finally, OFAC is expanding and updating 
another existing authorization allowing most transactions involving 
certain blocked financial institutions.

DATES: Effective: May 18, 2016.

FOR FURTHER INFORMATION CONTACT: The Department of the Treasury's 
Office of Foreign Assets Control: Assistant Director for Licensing, 
tel.: 202-622-2480, Assistant Director for Regulatory Affairs, tel.: 
202-622-4855, Assistant Director for Sanctions Compliance & Evaluation, 
tel.: 202-622-2490; or the Department of the Treasury's Office of the 
Chief Counsel (Foreign Assets Control), Office of the General Counsel, 
tel.: 202-622-2410.

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

    This document and additional information concerning OFAC are 
available from OFAC's Web site (www.treasury.gov/ofac). Certain general 
information pertaining to OFAC's sanctions programs also is available 
via facsimile through a 24-hour fax-on-demand service, tel.: 202-622-
0077.

Background

    On June 30, 2014, the Department of the Treasury's Office of 
Foreign Assets Control (OFAC) amended and reissued in their entirety 
the Burmese Sanctions Regulations, 31 CFR part 537 (the 
``Regulations''), to implement Executive Order 13448 of October 18, 
2007, ``Blocking Property and Prohibiting Certain Transactions Related 
to Burma,'' Executive Order 13464 of April 30, 2008, ``Blocking 
Property and Prohibiting Certain Transactions Related to Burma,'' 
Executive Order 13619 of July 11, 2012, ``Blocking Property of Persons 
Threatening the Peace, Security, or Stability of Burma,'' and Executive 
Order 13651 of August 6, 2013, ``Prohibiting Certain Imports of Burmese 
Jadeite and Rubies'' (79 FR 37106).

[[Page 31170]]

    Following Burma's peaceful and competitive elections in 2015, the 
U.S. Government is taking additional steps to support Burma's political 
reforms and broad-based economic growth.
    Transactions related to U.S. persons residing in Burma. OFAC is 
adding a general license in section 537.525 to authorize certain 
transactions related to maintenance of U.S. persons residing in Burma, 
including payment of living expenses and acquisition of goods or 
services for personal use. This general license complements the 
existing exemption in section 537.210(c) of the Regulations for travel 
to or from Burma, including maintenance within Burma, such as payment 
of living expenses and acquisition of goods or services for personal 
use.
    Trade-related transactions. In December 2015, OFAC issued and made 
available on its Web site General License No. 20, a six-month general 
license authorizing certain transactions ordinarily incident to 
exportations to or from Burma of goods, technology, or non-financial 
services that are otherwise prohibited by the Regulations and 
unblocking certain previously blocked transactions. Today, OFAC is 
amending the Regulations by adding section 537.532 to incorporate that 
general license, to remove its six-month time limitation, and to expand 
this authorization to allow additional transactions incident to the 
movement of goods within Burma.
    Banking services. In February 2013, OFAC issued and made available 
on its Web site General License No. 19, and subsequently added this 
authorization to the Regulations at section 537.531, authorizing most 
transactions, including opening and maintaining accounts and conducting 
other financial services, involving four of Burma's major financial 
institutions that were then included on OFAC's Specially Designated 
Nationals and Blocked Persons List (SDN List): Asia Green Development 
Bank, Ayeyarwady Bank, Myanma Economic Bank (MEB), and Myanma 
Investment and Commercial Bank (MICB). In an action coordinated with 
these regulatory amendments, OFAC has delisted two of these financial 
institutions, MEB and MICB. As a result of that action, transactions 
involving these two institutions are no longer prohibited and therefore 
do not require an OFAC license. Accordingly, OFAC is amending section 
537.531 to remove their names. At the same time, to further support 
Burma's broad-based economic growth, OFAC is adding two other Burmese 
financial institutions, Innwa Bank and Myawaddy Bank, to the general 
license at section 537.531, thereby authorizing most transactions 
involving those institutions.

Public Participation

    Because the Regulations involve a foreign affairs function, the 
provisions of Executive Order 12866 and the Administrative Procedure 
Act (5 U.S.C. 553) requiring notice of proposed rulemaking, opportunity 
for public participation, and delay in effective date are inapplicable. 
Because no notice of proposed rulemaking is required for this rule, the 
Regulatory Flexibility Act (5 U.S.C. 601-612) does not apply.

Paperwork Reduction Act

    The collections of information related to the Regulations are 
contained in 31 CFR part 501 (the ``Reporting, Procedures and Penalties 
Regulations''). Pursuant to the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507), those collections of information have been approved by 
the Office of Management and Budget under control number 1505-0164. An 
agency may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless the collection of 
information displays a valid control number.

List of Subjects in 31 CFR Part 537

    Administrative practice and procedure, Banks, Banking, Blocking of 
assets, Credit, Burma, Exportation, Exports, Foreign trade, 
Investments, Loans, New investment, Securities, Services, Specially 
Designated Nationals.

    For the reasons set forth in the preamble, the Department of the 
Treasury's Office of Foreign Assets Control amends 31 CFR part 537 as 
set forth below:

PART 537--BURMESE SANCTIONS REGULATIONS

0
1. The authority citation for part 537 is revised to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Sec. 570, Pub. L. 104-208, 110 Stat. 3009; Pub. L. 110-96, 121 Stat. 
1011 (50 U.S.C. 1701 note); Pub. L. 110-286, 122 Stat. 2632 (50 
U.S.C. 1701 note); E.O. 13047, 62 FR 28301, 3 CFR, 1997 Comp., p. 
202; E.O. 13310, 68 FR 44853, 3 CFR, 2003 Comp., p. 241; E.O. 13448, 
72 FR 60223, 3 CFR, 2007 Comp., p. 304; E.O. 13464, 73 FR 24491, 3 
CFR, 2008 Comp., p. 189; E.O. 13619, 77 FR 41243, 3 CFR, 2012 Comp., 
p. 279; E.O. 13651, 78 FR 48793, 3 CFR, 2014 Comp., p. 324; 
Determination No. 2009-11, 74 FR 3957, 3 CFR, 2009 Comp., p. 330.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
2. Add Sec.  537.525 to read as follows:


Sec.  537.525  Certain transactions related to U.S. persons residing in 
Burma authorized.

    (a) U.S. persons are authorized to engage in transactions in Burma 
ordinarily incident to the routine and necessary maintenance within 
Burma, including payment of living expenses and acquisition of goods or 
services for personal use, of U.S. person individuals who reside in 
Burma.
    (b) Nothing in this section authorizes transactions related to 
employment of a U.S. person by a person whose property and interests in 
property are blocked pursuant to Sec.  537.201(a).

    Note to Sec.  537.525: See Sec.  537.210(c) for an exemption for 
transactions ordinarily incident to travel to or from Burma, 
including maintenance within Burma, such as payment of living 
expenses and acquisition of goods or services for personal use.


0
3. Amend Sec.  537.531 by revising the section heading, revising 
paragraphs (a), (b), and (d), and revising the Note to Sec.  537.531 to 
read as follows:


Sec.  537.531  Certain transactions involving Asia Green Development 
Bank, Ayeyarwady Bank, Innwa Bank, and Myawaddy Bank authorized.

    (a) Except as provided in paragraphs (b) through (f) of this 
section, all transactions involving Asia Green Development Bank, 
Ayeyarwady Bank, Innwa Bank, and Myawaddy Bank are authorized.
    (b) This section does not authorize transactions involving any 
person whose property and interests in property are blocked pursuant to 
Sec.  537.201(a) other than Asia Green Development Bank, Ayeyarwady 
Bank, Innwa Bank, and Myawaddy Bank.
* * * * *
    (d) This section does not authorize any new investment, as defined 
in Sec.  537.311, including in or with Asia Green Development Bank, 
Ayeyarwady Bank, Innwa Bank, or Myawaddy Bank.
* * * * *

    Note to Sec.  537.531: As a result of the authorization 
contained in this section, the special measures against Burma 
imposed under Section 311 of the Uniting and Strengthening America 
by Providing Appropriate Tools Required to Intercept and Obstruct 
Terrorism (USA PATRIOT) Act of 2001 (Pub. L. 107-56) (USA PATRIOT 
Act) do not apply to the operation of correspondent accounts for 
Asia Green Development Bank, Ayeyarwady Bank, Innwa Bank, and 
Myawaddy Bank, or to transactions conducted through such accounts, 
provided the transactions are

[[Page 31171]]

authorized pursuant to this part, and therefore fall within the 
exception set forth in 31 CFR 1010.651(b)(3). This section does not 
affect any obligation of U.S. financial institutions processing such 
transactions to conduct enhanced due diligence under Section 312 of 
the USA PATRIOT Act. See 31 CFR 1010.610(c).


0
4. Add Sec.  537.532 to subpart E to read as follows:


Sec.  537.532  Certain transactions incident to exportations to or from 
Burma authorized; certain transactions incident to the movement of 
goods within Burma authorized.

    (a) Certain transactions incident to exportations to or from Burma 
authorized. Except as provided in paragraph (c), all transactions 
otherwise prohibited by Sec. Sec.  537.201 and 537.202 that are 
ordinarily incident to an exportation to or from Burma of goods, 
technology, or non-financial services, as defined in paragraph (f) of 
this section, are authorized, provided the exportation is not to, from, 
or on behalf of a person whose property and interests in property are 
blocked pursuant to Sec.  537.201(a).
    (b) Unblocking of certain property previously blocked as part of a 
transaction incident to an exportation to or from Burma authorized. 
U.S. financial institutions, as defined in Sec.  537.320, are 
authorized to engage in all transactions necessary to unblock and 
return property blocked as part of a transaction on or after April 1, 
2015 that would have qualified as authorized had it been engaged in 
under paragraph (a) of this section. U.S. financial institutions 
unblocking property pursuant to this section must submit a report to 
the Department of the Treasury, Office of Foreign Assets Control, Attn: 
Sanctions Compliance & Evaluation Division, 1500 Pennsylvania Avenue 
NW., Annex, Washington, DC 20220 within 10 business days from the date 
such property is unblocked. Such reports shall include the following:
    (1) A copy of the original blocking report filed with OFAC pursuant 
to Sec.  501.603(b)(1) of this chapter;
    (2) The date the property was unblocked;
    (3) If applicable, the amount unblocked;
    (4) The name of the party to whom the blocked property was 
returned; and
    (5) A reference to this general license as the legal authority 
under which the property was unblocked and the blocked property was 
returned.
    (c) Paragraphs (a) and (b) of this section do not authorize:
    (1) The unblocking of any property or interests in property that 
were blocked pursuant to Sec.  537.201(a) prior to April 1, 2015.
    (2) A U.S. financial institution to advise or confirm any financing 
by a person whose property and interests in property are blocked 
pursuant to Sec.  537.201(a).
    (d) Certain transactions incident to the movement of goods within 
Burma authorized. Except as provided in paragraph (e) of this section, 
all transactions otherwise prohibited by Sec. Sec.  537.201 and 537.202 
that are ordinarily incident to the movement of goods within Burma are 
authorized, provided the goods are not being sent to, from, or on 
behalf of a person whose property and interests in property are blocked 
pursuant to Sec.  537.201(a).
    (e) Paragraph (d) of this section does not authorize:
    (1) The unblocking of any property or interests in property that 
were blocked pursuant to Sec.  537.201(a).
    (2) A U.S. financial institution to advise or confirm any financing 
by a person whose property and interests in property are blocked 
pursuant to Sec.  537.201(a).
    (f) For the purposes of this section, the term non-financial 
services means all services other than those listed in Sec.  537.305.

    Note to Sec.  537.532: See Sec.  537.529 for a general license 
authorizing the exportation or reexportation of financial services 
to Burma.


    Dated: May 13, 2016.
John E. Smith,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 2016-11677 Filed 5-17-16; 8:45 am]
BILLING CODE 4810-AL-P