The U.S. government warned corporations on Wednesday to be especially careful when doing business in Myanmar, citing the risks of ties to a military government embroiled in lawlessness and human rights abuses.
According to a press release by six government officials, those related to corporations controlled by the military regime “face the danger of engaging in conduct which will expose them to significant reputational, financial and legal risks,” including violating sanctions and money laundering laws. . departments.
Investors and traders were specifically warned to avoid state-owned enterprises, the gems and precious metals sector, real estate and construction projects and the arms business.
“These entities and sectors have been identified as major industries providing economic resources to the Myanmar military regime,” the statement said, using the country’s former popular name.
The statement noted that the European Union and other countries have also imposed restrictions on doing business with Myanmar because the military seized power in a coup a yr ago and have since waged a campaign of harsh and deadly repression against the favored opposition movement.
“The military has baselessly arrested leaders of the democratically elected government, cut off media and travel, and committed serious human rights violations and other abuses against individuals in Myanmar, including the brutal suppression of peaceful protests,” the statement said.
She also noted that Myanmar had not adequately implemented standard measures to forestall terrorist financing and money laundering, exposing investors and traders to risk in these areas.
The UN Security Council will meet on Friday to debate the crisis in Burma
The UN Security Council will meet on Friday to debate the crisis in Burma
The statement, signed by the Departments of State, Treasury, Commerce, Labor and Homeland Security, and the U.S. Trade Representative, emphasized that this is simply an advisory order, not a legal order.
However, this comes at a time when many key foreign corporations that had invested within the country have withdrawn because the military government continues to tighten control.
Last Friday, energy giants TotalEnergys and Chevron announced they were exiting Myanmar, following other major corporations which have withdrawn or frozen investment plans, including Norway’s Telenor, British American Tobacco, France’s Voltalia and Toyota.
“The human rights situation and, more generally, the rule of law, which continues to deteriorate in Myanmar… has led us to reassess the situation,” TotalEnergys said last week.
