US Lifts Restrictions on Myanmar Banks
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The United States has taken further steps to ease restrictions on four major Myanmar banks allowing them access to the U.S. financial system. All four banks have faced U.S. sanctions and at least two of the institutions are controlled by people who have been on U.S. blacklists for having close ties to the former military regime.
The United States has taken further steps to ease restrictions on four major Myanmar banks allowing them access to the U.S. financial system. All four banks have faced U.S. sanctions and at least two of the institutions are controlled by people who have been on U.S. blacklists for having close ties to the former military regime.
The U.S. Treasury Department announced late last week that its Office of Foreign Assets Control, which oversees sanctions against a range of countries, had issued general licenses to the Myanma Economic Bank, Myanma Investment and Commercial Bank, Asia Green Development Bank and Ayeyarwady Bank.
The move frees U.S. citizens and companies to conduct business with four of the country’s largest banks and “will help to facilitate Burma’s continued social and economic development, serve as a model for responsible investment, and help to provide a better future for the Burmese people,” said David Cohen, the Treasury undersecretary for terrorism and financial intelligence.
[quote] However, all four banks remain on the U.S. government’s so-called “specially designated nationals” list, which means U.S. companies are still prohibited from investing or entering joint ventures with them, giving Washington leverage should Myanmar start to backslide on its political reforms. [/quote]
Nevertheless, the move is important because it clears up confusion among U.S. companies over the legality of banking and business dealings with Myanmar, according to Pillsbury Winthrop Shaw Pittman, a Washington DC-based law firm that specialises in U.S. sanctions regimes.
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The Treasury announcement comes as Myanmar prepares to allow foreign banks to enter majority-owned joint ventures with local banks, according to key officials involved in drafting new banking laws.
As part of a raft of reforms, Myanmar is seeking an overhaul of its battered and mistrusted banking system – a move that analysts say could pave the way for foreign lenders to open branches in the country. Already, some 20 foreign banks have opened representative offices in Yangon, including UK’s Standard Chartered Bank and Australia’s ANZ.
The United States, the European Union and other countries have gradually loosened restrictions on Myanmar since the country’s ruling military ceded power in 2011, ending decades of dictatorship.
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