On January 31, 2024, the US Department of the Treasury’s Office of Foreign Assets Control designated four individuals and two entities to mark the third anniversary of the military coup in Burma. OFAC reported that it designated two Burmese entities – Shewe Byan Phy Group of Companies (“SBPG”) and Myanma Five Star Line Company Limited – that work with or work on behalf of Mayanma Economic Holdings Public Company Limited (“MEHL”), a company that was previously designated by OFAC in 2021. The sanctioned individuals include Thein Win Zaw, the chairman, founder, and owner of SBPG; his wife Tin Latt Min and their two adult children, Theint Win Htet and Win Paing Kyaw. OFAC sanctioned the family for allegedly owning or controlling at least 20 companies in various sectors of the Burmese economy that are closely related to Burma’s military regime.
The designations were imposed pursuant to Executive Order 14014, which targets the Myanmar military, its supporters, and leaders and officials associated with the regime. As a result of these designations, all property and interests in property of these designees within the United States or within the possession or control of a US person are blocked, and US persons are generally prohibited from engaging in transactions involving the designated persons. Entities owned 50 percent or more by one or more blocked persons are also blocked.
On the same day, OFAC issued General License 6 under the Burma Sanctions Regulations (“BuSR”), 31 CFR part 525. General License 6 authorizes wind down transactions involving SBPG or any entity in which SBPG owns a 50 percent or greater interest. These transactions are authorized until March 1, 2024 provided that any payment made to a blocked person be deposited into a blocked account in accordance with the BuSR.