There has been a lot of talk in the news recently about the rescission of economic sanctions targeting Burma due to political changes occurring in that country. Today we may have seen the first steps towards the rescission of those sanctions in a general license issued by the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC). The new general license authorizes the provision of financial services to Burma by United States persons for certain categories of activities. These activities include the provision of financial services by U.S. persons for the following categories:

1. Projects relating to basic human needs.The examples provided by OFAC of such basic needs seem to relate mostly to disasater relief and other forms of financial services for projects designed to relieve human suffering.

2. Democracy building. OFAC provides a rather ambiguous definition of what this could entail, stating that it includes rule of law, citizen participation, govemment accountability, conflict resolution, public policy advice, and civil society development projects.

3. Educational activities. Financial services for most education development projects in Burma seem to now be generally authorized.

4. Sporting activities. The activities do not only include financial services for sporting events, but also the promotion of physical health and well-being in Burma and the building of sporting facilities.

5. Non-commercial development projects. These generally authorized financial services seem to include anything to benefit the Burmese people. OFAC includes the examples of maintaining libraries and school, preventing infectious diseases, and promoting maternal/child health as being non-developmental projects for which U.S. persons are now

6. Religious activities. Such financial services include construction of houses of worship, missionary work, and religious education among others.

This general license supersedes and replaces OFAC General License 14-b for Burma which was issued in December 2008 and as can be seen from the language of the general license authorizes a wide range of projects and activities for which financial services from U.S. persons to Burma are now permitted.

The timing of OFAC’s action seems to be telling. With much of the West reconsidering sanctions against Burma this general license could mark the beginning of the dismantling of the Burma Sanctions program. On the other hand it could just be a temporary easing of sanctions to coincide with Burma’s current political developments and to encourage further reform in that country.

The author of this blog is Erich Ferrari, an attorney specializing in OFAC matters. If you have any questions please contact him at 202-280-6370 or ferrari@ferrari-legal.com.