Desk Report
Publish: 26 Jan 2022, 11:59 pm
The US government warned companies
Wednesday to be extremely wary of doing business in Myanmar, citing the risks
of being linked to a military government involved in lawlessness and human
rights abuse.
Those involved with businesses controlled
by the military regime "run the risk of engaging in conduct that may
expose them to significant reputational, financial, and legal risks,"
including breaking sanctions and money-laundering laws, according to a
statement from six cabinet-level departments.
Investors and traders were warned
specifically 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 primary industries providing economic resources for Burma's
military regime," the statement said, using the former popular name for
the country.
The statement noted that the
European Union and other countries have also placed restrictions on doing business
with Myanmar since the military seized power in a coup one year ago and has
since conducted a campaign of severe and deadly repression against a popular
opposition movement.
"The military has unjustly
arrested leaders of the democratically elected government, cut off utilities
and travel, and committed serious human rights abuses and other abuses against
individuals in Burma, including violently suppressing peaceful protests,"
the statement said.
It also noted that Myanmar has
not adequately implemented standard measures to prevent terrorism financing and
money laundering, exposing investors and traders to risks in those areas.
The statement, signed by the departments
of State, Treasury, Commerce, Labor and Homeland Security and the US Trade
Representative, stressed that it is only an advisory and not a legal order.
But it comes as a number of key
foreign companies that have invested in the country have withdrawn as the military
government continues to tighten control.
Last Friday, energy giants
TotalEnergies and Chevron announced they were exiting Myanmar, following other
large firms that have pulled out or frozen investment plans, including Norway's
Telenor, British American Tobacco, Voltalia of France and Toyota.
"The situation, in terms of
human rights and more generally the rule of law, which have kept worsening in
Myanmar... has led us to reassess the situation," TotalEnergies said last
week.
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Topic : The US Myanmar Investment Firms
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