Last week the US blacklisted Myanmar Timber Enterprise (MTE) following the country’s military coup. Now with a new set of sanctions in place a UN human rights expert welcomed the announcement by the United States, the United Kingdom and Canada, highlighting in particular the US designation of the junta itself, or the State Administrative Council (SAC) for sanctions. Source: Timberbiz
“It is imperative that the international community ramp up the size and scope of sanctions as the junta ramps up its repression of the people of Myanmar,” said Tom Andrews, the UN Special Rapporteur on the situation of human rights in Myanmar.
“This week the United States has taken one of the most significant steps to date against the Myanmar junta, first by sanctioning not only individuals but the State Administrative Council itself; and second, by opening the door to targeting those who continue to do business with the junta and therefore aid and abet their relentless attacks against the people of Myanmar.”
The Environmental Investigation Agency, an international non-profit that documents timber industry abuses in Myanmar and elsewhere, stated that the military junta profits from the export of teak through MTE.
That teak was exported to the United States and Europe and used for luxury furniture and for the decks of high-end yachts, the group said.
“The designation of the SAC strikes a new blow to the junta’s finances. It is a significant step in the right direction.”
As a result of the designation of the SAC under US Executive Order 14014, all United States nationals are prohibited from providing funds, goods, or services that benefit the State Administrative Council.
Additionally, transactions with, involving, or for the benefit of the State Administrative Council that are undertaken in US dollars are prohibited to the extent such transactions involve the US financial sector.
This means that not only US banks, but also non-US banks and other entities that undertake transactions with a US nexus could face criminal and civil penalties in the United States if they wilfully facilitate US dollar transactions for the benefit of the SAC.
“I am hopeful that this action will be a wake-up call. Not only is doing business with the junta morally reprehensible, it could now mean being cut off from the U.S. financial system and/or facing criminal or civil penalties in the United States. If doing the right and just thing is not a factor in one’s decision making, then perhaps protecting one’s self interest will be,” Mr Andrews said.
He also welcomed the new sanctions imposed by the United Kingdom and Canada, including sanctions targeting the junta’s profiting from the timber and gems trade.
Mr Andrews urged countries that have yet to impose sanctions on Myanmar to take action.
