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Investment Ban
 

Note: The U.S. Department of the Treasury has the final decision on the legality of all proposed investments or service contracts.

As of May 20, 1997, it is not legal for a U.S. person to invest in Burma or to "facilitate" investment in Burma by a foreign entity if that investment would be illegal for a U.S. person.

Investment Defined

"Investment" is defined as: "(1) The entry into a contract that includes the economic development of resources located in Burma; (2) The entry into a contract providing for the general supervision and guarantee of another person's performance of a contract that includes the economic development of resources located in Burma; (3) The purchase of a share of ownership, including an equity interest, in the economic development of resources located in Burma; and, (4) The entry into a contract providing for the participation in royalties, earnings, or profits in the economic development of resources located in Burma, without regard to the form of the participation."

Contracts for "Economic development of resources" are expressly allowed if they are for "not-for-profit educational, health or other humanitarian programs or activities."

Exporting to Burma

U.S. persons may continue to legally export goods, services, or technology to Burma (including entering into a contract to provide services) with two important exceptions:

  1. It is not legal to enter into a services contract that provides general supervision and guarantee of another person's economic development of resources located in Burma
  2. It is not legal for a U.S. person to provide goods and services if the U.S. person is compensated, in whole or in part, in shares of ownership, including an equity interest, in the economic development of resources located in Burma, or participation in royalties, earnings, or profits in the economic development of resources located in Burma.

* The implementing regulations for the 1997 investment ban are quite complex. We urge anyone interested to consult the regulations, an attorney, or OFAC directly.