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US warns firms over doing business in Myanmar

WASHINGTON: The US authorities warned corporations on Wednesday (Jan 26) to be extraordinarily cautious of doing business in Myanmar, citing the dangers of being linked to a army authorities concerned in lawlessness and human rights abuse.

Those concerned with companies managed by the army regime “run the risk of engaging in conduct that may expose them to significant reputational, financial, and legal risks,” together with breaking sanctions and money-laundering legal guidelines, in accordance with a press release from six cabinet-level departments.

Investors and merchants have been warned particularly to keep away from state-owned enterprises, the gems and treasured metals sector, actual property and development initiatives, and the arms business.

“These entities and sectors have been identified as primary industries providing economic resources for Burma’s military regime,” the assertion stated, utilizing the previous well-liked identify for the nation.

The assertion famous that the European Union and different nations have additionally positioned restrictions on doing business with Myanmar for the reason that army seized energy in a coup one 12 months in the past and has since performed a marketing campaign of extreme and lethal repression in opposition to a well-liked opposition motion.

“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 assertion stated.

It additionally famous that Myanmar has not adequately applied commonplace measures to forestall terrorism financing and cash laundering, exposing traders and merchants to dangers in these areas.

The assertion, signed by the departments of State, Treasury, Commerce, Labor and Homeland Security and the US Trade Representative, confused that it’s only an advisory and never a authorized order.

But it comes as numerous key overseas corporations which have invested in the nation have withdrawn because the army authorities continues to tighten management.

Last Friday, vitality giants TotalEnergies and Chevron introduced they have been exiting Myanmar, following different massive firms which have pulled out or frozen funding plans, together with 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 stated final week.

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