House Votes To Squeeze Myanmar Junta

Unanimous House Vote Supports Economic Sanctions Against Corrupt Ruling Regime

(AP)  The House of Representatives voted Tuesday to punish Myanmar's brutal ruling regime "where it hurts - in the wallet," by freezing assets of political and military leaders there and banning the importation of rubies from that country into the U.S.

The unanimous vote sent the bill back to the Senate, which voted last year to also bar timber from Myanmar, also known as Burma.

House Foreign Affairs Committee Chairman Howard Berman said the legislation would put financial pressure on a corrupt regime that failed to adequately help its citizens recover from a cyclone and famously put down democracy demonstrations by Buddhist monks last year.

"The legislation before the House today hits the regime where it hurts - in the wallet," Berman, a Democrat, told the House. "By blocking the import of Burmese gems into the United States and expanding financial sanctions, the legislation will take hundreds of millions of dollars out of the pockets of the regime each year."

He said the 11,000-store Jewelers of America supports a ban on Burmese gem imports. Retailers like Tiffany's and Bulgari have also voluntarily made the ban their policy, Berman said.

The bill also gives Chevron incentives to divest its natural gas program in Myanmar.

It aims to bring more pressure against the junta to restore democratic civilian government in Myanmar. U.S. officials say Myanmar has been evading earlier gem-targeting sanctions by laundering the stones in other countries before they are shipped to the United States.

President Bush is eager to sign the bill, which will extend and harden sanctions Congress first passed in 2003. President Bush's wife, Laura, has emerged in recent months as a strong proponent of democratization in the Southeast Asian country.

Myanmar has been under military rule since 1962. The current junta took power in 1988 after crushing pro-democracy demonstrations at a cost of an estimated 3,000 lives. Its soldiers similarly cracked down on Buddhist monks during the so-called Saffron Revolution in September. Human rights observers put the death toll among demonstrators in the hundreds.

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CHAPTER VIII TERMINATION OF SANCTIONS
20. The sanctions imposed under this Act shall apply until the Committee determines and certifies to the State Peace and Development Council and/or the Government of Union of Myanmar that all sanctions and embargoes against Union of Myanmar and its entities have been removed.
CHAPTER IX MISCELLANEOUS
21. Rule of Construction: Nothing in this section may be construed to prohibit any contract or other financial transaction with any entities engaged in the humanitarian and developmental efforts in Union of Myanmar.
22. REGULATORY EXCEPTIONS
For the following purposes, the Minister of Foreign Affairs may, by regulation, authorize exceptions to the prohibition and restrictions described in subsection (a), and the Minister of Home Affairs may, by regulation, authorize exceptions to the executions of penalties under this Act -
(a) to permit the other countries and Myanmar to operate their diplomatic missions, and to permit Union of Myanmar to conduct other official Government business at home and abroad.

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Chapter VII (PROVISION OF INFORMATION)
19. The responsible persons of the banks, financial institutions and relevant departments shall, notwithstanding anything contained in existing laws in respect of bank secrecy, check and report to the Committee within 120 days of the enactment of this Act and without delay in the future
(a) whether they maintain any accounts or otherwise hold any funds for the individuals and entities listed in Chapter [ ] and,

(b) if so they should report to the Committee details of all funds or economic resources that they have frozen in accordance with this Act.

(c) They must also provide the Committee with all relevant information necessary for ensuring compliance with this Act.

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19. The prohibition against making funds or economic resources available does not prevent the crediting of frozen accounts by financial or credit institutions that receive funds transferred by third parties to the frozen account of the listed person provided that any additions to such accounts are also frozen. Financial institutions are required to inform the Committee of any such transactions without delay.
(d) Interest, other payments and credits

20. The Committee is able to authorize the release of certain frozen funds or economic resources or the making available of certain frozen funds or economic resources, if they have determined that the funds or economic resources concerned are:

a) necessary to cover the basic expenses of those listed in subsection (a) (1) and their dependent family members, including payments for foodstuffs, rent or mortgage, medicines and medical treatment, taxes, insurance premiums, and public utility charges;

b) intended exclusively for payment of reasonable professional fees and reimbursement of incurred expenses associated with the provision of legal services;

c) intended exclusively for payment of fees or service charges for routine holding or maintenance of frozen funds or economic resources;

d) necessary for extraordinary expenses.

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FINANCIAL TRANSACTIONS
16. Except with respect to transactions authorized explicitly under the existing laws and regulations of Union of Myanmar, no Myanmar person may engage in a financial transaction with a person described in subsection (a) (1).
17. IN GENERAL the prohibitions and restrictions described in subsections above shall not apply to medicine, medical equipment or supplies, food or feed, or any other form of humanitarian and developmental assistance provided to Myanmar.

FREEZING OF FUNDS AND ECONOMIC RESOURCES
18. All funds and economic resources belonging to, owned, held or controlled by persons listed in Chapter V shall be frozen;
(a) No payment or transfer may be made from a frozen account, including to another frozen account, without prior authorization. This includes the deduction of fees or service charges for routine holding or maintenance of frozen accounts. Loans and other forms of credit should not be made available to those listed in Chapter V.

(b) Under the Act, interest or other earnings on frozen accounts or payments due under contracts, agreements or obligations that were concluded or arose prior to the date on which those accounts became subject to financial sanctions may be added to frozen accounts provided that any such interest, other earnings or payments continue to be frozen.

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CHAPTER VI (OFFENCES AND PENALTIES)
10. Whoever commits any of the acts prohibited in the Chapter IV of this Act shall, on determination, be punished with any or any combination of the following penalties -
VISA BAN
11. IN GENERAL any foreign PERSONS listed in Chapter [ ] shall be ineligible for a visa to travel to Union of Myanmar.
(a) WAIVER The Government of Union of Myanmar may waive the visa ban described in paragraph (1) only if the Government of Union of Myanmar determines and certifies in writing to the State Peace and Development Council that travel by the person seeking such a waiver is in the national interests of Union of Myanmar.
FINANCIAL SANCTIONS
12. FREEZING PROPERTY No property or interest in property belonging to a person described in Chapter V may be transferred, paid, exported, withdrawn, or otherwise dealt with if found in violation of the activities prohibited under this Act.
13. Any property located in Union of Myanmar or within the possession or control of a Myanmar person, including the overseas branch of a Myanmar person shall be frozen; or
14. the property comes into the possession or control of a Myanmar person after the date of the enactment of this Act shall be frozen.
15. No granting of any financial loan or credit to persons listed in Chapter V or enterprises that are owned or controlled by persons listed in Chapter V.

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Chapter V (LIST OF SANCTIONED PERSONS)
9. Not later than 120 days after the date of the enactment of this Act, the Committee shall transmit to the State Peace and Development Council, the Government of Union of Myanmar and appropriate ministries and Myanmar missions abroad a list of persons found in violation of activities and speeches prohibited in Chapter IV of this Act -
(a) Any government leaders and law makers who signed the bills into laws that imposed sanctions and trade embargos against Union of Myanmar and its entities;
i. Former and present heads of states and heads of governments who signed the bills into laws that imposed sanctions and trade embargos against Union of Myanmar and its entities;
ii. Former and present lawmakers who sponsored and co-sponsored the bills and laws that imposed sanctions and trade embargos against Union of Myanmar and its entities;
(b) Persons involved in and calling for the sanctions and trade embargos against Union of Myanmar and its entities;
(c) Any other persons who provide substantial economic and political support for imposition of sanctions and trade embargos against Union of Myanmar and its entities;
(d) Any other persons the Committee determines effectively controls property in Union of Myanmar or has benefited from activities leading to the imposition of sanctions and trade embargos against Union of Myanmar or its entities;
(e) The immediate family members of any person described in subparagraphs (a) through (d)

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CHAPTER IV: PROHIBITED ACTIVITIES
8. The following activities and speeches are prohibited under this Act:-
(a) any activities or speeches calling for or leading to the imposition of foreign sanctions and trade embargos against Union of Myanmar or its entities.
(b) Provision of any financial, material, logistical, or technical support for enactment of foreign sanctions and trade embargos against Union of Myanmar or its entities.
(c) Any transaction by a Myanmar person or within the Union of Myanmar that evades or avoids, has the purpose of evading or avoiding, or attempts to violate any of the prohibitions and penalties set forth in this Act.
(d) Any conspiracy formed to violate any of the prohibitions set forth in this Act.
(e) the participation, knowingly and intentionally, in activities the object or effect of which is, directly or indirectly, to promote the activities referred above.

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(g) issuing the prohibitory order to the relevant departments, organizations and persons not to convert, transfer, conceal, obliterate and disguise funds, property and economic resources of the sanctioned persons during the investigation period under this Law, and directing the attachment and sealing thereof;
(h) issuing an order to the relevant departments, organizations and persons to freeze funds, property and economic resources of the sanctioned persons, and directing the attachment and sealing thereof;
(h) revoking the order issued under sub-sections f, g and h
(i) giving necessary protection and deserving reward to an informer in respect of funds, property and economic resources of the sanctioned persons;
(j) forming the staff office comprising experts to assist the Central Committee in performing its functions and duties.
(k) by regulation, further defining the terms used in paragraph (1) for purposes of this Act, as the Committee considers appropriate.
(l) further instructing the Minister of Home Affairs, the Minister of Foreign Affairs and the Minister of Finance and Revenue to devote sufficient resources to the identification of information concerning potential persons to be sanctioned to carry out the purposes described in this Act.

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7. The powers of the Committee are as follows:-
(a) freezing the funds, property and economic resources of the sanctioned persons found in violations of the activities prohibited under this Act and revising thereof from time to time;
(b) prescribing, with the approval of the Government the amount of value of funds, property and economic resources to be frozen;
(c) forming the Investigation Body and Preliminary Scrutiny Body and prescribing their functions and duties, and making arrangement to enable aiding of necessary and sufficient resources including money and technical know-how to such bodies;
(d) assigning duties to the Investigation Body to carry out investigation, enter a building and conduct inspection, search, and seize funds, property and economic resources of the sanctioned PERSONS, in accordance with the stipulations of this Act;
(e) passing an order permitting the return of the frozen funds, property and economic resource and revoking the permission;
(f) issuing and order to the responsible persons of the banks and financial institutions and private property to allow search and freezing of funds, property and economic resources, at the relevant banks and financial institutions, examining and making copy of the financial records and if necessary to allow search and seizure thereof as exhibit by the Investigation Body;

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7. The powers of the Committee are as follows:-
(a) freezing the funds, property and economic resources of the sanctioned persons found in violations of the activities prohibited under this Act and revising thereof from time to time;
(b) prescribing, with the approval of the Government the amount of value of funds, property and economic resources to be frozen;
(c) forming the Investigation Body and Preliminary Scrutiny Body and prescribing their functions and duties, and making arrangement to enable aiding of necessary and sufficient resources including money and technical know-how to such bodies;
(d) assigning duties to the Investigation Body to carry out investigation, enter a building and conduct inspection, search, and seize funds, property and economic resources of the sanctioned PERSONS, in accordance with the stipulations of this Act;
(e) passing an order permitting the return of the frozen funds, property and economic resource and revoking the permission;
(f) issuing and order to the responsible persons of the banks and financial institutions and private property to allow search and freezing of funds, property and economic resources, at the relevant banks and financial institutions, examining and making copy of the financial records and if necessary to allow search and seizure thereof as exhibit by the Investigation Body;