To All Depository Institutions and Others Concerned in the Second Federal Reserve District:
The Federal Reserve Board has issued a supervisory letter (SR 04-6) dated May 3, 2004 to advise banking organizations under its supervision of new obligations relating to Burma (Myanmar) imposed by the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN).
On April 12, 2004, FinCEN issued two final rules that impose special measures under Section 311 of the USA PATRIOT Act (31 U.S.C. 5318A) against Burma and two Burmese financial institutions, Myanmar Mayflower Bank and Asia Wealth Bank, including the banks' branches and offices operating in Burma or other jurisdictions. These rules are effective as of May 12, 2004. FinCEN's final rules can be found at their website.
The final rules issued on April 12, 2004 by FinCEN generally prohibit certain U.S. financial institutions, including banking organizations supervised by the Federal Reserve, from establishing, maintaining or administering correspondent or payable-through accounts for, or on behalf of, Myanmar Mayflower Bank and Asia Wealth Bank, or any other Burmese banking institution. These special measures reinforce the economic sanctions currently in place against Burma, which were initially imposed by Executive Order 13310. The Executive Order sanctions generally restrict all U.S. financial institutions from undertaking financial transactions with Burmese financial institutions, subject to certain exemptions.
The 311 special measures generally restrict U.S. financial institutions from entering into direct as well as indirect transactions with Burmese banking organizations. Due to heightened concerns with Myanmar Mayflower Bank and Asia Wealth Bank, the separate 311 special measures against these two banking organizations are more restrictive. Without exception, U.S. financial institutions are broadly prohibited from establishing, maintaining or administering correspondent accounts or payable-through accounts with Myanmar Mayflower Bank and Asia Wealth Bank.
Legal and Compliance Risk Department