[Code of Federal Regulations]

[Title 31, Volume 3]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 31CFR537.409]



[Page 178]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

 CHAPTER V--OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY

 

PART 537_BURMESE SANCTIONS REGULATIONS--Table of Contents

 

                        Subpart D_Interpretations

 

Sec. 537.409  Approval or other facilitation of a foreign person's 

investment.



    (a) The prohibition contained in Sec. 537.202 against approval or 

other facilitation of a foreign person's investment in Burma bars any 

action by a U.S. person that assists or supports a foreign person's 

activity that would constitute prohibited new investment under Sec. 

537.201 if engaged in by a U.S. person. This facilitation prohibition is 

subject to the exemption for trade in goods, services and technology set 

forth in Sec. 537.204.

    (b) Examples: (1) A U.S. corporation is prohibited from brokering, 

financing, guaranteeing, or approving the entry by any foreign person, 

including a foreign affiliate, into a contract for the development of, 

e.g., a natural gas field, a tourist hotel complex, or a rubber 

plantation in Burma, unless pursuant to the affiliate's exercise of 

rights under an agreement entered into prior to the effective date. An 

independent U.S. contractor, however, may perform brokerage, financing, 

or guarantee services if under a service contract meeting the conditions 

of Sec. 537.204.

    (2) The sale to a foreign person of a U.S. person's equity or income 

interest in a development project in Burma constitutes facilitation of 

that foreign person's investment in Burma, unless pursuant to a pre-

effective date agreement. Such a sale, however, is authorized by general 

license under Sec. 537.504.

    (3) A U.S. national or permanent resident alien employed in Burma or 

in a third country by a foreign person may participate in any decision-

making role in an activity by the foreign person that includes economic 

development of resources located in Burma as exempt employment services 

pursuant to Sec. 537.204, unless such services are undertaken pursuant 

to a post-effective date agreement between the foreign person and the 

Government of Burma or a nongovernmental entity in Burma and:

    (i) involve the general supervision and guarantee of the foreign 

person's performance of a contract for the economic development of 

resources located in Burma, or

    (ii) where the individual U.S. person's compensation is provided 

for, in whole or in part, from shares of ownership in the development 

project or participation in royalties, earnings, or profits in the 

development project.