The Burma/Myanmar (Financial Restrictions) Regulations 2009

PART 5 Prohibitions concerning designated enterprises

Prohibition against financing designated enterprises

13.—(1) A person must not finance a designated enterprise.

(2) In this regulation, “finance” means—

(a) grant any loan or credit to a designated enterprise;

(b) acquire bonds, certificates of deposit, warrants or debentures issued by a designated enterprise being a person listed in Annex VII of the EC Regulation or a person whom the Treasury have reasonable grounds for suspecting of being such a person; or

(c) acquire or increase a participation or shareholding, including shares and securities of a participating nature, in a designated enterprise.

(3) A person who contravenes the prohibition in paragraph (1) is guilty of an offence.

(4) In proceedings for an offence under this regulation, it is a defence for a person to show that they did not know and had no reasonable cause to suspect that the body being financed was a designated enterprise.

Prohibition against creating a joint venture

14.—(1) A person must not create a joint venture with—

(a) a designated enterprise;

(b) a subsidiary enterprise of a designated enterprise; or

(c) a person under the control of a designated enterprise.

(2) A person who contravenes the prohibition in paragraph (1) is guilty of an offence.

(3) In proceedings for an offence under this regulation, it is a defence for a person to show that they did not know and had no reasonable cause to suspect that the joint venture was being created with a body falling within sub-paragraph (a), (b) or (c) of paragraph (1).

Exceptions

15.—(1) Subject to paragraph (2), a person is not guilty of an offence under regulation 13 if the financing of the designated enterprise takes place pursuant to an obligation, contract or agreement which arose or was concluded before the date on which the enterprise was first designated as indicated in Annex V or Annex VII of the EC Regulation.

(2) Paragraph (1) does not apply where the financing of a designated enterprise consists of—

(a) an increase in a participation or shareholding in the enterprise unless the person informs the Treasury of their intention to undertake such an increase before it takes place; or

(b) the acquisition of a participation or shareholding in a designated enterprise.

Trade contracts

16.  The prohibition in regulation 13(1) does not apply to—

(a) the execution of trade contracts for the supply of goods or services on usual commercial payment conditions; and

(b) any supplementary agreements connected with the execution of such contracts.

Circumvention

17.  Any person who participates, knowingly and intentionally, in activities the object or effect of which is, directly or indirectly, to—

(a) circumvent the prohibition in regulation 13(1) or 14(1); or

(b) enable or facilitate the commission of an offence under regulation 13 or 14;

is guilty of an offence.