Burma Sanctions

May 21, 2019: SECO amends a bunch of Myanmar listings

On Tuesday, Swiss authorities amended the following individuals sanctioned under its Myanmar program:

SSID: 145-39366 Name: Aung Kyaw Zaw

Sex: M DOB: 20 Aug 1961 Identification document: Passport No. DM000826, Myanmar, Date of issue: 22 Nov 2011, Expiry date: 21 Nov 2021

Justification: Lieutenant General Aung Kyaw Zaw was the Commander of the Bureau of Special Operations No. 3 of the Myanmar Armed Forces (Tatmadaw) from AugustAug 2015 to the end of 2017. The Bureau of Special Operations No. 3 oversaw the Western Command and, in that context, Lieutenant General Aung Kyaw Zaw is responsible for the atrocities and serious human rights violations committed against the Rohingya population in Rakhine State by the Western Command during that period. These include unlawful killings, sexual violence and the systematic burning of Rohingya houses and buildings. Other information: Military identification number: BC 17444 Modifications: Listed on 17 Oct 2018, amended on 21 May 2019

SSID: 145-39379 Name: Maung Maung Soe

Sex: M DOB: Mar 1964

Justification: Major General Maung Maung Soe was the Commander of the Western Command of the Myanmar Armed Forces (Tatmadaw) from OctoberOct 2016 to 10 Nov. 2017 and oversaw the military operations in Rakhine State. In that context, he is responsible for the atrocities and serious human rights violations committed against Rohingya population in Rakhine State by the Western Command during that period. These include unlawful killings, sexual violence and systematic burning of Rohingya houses and buildings. Other information: National Identification Number: Tatmadaw Kyee 19571 Modifications: Listed on 17 Oct 2018, amended on 21 May 2019

SSID: 145-39388 Name: Than Oo

Sex: M DOB: 12 Oct 1973

Justification: Brigadier General Than Oo is the Commander of the 99th Light Infantry Division of the Myanmar Armed Forces (Tatmadaw). In that context, he is responsible for the atrocities and serious human rights violations committed against the Rohingya population in Rakhine State in the second half of 2017 by the 99th Light Infantry Division. These include unlawful killings, sexual violence and the systematic burning of Rohingya houses and buildings. Other information: Military identification number: BC 25723 Modifications: Listed on 17 Oct 2018, amended on 21 May 2019

SSID: 145-39394 Name: Aung Aung

Sex: M

Justification: Brigadier General Aung Aung is the Commander of the 33rd Light Infantry Division of the Myanmar Armed Forces (Tatmadaw). In that context, he is responsible for the atrocities and serious human rights violations committed against the Rohingya population in Rakhine State in the second half of 2017 by the 33rd Light Infantry Division. These include unlawful killings, sexual violence and the systematic burning of Rohingya houses and buildings. Other information: Military identification Number: BC 23750 Modifications: Listed on 17 Oct 2018, amended on 21 May 2019

SSID: 145-39399 Name: Khin Maung Soe

Sex: M DOB: 1972

Justification: Brigadier General Khin Maung Soe is the Commander of the Military Operation Command 15, also sometimes known as the 15th Light Infantry Division, of the Myanmar Armed Forces (Tatmadaw), under which Infantry Battalion No. 564 falls. In that context, he is responsible for the atrocities and serious human rights violations committed against the Rohingya population in Rakhine State in the second half of 2017 by the Military Operation Command 15, in particular by Infantry Battalion No. 564. These include unlawful killings, sexual violence and the systematic burning of Rohingya houses and buildings. Modifications: Listed on 17 Oct 2018, amended on 21 May 2019

SSID: 145-39403 Name: Thura San Lwin

Sex: M DOB: 195717 Mar 1959

Justification: Brigadier General Thura San Lwin was the Commander of the Border Guard Police from OctoberOct 2016 until early OctoberOct 2017. In that context, he is responsible for the atrocities and serious human rights violations committed against Rohingya population in Rakhine State by the Border Guard Police during that period. These include unlawful killings and systematic burning of Rohingya houses and buildings. Modifications: Listed on 17 Oct 2018, amended on 21 May 2019

SSID: 145-39408 Name: Thant Zin Oo

Sex: M

Justification: Thant Zin Oo is the Commander of the 8th Security Police Battalion. In that context, he is responsible for the atrocities and serious human rights violations committed against Rohingya population in Rakhine State in the second half of 2017 by the 8th Security Police Battalion. The serious human rights violations include unlawful killings and systematic burning of Rohingya houses and buildings. Those violations were conducted in conjunction with and in direct support of the 33rd Light Infantry Division of the Myanmar Armed Forces (Tatmadaw) led by Brigadier General Aung Aung. Thant Zin Oo is therefore associated with listed person, Brigadier General Aung Aung. Relation: Associated with Aung Aung (SSID 145-39394) Modifications: Listed on 17 Oct 2018, amended on 21 May 2019

SSID: 145-39980 Name: Ba Kyaw

Sex: M

Justification: Ba Kyaw is a Staff Sergeant in the 564th Light Infantry Battalion (LIB) of the Myanmar Armed Forces (Tatmadaw). He committed atrocities and serious human rights violations, including murder, deportation and torture, against the Rohingya population in Rakhine State in the second half of 2017. In particular, he has been identified as one of the key perpetrators of the Maung Nu massacre on 27 Aug 2017. Modifications: Listed on 18 Jan 2019, amended on 21 May 2019

SSID: 145-39984 Name: Tun Naing

Sex: M

Justification: Tun Naing is the Commanding Officer of the Border Guard Police (BGP) base in Taung Bazar. In that capacity, he is responsible for the atrocities and serious human rights violations against the Rohingya population in Rakhine State committed by the BGP in Taung Bazar before, around and after 25 Aug 2017, including forced detention, ill-treatment and torture. Modifications: Listed on 18 Jan 2019, amended on 21 May 2019

SSID: 145-39988 Name: Khin Hlaing

Sex: M DOB: 2 May 1968

Justification: Brigadier General Khin HLaing is the former Commander of the 99th Light Infantry Division (LID) and the current Commander of the North-eastern Command of the Myanmar Armed Forces (Tatmadaw). As the Commander of the 99th LID he oversaw military operations carried out in Shan State in 2016 and early 2017. In that context, he is responsible for the atrocities and serious human rights violations committed against ethnic minority villagers in Shan State in the second half of 2016 by the 99th LID. These include unlawful killings, forced detention and destruction of villages. Modifications: Listed on 18 Jan 2019, amended on 21 May 2019

SSID: 145-39993 Name: Aung Myo Thu

Sex: M

Justification: Major Aung Myo Thu is the Field Unit Commander of 33rd Light Infantry Division (LID) of the Myanmar Armed Forces (Tatmadaw). As the Field Unit Commander of the 33rd LID he oversaw military operations carried out in Rakhine State in 2017. In that context, he is responsible for the atrocities and serious human rights violations committed against the Rohingya population in Rakhine State in the second half of 2017 by the 33rd LID. These include unlawful killings, sexual violence and forced detention. Modifications: Listed on 18 Jan 2019, amended on 21 May 2019

SSID: 145-39997 Name: Thant Zaw Win

Sex: M

Justification: Thant Zaw Win is a Major in the 564th Light Infantry Battalion (LIB) of the Myanmar Armed Forces (Tatmadaw). In that capacity, he oversaw military operations carried out in Rakhine State and is responsible for the atrocities and serious human rights violations committed against the Rohingya population in Rakhine State by the 564th LIB, notably in and around Maung Nu village on 27 Aug 2017. These include unlawful killings, sexual violence and systematic burning of Rohingya houses and buildings. Modifications: Listed on 18 Jan 2019, amended on 21 May 2019

SSID: 145-40001 Name: Kyaw Chay

Sex: M

Justification: Kyaw Chay is a Corporal in the Border Guard Police (BGP). He was formerly based in Zay Di Pyin and was the Commanding Officer of the BGP base in Zay Di Pyin in the period around 25 Aug 2017 when a series of human rights violations were committed by the BGP under his command. In that context, he is responsible for the atrocities and serious human rights violations by the BGP against the Rohingya population in Rakhine State in that period. He also participated in serious human rights violations. These violations include the ill-treatment of detainees and torture. Modifications: Listed on 18 Jan 2019, amended on 21 May 2019

SSID: 145-40005 Name: Nyi Nyi Swe

Sex: M

Justification: Major General Nyi Nyi Swe is the former Commander of the Northern Command of the Myanmar Armed Forces (Tatmadaw). In that capacity, he is responsible for the atrocities and serious human rights violations committed in Kachin State from May 2016 to Apr 2018 (until his appointment as Commander of the South-western Command) by the Northern Command, including ill-treatment of civilians. He is also responsible for obstructing the provision of humanitarian assistance to civilians in need in Kachin State in that period, in particular the blocking of food transports. Modifications: Listed on 18 Jan 2019, amended on 21 May 2019

The huge bulk of these changes are either replacing month names with abbreviations or adding the sex of the party.

Links:

Data files of updates – PDF, XML

May 1, 2019: EU, OFSI amend 2 under Burma sanctions

On Wednesday, UK regulators implemented Council Implemented Regulation (EU) 2019/672 by amending the following individual designations under the Burma sanctions program:

1. SOE Khin Maung

Title: Brigadier General DOB: –/–/1972. Position: Commander of the 15th Light Infantry Division of the Myanmar Armed Forces (Tatmadaw) Commander of the Military Operation Command 15, also sometimes known as the 15th Light Infantry Division, of the Myanmar Armed Forces (Tatmadaw), under which Infantry Battalion No 564 falls. Listed on: 26/06/2018 Last Updated: 13/08/2018 01/05/2019 Group ID: 13689.

2. LWIN Thura San

Title: Brigadier General DOB: –/–/1957 17/03/1959. Other Information: Brigadier General Thura San Lwin was the Commander of the Border Guard Police from October 2016 until early October 2017. Listed on: 26/06/2018 Last Updated: 26/06/2018 01/05/2019 Group ID: 13692.

Links:

OFSI Notice

Council Implementing Regulation (EU) 2019/672

April 29, 2019: EU extends Myanmar sanctions

Link:

EU Notice

While I was at ACAMS: 3-for-1 OFAC settlements with UniCredit Germany, Austria and Italy units

Settlement Agreements between the U.S. Department of the Treasury’s Office of Foreign Assets Control and UniCredit Group Banks

4/15/2019

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today announced three separate settlements totaling $611 million with the following UniCredit Group banks: UniCredit Bank AG in Germany, UniCredit Bank Austria AG in Austria, and UniCredit S.p.A. in Italy.  The settlements resolve OFAC’s investigations into apparent violations of a number of U.S. sanctions programs, including those related to weapons of mass destruction proliferation, global terrorism, and the following countries: Burma, Cuba, Iran, Libya, Sudan, and Syria.

Between January 2007 and December 2011, UniCredit Bank AG processed over 2,000 payments totaling over $500 million through financial institutions in the United States in apparent violation of multiple U.S. sanctions programs.  During this time period, UniCredit operated U.S. dollar accounts on behalf of the Islamic Republic of Iran Shipping Lines (IRISL) and several companies owned by or otherwise affiliated with IRISL, and managed the accounts of those companies in a manner that obscured the interest or involvement of IRISL in transactions sent to or through U.S. intermediaries.  For a number of years up to and including 2011 (UniCredit Bank AG) and 2012 (UniCredit Bank Austria AG and UniCredit S.p.A.), all three banks processed payments to or through the United States in a manner that did not disclose underlying sanctioned persons or countries to U.S. financial institutions which were acting as financial intermediaries.

 

OFAC determined that the apparent violations largely constituted egregious cases and that the banks did not voluntarily self-disclose the apparent violations.

After Mr. Watchlist gets back from ACAMS, he will dig into the Enforcement Information and Settlement Agreements.

By the way, this is part of a multi-agency settlement totaling 1.3 billion dollars.

Links:

OFAC Notice

Enforcement Information

Settlement Agreements: UniCredit Bank AG (Germany), UniCredit Bank Austria AG, UniCredit S.p.A. (Italy)

The fun starts on page 14…

of the Standard Chartered settlement with OFAC – it’s a roadmap to what real remediation looks like, and the standards for a firm of size and commercial sophistication are:

Specifically, OFAC and Respondent understand that the following compliance commitments have been made:

a. Management Commitment:

i. Respondent commits that Senior Management has reviewed and approved Respondent’s sanctions compliance program.

ii. Respondent commits to ensuring that its senior management. including senior leadership, executives, and/or the board of directors, are committed to supporting Respondent’s sanctions compliance program.

iii. Respondent commits to ensuring that its compliance unit(s) are delegated sufficient authority and autonomy to deploy its policies and procedures in a manner that effectively controls Respondent’s OFAC risk.

iv. Respondent commits to ensuring that its compliance unit(s) receive adequate resources-tncluding in the form of human capital, expertise, information technology, and other resources, as appropriate- that are relative to Respondent’s breadth of operations, target and secondary markets, and other factors affecting its overall risk profile.

v. Respondent commits to ensuring that Senior Management promotes a “culture of compliance” throughout the organization.

vi. Respondent’s Senior Management demonstrates recognition of the seriousness of apparent violations of the laws and regulations administered by OFAC, and acknowledges its understanding of the apparent violations at issue, and commits to implementing necessary measures to reduce the risk of reoccurrence of similar conduct and apparent violations from occurring in the future.

b. Risk Assessment:

i. Respondent conducts an OF AC risk assessment in a manner, and with a frequency, that adequately accounts for potential risks. Such risks could be posed by its clients and customers, products, services, supply chain, intermediaries, counter-parties, transactions, and geographic locations, depending on the nature of the organization. The risk assessment will be updated to account for the root causes of any apparent violations or systemic deficiencies identified by Respondent during the routine course of business.

ii. Respondent has developed a methodology to identify,,analyze, and address the particular risks it identifies. The risk assessment will be updated to account for the conduct and root causes of any apparent violations or systemic deficiencies identified by Respondent during the routine course of business, for example, through a testing or audit function.

c. Internal Controls:

i. Respondent has designed and implemented written policies and procedures outlining its sanctions compliance program. These policies and procedures are relevant to the organization. capture Respondent’s day-to-day operations and procedures, are easy to follow, and prevent employees from engaging in misconduct.

ii. Respondent has implemented internal controls that adequately address the results of its OF AC risk assessment and profile. These internal controls should enable Respondent to clearly and effectively identify, interdict, escalate, and report to appropriate personnel within the organization transactions and activity that may be prohibited by OF AC. To the extent information technology solutions factor into Respondent•s internal controls, Respondent has selected and calibrated the solutions in a manner that is appropriate to address Respondent’s risk profile and compliance needs, and Respondent routinely tests the solutions to ensure effectiveness.

iii. Respondent commits to enforcing the policies and procedures it implements as part of its sanctions compliance internal controls through internal and/or external audits.

iv. Respondent commits to ensuring that its OF AC-related recordkeeping policies and procedures adequately account for its requirements pursuant to the sanctions programs administered by OF AC.

v. Respondent commits to ensuring that, upon learning of a weakness in its internal controls pertaining to sanctions compliance, it will take immediate and effective action, to the extent possible, to identify and implement compensating controls until the root cause of the weakness can be determined and remediated.

vi. Respondent has clearly communicated the sanctions compliance program’s policies and procedures to all relevant staff, including personnel within the sanctions compliance function, as well as relevant gatekeepers and business units operating in high-risk areas (e.g., customer acquisition, payments, sales, etc.) and to external parties performing sanctions compliance responsibilities on behalf of Respondent.

vii. Respondent has appointed personnel to integrate the sanctions compliance program’s policies and procedures into Respondent’s daily operations. This process includes consultations with relevant business units, and ensures that Respondent’s employees understand the policies and procedures.

d. Testing and Audit:

i. Respondent commits to ensuring that the testing or audit function is accountable to senior management, is independent of the audited activities and functions, and has sufficient authority, skills, expertise, and resources within the organization.

ii. Respondent commits to ensuring that it employs testing or audit procedures appropriate to the level and sophistication of its sanctions compliance program and that this function, whether deployed internally or by an external party, reflects a comprehensive and objective assessment of Respondent’s OFAC-related risks and internal controls.

iii. Respondent commits to ensuring that, upon learning of a confirmed negative testing or audit result pertaining to its sanctions compliance program, it will take immediate and effective action to identify and implement compensating controls until the root cause of the weakness can be detennined and remediated.

e. Training:

i. Respondent commits to ensuring that its OF AC-related training program provides adequate information and instruction to employees and, as appropriate, stakeholders (for example, clients, suppliers, business partners, and counterparties) in order to support Respondenes sanctions compliance efforts.

ii. Respondent commits to providing OF AC-related training with a scope that is appropriate for the products and services it offers; the customers, clients, and partner relationships it maintains; and the geographic regions in which it operates.

m. Respondent commits to providing OF AC-related training with a frequency that is appropriate based on its OFAC risk assessment and risk profile and, at a minimum, at least once a year to all relevant employees.

iv. Respondent commits to ensuring that, upon learning of a confirmed negative testing result or audit finding, or other deficiency pertaining to its sanctions compliance program, it will take immediate and effective action to provide training to relevant personnel.

v. Respondent’s training program includes easily accessible resources and materials that are available to all applicable personnel.

In addition, the agreed to annual certifications to OFAC for 5 years attesting to the implementation and maintenance of the compliance measures.

Mr. Watchlist is impressed.

Link:

OFAC Settlement with Standard Chartered Bank

SECO adds 7 to Myanmar sanctions

Earlier today, Swiss authorities added the following persons:

SSID: 145-39980 Name: Ba Kyaw

Justification: Ba Kyaw is a Staff Sergeant in the 564th Light Infantry Battalion (LIB) of the Myanmar Armed Forces (Tatmadaw). He committed atrocities and serious human rights violations, including murder, deportation and torture, against the Rohingya population in Rakhine State in the second half of 2017. In particular, he has been identified as one of the key perpetrators of the Maung Nu massacre on 27 Aug 2017. Modifications: Listed on 18 Jan 2019

SSID: 145-39984 Name: Tun Naing

Justification: Tun Naing is the Commanding Officer of the Border Guard Police (BGP) base in Taung Bazar. In that capacity, he is responsible for the atrocities and serious human rights violations against the Rohingya population in Rakhine State committed by the BGP in Taung Bazar before, around and after 25 Aug 2017, including forced detention, ill-treatment and torture. Modifications: Listed on 18 Jan 2019

SSID: 145-39988 Name: Khin Hlaing

DOB: 2 May 1968

Justification: Brigadier General Khin HLaing is the former Commander of the 99th Light Infantry Division (LID) and the current Commander of the North-eastern Command of the Myanmar Armed Forces (Tatmadaw). As the Commander of the 99th LID he oversaw military operations carried out in Shan State in 2016 and early 2017. In that context, he is responsible for the atrocities and serious human rights violations committed against ethnic minority villagers in Shan State in the second half of 2016 by the 99th LID. These include unlawful killings, forced detention and destruction of villages. Modifications: Listed on 18 Jan 2019

SSID: 145-39993 Name: Aung Myo Thu

Justification: Major Aung Myo Thu is the Field Unit Commander of 33rd Light Infantry Division (LID) of the Myanmar Armed Forces (Tatmadaw). As the Field Unit Commander of the 33rd LID he oversaw military operations carried out in Rakhine State in 2017. In that context, he is responsible for the atrocities and serious human rights violations committed against the Rohingya population in Rakhine State in the second half of 2017 by the 33rd LID. These include unlawful killings, sexual violence and forced detention. Modifications: Listed on 18 Jan 2019

SSID: 145-39997 Name: Thant Zaw Win

Justification: Thant Zaw Win is a Major in the 564th Light Infantry Battalion (LIB) of the Myanmar Armed Forces (Tatmadaw). In that capacity, he oversaw military operations carried out in Rakhine State and is responsible for the atrocities and serious human rights violations committed against the Rohingya population in Rakhine State by the 564th LIB, notably in and around Maung Nu village on 27 Aug 2017. These include unlawful killings, sexual violence and systematic burning of Rohingya houses and buildings. Modifications: Listed on 18 Jan 2019

SSID: 145-40001 Name: Kyaw Chay

Justification: Kyaw Chay is a Corporal in the Border Guard Police (BGP). He was formerly based in Zay Di Pyin and was the Commanding Officer of the BGP base in Zay Di Pyin in the period around 25 Aug 2017 when a series of human rights violations were committed by the BGP under his command. In that context, he is responsible for the atrocities and serious human rights violations by the BGP against the Rohingya population in Rakhine State in that period. He also participated in serious human rights violations. These violations include the ill-treatment of detainees and torture. Modifications: Listed on 18 Jan 2019

SSID: 145-40005 Name: Nyi Nyi Swe

Justification: Major General Nyi Nyi Swe is the former Commander of the Northern Command of the Myanmar Armed Forces (Tatmadaw). In that capacity, he is responsible for the atrocities and serious human rights violations committed in Kachin State from May 2016 to Apr 2018 (until his appointment as Commander of the South-western Command) by the Northern Command, including ill-treatment of civilians. He is also responsible for obstructing the provision of humanitarian assistance to civilians in need in Kachin State in that period, in particular the blocking of food transports. Modifications: Listed on 18 Jan 2019

to its Myanmar sanctions program. The Watchlists page will be updated later today.

Links:

FINMA Notice

Data files of updates – PDF, XML

December 24, 2018: EU, OFSI add 7 to Burma sanctions

On Christmas Eve, UK regulators implemented Council Implementing Regulation (EU) No 2018/2053 by adding the following persons:

1. KYAW Ba

Title: Staff Sergeant Other Information: Ba Kyaw is a Staff Sergeant in the 564th Light Infantry Battalion (LIB) of the Myanmar Armed Forces (Tatmadaw). Listed on: 24/12/2018 Last Updated: 24/12/2018 Group ID: 13733.

2. NAING Tun

Other Information: Tun Naing is the Commanding Officer of the Border Guard Police (BGP) base in Taung Bazar. Listed on: 24/12/2018 Last Updated: 24/12/2018 Group ID: 13734.

3. HLAING Khin

Title: Brigadier General DOB: 02/05/1968. Other Information: Brigadier General Khin HLaing is the former Commander of the 99th Light Infantry Division (LID) and the current Commander of the North-eastern Command of the Myanmar Armed Forces (Tatmadaw). Listed on: 24/12/2018 Last Updated: 24/12/2018 Group ID: 13735.

4. THU Aung Myo

Title: Major Other Information: Major Aung Myo Thu is the Field Unit Commander of 33rd Light Infantry Division (LID) of the Myanmar Armed Forces (Tatmadaw). Listed on: 24/12/2018 Last Updated: 24/12/2018 Group ID: 13736.

5. WIN Thant Zaw

Title: Major Other Information: Thant Zaw Win is a Major in the 564th Light Infantry Battalion (LIB) of the Myanmar Armed Forces (Tatmadaw). Listed on: 24/12/2018 Last Updated: 24/12/2018 Group ID: 13737.

6. CHAY Kyaw

Title: Corporal Other Information: Kyaw Chay is a Corporal in the Border Guard Police (BGP). He was formerly based in Zay Di Pyin and was the Commanding Officer of the BGP base in Zay Di Pyin in the period around 25 August 2017. Listed on: 24/12/2018 Last Updated: 24/12/2018 Group ID: 13738.

7. SWE Nyi Nyi

Title: Major General Position: Commander of the South-western Command of the Myanmat Armed Services Other Information: Major General Nyi Nyi Swe is the former Commander of the Northern Command of the Myanmar Armed Forces (Tatmadaw). In that capacity, he is responsible for the atrocities and serious human rights violations committed in Kachin State from May 2016 to April 2018 (until his appointment as Commander of the South-western Command. Listed on: 24/12/2018 Last Updated: 24/12/2018 Group ID: 13739.

to their Burma sanctions program.

Links:

OFSI Notice

Council Implementing Regulation (EU) No 2018/.2053