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Federal Reserve Bank of Dallas
2200 N. PEARL ST.
DALLAS, TX 75201-2272

May 12, 2004

Notice 04-26
TO: The Chief Executive Officer of each
financial institution and others concerned
in the Eleventh Federal Reserve District
SUBJECT
Imposition of Special Measures Against Burma,
Myanmar Mayflower Bank, and Asia Wealth Bank
DETAILS
The Board of Governors of the Federal Reserve System has issued SR letter 04-6 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 May 12, 2004. FinCEN’s
final rules can be found at www.fincen.gov/burma.pdf and www.fincen.gov/mayflowerbank.pdf.
ATTACHMENT
A copy of the Board’s SR letter is attached.
MORE INFORMATION
Paper copies of this notice or previous Federal Reserve Bank notices can be printed from
our web site at www.dallasfed.org/banking/notices/index.html.

For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal
Reserve Bank of Dallas: Dallas Office (800) 333-4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012;
Houston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810.

BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
DIVISION OF BANKING
SUPERVISION AND REGULATION

SR 04-6
May 3, 2004
TO THE OFFICER IN CHARGE OF SUPERVISION
AT EACH FEDERAL RESERVE BANK
SUBJECT:

Imposition of Special Measures against Burma, Myanmar Mayflower
Bank, and Asia Wealth Bank

The Board of Governors of the Federal Reserve System is issuing this
SR letter 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 http://www.fincen.gov/burma.pdf and
http://www.fincen.gov/mayflowerbank.pdf.
Section 311 provides that the Secretary of the Treasury, in
consultation with the Secretary of State and the U.S. Attorney General, may designate
particular financial institutions, types of accounts, classes of transactions, or foreign
jurisdictions as being of “primary money laundering concern.”1 If such a designation is
made, Section 311 grants the Secretary of the Treasury the further authority to require
U.S. financial institutions to take various “special measures” including additional
recordkeeping and reporting requirements, with respect to the designated financial
institutions, jurisdictions, accounts, or transactions. In the case of a designated
jurisdiction or financial institution, the Secretary, in consultation with the Chairman of
the Board of Governors of the Federal Reserve System and other appropriate federal
government agencies, may restrict or prohibit U.S. financial institutions from opening or
maintaining correspondent accounts involving the designated entity.
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 13310.2 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 take the sanctions a step further. They
generally restrict U.S. financial institutions from entering into direct as well as indirect
transactions with Burmese banking organizations. With regard to indirect transactions,
U.S. financial institutions are required, for example, to ensure that the correspondent or
payable-through accounts they maintain in the United States for any foreign bank are
not used by the foreign bank to provide banking services to 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.
Reserve Banks are asked to distribute this SR letter to the domestic
and foreign banking organizations supervised by the Federal Reserve as well as to
supervisory and examination staff. If you have any questions regarding these special
measures, please contact Bridget M. Neill, Manager, Anti-Money Laundering Policy
and Compliance Section, (202/452-5235) or Laurie Bender, Senior Special
Anti-Money Laundering Examiner, (202/452-3794).
Richard Spillenkothen
Director

Notes:
1. On November 18, 2003, the Secretary of the Treasury designated Burma as a
jurisdiction of primary money laundering concern, and Myanmar Mayflower
Bank and Asia Wealth Bank as financial institutions of primary money
laundering concern.
2. Executive Order 13310 of July 28, 2003, Blocking Property of the Government
of Burma and Prohibiting Certain Transactions.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102