The Republic of the Union of Myanmar

Central Committee for Counter Terrorism
Order No. (1/2018)
The 3'd Waning of Second Waso, 1380, M.E, Nay pyi Taw(3otn Juty 2ot8)

Directive on conducting financial transactions to comply with United Nations
Security Council's Resolution-UNSCR 2270 (2016) and successor resolutions

1. In accordance with the United Nations Security Council Resolution-UNSCR
2270 (2016) and successor resolutions to impose enhanced sanction measures against

the Democratic People's Republic of Korea, all the United Nations Member States
including Myanmar shall conduct financial transactions as follows:(a) pursuant to the United Nations Security Council Resolution-UNSCR
1540 QAjq and successor resolutions, all the United Nations Member
States have an obligation to prevent the proliferation of weapons of mass

destruction, and are obliged to impose financial sanctions in order tocombat the financing of proliferation of weapons of mass destruction

from any designated individuals and entities designated under UNSCR
1718 (2006);(b) to prohibit the trade of weapons and related materials, the import andexport of small arrns and light weapons (weapons of mass destruction andrelated materials of the Democratic People's Republic of Korea);(c) to inspect all cargoes within or transiting through it's territory, that hasoriginated in the DPRK, or that is destined for the DpRK;(d) to include sanctions on the trade in natural resources in implementing
these sanctions;(e) to freeze the assets of persons from the states which have an agreement tocooperate with the Government or political parties of the DPRK in theDPRK's nuclear and ballistic missile program or prohibited activities;

(0to prohibit the opening and operation of new branches, subsidiaries, andrepresentative offices of DPRK banks; and to make further prohibition

against financial institutions from establishing new joint ventures withand from taking an ownership interest in DPRK banks;(g)to close the existing branches, subsidiaries and representative offices of
DPPK banks within ninety days from the adoption of this resolution;(Financial action shall be taken strictly. Low risk result of the assessment
shall not be used as a reason to freeze the assets.)(h)to declare, without delay, the resolutions by reporting entities about
UNSCR's sanctions against the DPPK called for the frozen assets ofdesignated individuals and those associated with weapons of mass
destruction. This also applies to activities of individuals acting on theirbehalf or at their direction and their direct or indirect activities;(i)to prohibit use of prohibited materials, equipment, goods and technology
specified in the resolutions, or the provision of financial services orfinancial resources or financial assistance related to the manufacture, or
sale or transfer of such materials, equipment, goods and technology to theDPRK. Beside these, the travel ban to Myanmar is imposed;C)

to give notice the following methods for avoiding detection and sanctions
under the sanction measures against persons involving in the proliferationof weapons of mass destruction;(1)

making transactions through the financial sector and theintemational trade to disguise iIlegal activities, mostly by using
front companies ; multi-layered intermediaries; conducting complex
transactions; the transfer of gold bars; using a private accountinstead of using a company's account to conceal the source offunds or the true ownership; shell banks; using any shipping route

via countries where a control is lax; a bill of lading does notconform to the requirements because of the trading or areas ofgoods lransport or a level of technology of the country; abnormallylow prices of goods; a lack of a clear purpose; a lack of names orother relevant documents in a transfer or a payment order;
inconsistency of information contained in the documents such as

name, address or destination of goods and business; financialtransactions or delivery of goods from the countries having

deficiencies in anti-money laundering and the financing ofterrorism; using fictitious names or not i.dentifuing names intransfer or using the DPRK diplomatic channel.
(2)

conducting financial transactions without identifuing the name ofvessels by Malaysia, Singapore and Thailand which are financial

institutions conducting financial transactions with the DPPK asintermediaries financial institutions when financial transactions
have been conducted for the Ocean Maritime Management which
has been placed on the designated list \n2014.

(3)

trying to conceal the destination by procuring companies throughchanging the bill of lading and replacing with a number of cargoes,forging the vessel's name and the International Maritime
Organization (IOM) number and transiting across several
territories.

2.

Therefore, the Central Committee for Counter Terrorism, issues this order by

exercising the power conferred under section 6(d) and section 72 of the Counter
Terrorism Law.

3.

A11 nationals, individuals and entities within Myanmar including all reporting

entities shall, without delay and prior notice, freeze the funds and assets that are

wholly or jointly or directly or indirectly owned or controlled by designated entities,business or individuals as specified in article 2 of the IJNSCR 2270 (2016) andsuccessor resolutions; the funds and other assets derived or accrued from the funds andother assets directly or indirectly owned or controlled by designated entities orindividuals; and the funds and other assets of individuals and entities acting on behalfof, or at the direction of designated individuals or entities.

4.

The Central Committee for Counter Terrorism has issued the Order No. 1/2017

on 22"d February 2Ol7 and distributed it to all reporting entities to freeze the finance,
the assets and funds of individuals and entities designated under the TINSCR 2270

(2016) and successor resolutions related to the combating of the financing ofproliferation of weapons of mass destruction.

5.

The reporting entities and the relevent departments shall, therefore, carry out thefollowing measures in line with the UNSCRs and international standards related to thecombating of the financing of proliferation of weapons of lnass destruction:(r)monitoring the organizations, businesses and banks of DPRK including
its nationals in accordance with the customer due diligence process;(b) reporting to the Financial Intelligence Unit (FIU) about all banks which
conduct financial transactions with any subsidiary bank of the DPRK;(")

reporting to the Financial Intelligence Unit (FIU) about all Myanmar

financial institutions if they have any relationship with the DPRK's
financial institutions;(d) ensuring that financial institutions and insurance firms refrain fromproviding financial services to the DPPK's vessels; monitoring accounts
and transactions of maritime transport companies or agents not to involvein transactions relating to the DPRK; monitoring strictly on high risk
financial transactions; and collecting data from customers as much aspossible; (e.g. persons who involved in financial transactions, receivers,imports, permits, sources of funds, beneficiaries and objectives offinancial transactions)(e) ensuring to seize the funds and assets which are directly or indirectly
owned by or linked to individuals or entities designated by the 1718
Sanction Committee of the United Nations Security Council.

6.

Reporting organizations that fail to carry out the customer due diligence process

related to designated individuals and entities shall be punished in accordance with theprovisions of Anti-Money Laundering Law or the Counter Terrorism Law.

7. Ary funds or other assets are prevented from being made available by all
nationals, individuals and entities within Myanmar including all reporting entities todesignated individuals or entities or for the benefit of them without the permission of

the Central Committee for Counter Terrorism and without notiflring in accordancewith the relevant resolutions of the United Nations Security Council.

8.

A11 reporting entities are required to access the sanction list of designatedindividuals and entities in the United Nations Security Council's website which areissued from time to time by the United Nations Security Council or in the FinancialIntelligence Unit's website at www.mfiu.qov.mm in timely manner in order to takequick response to the financing of proliferation of weapons of mass destruction andfreeze the assets of designated individuals and entities, without delay and prior notice,according to the above directives. All reporting entities shall examine whether theassets of the listed individuals and entities are in their possession when the lists ofindividuals and entities are declared again, report findings within three working days,
fteeze the assets without delay, report the frozen assets and report actions taken to theCentral Committee for Counter Terrorism.

For Chairman(Police Lieutenant General Aung Win Oo, Secretary)
Central Committee for Counter Terrorism
Letter No:

264s (1) / 10-1-3 (a) /Date:

3oth July, zol1

G 4

Circulated to;Governor, Central Bank of Myanmar (to issue further directive to organizations

which are under the supervision of the Central Bank of Myanmar)
Myanmar Investment Commission
Yangon City Development Committee
Mandalay City Development Committee.
'Nay Pyi Taw City Development Committee
Customs Department

Internal Revenue Department
Department of Agricultural Land Management and Statistics
Department of Marine Administration
Road Transport Administration Department

Department of Human Settlement and Housing Development
Department of City Development
Department of Trades
Directorate of Investment and Company Administration
F inancial Regulatory Department

Department of Mines

Myanmar Gems Enterprise
Bar Council

Myanmar Institute of Certified Public Accountants
Notary Public
Myanmar Securities Exchange Centre
Licensed Money Transfer Services
Real Estate Agents.u

Dealers of Precious Metals and Stones

Andaman Club Hotel (Thuhtay Island)
A11 reporting entities

Copy to:Office of the President
Union Minister, Ministry of Foreign Affairs
Union Minister, Ministry of Home Affairs
Union Minister, Ministry of Planning and Finance
Union Minister, Ministry of CommerceChairman, Anti-Money Laundering Central Body
Offi ce Copy/Interdepartmental Circular Letter