On March 7, 2024, Laos moved to regulate the management of foreign-currency income from the exportation of goods and services. Effective March 29, 2024, Decision No. 333 (formally the Decision on Management of Income in Foreign Currency from Exportation of Goods and Services No. 333/BOL) from the Bank of Lao PDR (BOL) aims to incentivize the inflow of such foreign currency into Laos and its sale to licensed commercial banks. Decision No. 333 sets minimum required proportions for importing income in foreign currency derived from the exportation of goods and services, as well as the timeframe for doing so. It also stipulates the requirements for selling such foreign currency to commercial banks in Laos and the minimum proportions that must be sold. Importing Foreign-Currency Income Exporters must receive payments from abroad via bank transfer into a dedicated bank account designated for import-export business activities within the timeline specified in the sale-purchase agreement, but not exceeding 180 days from the date of export. Each sector must import income in foreign currency into the Lao PDR according to the minimum proportion of currency to be imported, and it must be done within the required timeframes, as specified in the table below. The ratios and timeframes are subject to change depending on the circumstances. If exporters cannot comply with the required ratio and timeline, exporters must provide relevant explanatory documents for the BOL’s consideration. Selling Foreign-Currency Income Exporters of goods and services must sell at least the minimum required proportion of their foreign-currency income (see table below) to a commercial bank in Laos. This foreign currency exchange must occur within three working days of receiving the foreign currency into the dedicated bank account in Laos. The selling rate will be determined by the prevailing rate of the commercial bank on the day

On May 30, 2024, the Department of Trade (DOT) under Myanmar’s Ministry of Commerce (MOC) issued two measures tightening restrictions on the arrival and storage of imported goods before the necessary import licenses are obtained. Newsletter No. 3/2024 declares that legal enforcement against goods arriving at ports without the requisite import licenses will commence on July 1, 2024, pursuant to the Export-Import Law, and Newsletter No. 2/2024 reduces the types of goods that may be stored in bonded warehouses without an import license. Arrival of Goods at Ports Pending Import Licenses In July 2020, the MOC had issued a notification outlining the regulations for the importation of goods requiring import licenses prior to their arrival at the ports. This notification stated that actions may be taken under the Export-Import Law against importers who deliver goods to ports before obtaining the necessary import licenses from the MOC. Subsequently, the MOC issued a similar warning to importers in 2022 and a more recent announcement dated April 5, 2024. Now with the issuance of Newsletter No. 3/2024, the DOT is preparing to strengthen its enforcement against goods arriving at ports without the necessary import license already having been obtained. Storage of Goods in Customs Warehouses In December 2023, the MOC issued Newsletter No. 16/2023, which permitted 14 categories of goods to be stored in bonded areas without an import license. However, the DOT’s Newsletter No. 2/2024 eliminated most of the items on that product list, leaving only four categories of goods: Medicines, Various electric vehicles and related accessories, Industrial raw materials and chemical raw materials for industry, and Food raw materials. This allowance is only applicable for bonded areas that comply with customs procedures for bonded warehouses. Newsletter No. 2/2024 takes effect on June 7, 2024. Starting on this date, the MOC

On May 24, 2024, the Central Bank of Myanmar (“CBM”) issued a public notice warning individuals against participating in the sale, purchase, exchange, or transfer of unregulated digital currencies, as well as unauthorized money transfers. The CBM has indicated its readiness to enforce regulations by closing bank accounts and pursuing legal action, which may result in imprisonment, fines, or both, in accordance with the Central Bank of Myanmar Law, the Anti-Money Laundering Law and the Financial Institutions Law. The CBM is the sole legal entity authorized to issue currency in Myanmar, as stipulated in the Central Bank of Myanmar Law. The CBM does not recognize digital currencies as official currency, nor has it granted permission to financial institutions within Myanmar to trade them. The existing legal framework, comprising the Foreign Exchange Management Law and the Financial Institutions Law, further cements the illegality of cryptocurrency transactions within the nation’s borders. Four years ago, in May 2020, the CBM issued Notification No. 9/2020, prohibiting all persons residing in Myanmar from engaging in the sale, purchase, or exchange of unregulated digital currencies. The list of prohibited currencies includes widely recognized cryptocurrencies such as Bitcoin (BTC), Litecoin (LTD), Ethereum (ETH), and Perfect Money (PM), with a particular emphasis on transactions conducted through personal Facebook accounts and web pages. Before the issuance of the 2020 notification, the CBM had announced that anyone engaging in digital currency transactions did so at their own risk, but no enforcement measures were being taken at the time. However, after the 2020 notification was issued, the CBM has pursued legal action against persons involved in illegal currency conversion and unauthorized hundi money transfers using Tether (USDT). These enforcement measures have included shutting down bank accounts and initiating legal proceedings under the Anti-Money Laundering Law and the Financial Institutions Law.

A bank guarantee or bond is a powerful tool that provides contractual parties with security and assurance. Bank guarantees are commitments made by a bank (as a guarantor) on behalf of a customer (as an obligor) to a beneficiary to ensure that certain contractual obligations will be fulfilled. If the customer fails to comply with these obligations, the bank can compensate the beneficiary up to the amount specified in the bank guarantee. Bank guarantees are widely used in Thailand as a form of security and are common in construction agreements and government procurement contracts, among others. If the beneficiary (e.g., a project owner) concludes that the counterparty in the agreement (e.g., a contractor) has breached the underlying contract in some way, the beneficiary will demand payment from the bank pursuant to the guarantee. Collecting on a Guarantee and Preventing Payment In the context of construction and procurement agreements, there are two types of bank guarantees—conditional and unconditional. A conditional bank guarantee means that the project owner must satisfy certain agreed-upon conditions (e.g., provision of proof of the breach, proof of damages, or even consent from the contractor) to demand payment. An unconditional bank guarantee means that the bank must compensate the project owner for the demanded amount (up to the limit specified in the bank guarantee) without any conditions. When a project owner concludes that a contractor has breached the underlying contract (often for nonperformance or failure to comply with a representation or warranty), the project owner will demand payment from the bank holding the guarantee. Upon receiving such a demand, Thai banks will usually inform the contractor and ask if it has any objections. Even if the bank guarantee is unconditional, in practice, a bank may be reluctant to make payment if the contractor, as the bank’s customer,