North Korea

Information as of: 20th October 2017

Latest Updates

 UN S/Res/2371 (2017) allows the Committee to designate vessels it deems to involved in activities prohibited by exisiting resolutions, which shall be prohibited entry into ports of member states (with certain exemptions). It also prohibits North Korean export of Iron/Iron Ore (with the exception of coal transported through North Korea soley for export from the Port of Rajin (Rason)), seafood and lead/lead ore. There is a ban on the opening or expansion of joint ventures with North Korean entities or persons within member state territories or by member state nationals. It is clarfified that the prohibition of financial services that could contribute to North Korea's nuclear or ballistic missile programme apply to the clearing of funds through member states. It is further clarified that companies performing financial services commensurate with with those provided by banks are considered financial institutions for the purposes of existing resolutions. S/Res/2375 expands port prohibitions to include vessels transporting prohibited items from the DPRK and prohibits member state nationals from engaging in ship-to-ship transfers with DPRK flagged vessels. The transfer and indirect transfer of condensates, natural gas liquids, textiles, refined petroleum products (exceptions up to certain limits - 500,000 barrels until year end 2017 and 2,000,000 per year from 1 Jan 2018 -  per member state apply) to the DPRK is prohibited. Joint ventures are prohibited unless agreed on a case by case basis. There is an expansion of the list of designated entities, which is also updated periodically. Effective from 10 Oct 2017 the UN have banned four ships from visiting any global port for violation of the North Korean sanctions. The four ships are named as Petrel 8, Hao Fan 6, Tong San 2 and Jie Shun.
 US EO 13810 imposes numerous sanctions focused on marine activity.
 EU/UK

Council Reg 2017/1509 30 Aug 2017 consolidates all existing sanctions measures and repeals and replaces 329/2007 and all subsequent amendments, in addition to giving effect to UN S/Res/2371. (CFSP) 2016/849 amended  14 Sept 2017 by (CFSP) 2017/1562 which implements UN sanctions regarding restrictions on the import of certain goods and work authorisations. EU transposed measures in UN S/Res/237 via (CFSP) 2017/1838. Reg 2017/1858 further expands the ban on EU investment in and with the DPRK to all sectors and lowers the amount of personal remittances that could be sent to the DPRK from EUR 15 000 to EUR 5 000, and imposes an oil export ban to the DPRK.

 

                                                                                                                                                                                                             

Financial/Other Sanctions

UN S/Res/1718 (Oct 2006). Updated by S/Res/2094 (2013) and S/Res/2321 (2016). Updated by S/Res/2371 (2017) and S/Res/2375.
US EO 13466 (2008), EO 13551 (Aug 2010) and EO 13570 (Apr 2011).
EU/UK

2006/795/CFSP. Repealed and replaced by 2010/800/CFSP. Amended by 2013/88/CFSP (Feb 2013). Repealed and replaced by 2013/183/CFSP (Apr 2013). Amended by (CFSP) 2016/476. Repealed and replaced by (CFSP) 2016/849. Amended by (CFSP) 2017/666. Reg 329/2007. Amended by Reg 1283/2009 & Reg 296/2013 & Reg 696/2013 & Reg 2015/1062 & Reg 2016/465 & Reg 2016/659 & Reg 2016/841 & Reg 2016/1333 & Reg 2017/330. 30 Aug 2017 Reg 2017/1509 consolidates all sanctions and repeals and replaces 329/2007 and all subsequent amendmnets. Amended by (CFSP) 2017/1838.

 

                                                                                                                                                                                                             

Arms Embargo

UN SCR 1718 (Oct 2006). Updated by S/Res/2094 (2013). Updated by S/Res/2371 (2017)
US EO 13466 (2008), EO 13551 (Aug 2010) and EO 13570 (Apr 2011).
EU/UK

2006/795/CFSP. Repealed and replaced by 2010/800/CFSP. Amended by 2013/88/CFSP (Feb 2013). Repealed and replaced by 2013/183/CFSP (Apr 2013). Amended by (CFSP) 2016/476. Repealed and replaced by (CFSP) 2016/849. Amended by (CFSP) 2017/666. Amended by (CFSP) 2017/1562. Amended by Reg 2017/1858. 

 

                                                                                                                                                                                                             

Further Details

UN S/Res/1718 (Oct 2006), reiterated by S/Res/1874 (Jun 2009), freezes financial assets of persons designated as engaged in supporting nuclear & WMD-related programmes. Prevents supply of conventional arms & all items which could contribute to WMD programmes. S/Res/1874 extends prescriptions to arms & financial transactions / services related to provision of arms or for WMD programme. UN Member States also required to inspect all air / sea cargo in their territory travelling to or from North Korea. S/Res/2094 (March 2013) extends financial sanctions to include provision of financial services, including insurance, that could contribute to DPRK illicit activity, supporting nuclear & WMD-related programmes, imposes certain travel restrictions & bans export to DPRK of luxury items. Individuals and Entities added to SDN list, Aug 2015. WEF 2 Mar 2016, S/Res/2270 (2016) extends ban to any item that could contribute to the capabilities of the armed forces, contribute to DPRK's nuclear, ballistic or WMD capabilities. Bans the teaching of DPRK nationals any disciplines that could contribute to nuclear activities or weapons delivery systems. Prohibits the lease or charter of any Member State flagged vessel or aircraft. Requires Member States to deny permission to entry to any aircraft or vessel if believe contain prohibited items. Prohibits import or export to or from DPRK of coal, iron, iron ore, gold, titanium ore, vanadium ore and rare earth minerals. Prevents the sale of aviation fuel and / or the use of Member States vessels or aircraft to transport to DPRK any aviation fuel. Asset freeze extended to all funds owned or controlled by the DPRK Government or the Workers Part of Korea. Prohibition on opening new branches, subsidiaries, or representative offices of North Korean banks in Member States, and a requirement that Member States expel North Korean diplomats who are engaging in certain illicit activities. S/Res/2321, wef: 30 Nov 2016 adds further goods, items and materials to the banned list including copper, nickel, silver, zinc, statues, rugs and tapastries; requirement to de-register any vessels owned, controlled or operated by DPRK; prohibition on the provision of insurance or reinsurance services to vessels owned, controlled or operated by the DPRK. Prohibition on the procurement of vessel and aircraft crewing services from the DPRK and requirement to limit the number of bank accounts in respect of diplomatic missions and staff. S/Res/2371 (2017) allows the Committee to designate vessels it deems to involved in activities prohibited by exisiting resolutions, which shall be prohibited entry into ports of member states (with certain exemptions). It also prohibits North Korean export of Iron/Iron Ore (with the exception of coal transported through North Korea soley for export from the Port of Rajin (Rason)), seafood and lead/lead ore. There is a ban on the opening or expansion of joint ventures with North Korean entities or persons within member state territories or by member state nationals. It is clarfified that the prohibition of financial services that could contribute to North Korea's nuclear or ballistic missile programme apply to the clearing of funds through member states. It is further clarified that companies performing financial services commensurate with with those provided by banks are considered financial institutions for the purposes of existing resolutions. S/Res/2375 expands port prohibitions to include vessels transporting prohibited items from the DPRK and prohibits member state nationals from engaging in ship-to-ship transfers with DPRK flagged vessels. The transfer and indirect transfer of condensates, natural gas liquids, textiles, refined petroleum products (exceptions up to certain limits - 500,000 barrels until year end 2017 and 2,000,000 per year from 1 Jan 2018 -  per member state apply) to the DPRK is prohibited. Joint ventures are prohibited unless agreed on a case by case basis. Effective from 10 Oct 2017 the UN have banned four ships from visiting any global port for violation of the North Korean sanctions. The four ships are named as Petrel 8, Hao Fan 6, Tong San 2 and Jie Shun. There is an expansion of the list of designated entities, which is also updated periodically.
US EO 13466 (Jun 2008) & EO 13551 (Aug 2010) block any transaction involving property in North Korea or belonging to a North Korean national. Assets freeze on designated entities from 30 Aug 2010 - following attack on South Korean ship (Mar 2010) & nuclear device tests & missile launches (2009). Prohibition of importation of goods, services or technology from North Korea (EO 13570). 18 Feb 2016 new Act signed into US law extending the ban on exporting goods to North Korea, broadening the scope of asset blocking rules to apply to any entity controlled or acting on behalf of a blocked person (previously only applied to 50% or more owned). Also significantly extends the secondary sanctions to any person, US or otherwise. 16 Mar 2016, EO 13722 implements measures in UN S/Res/2270 (2016). SDN List updated Dec 2016 to include Air Koryo, Korea National Insurance Corporation, several banks and 16 aircraft. 20 Dec 2016 amended General License 1-A to no longer authorise  U.S. financial institutions to open and operate accounts for the diplomatic mission of North Korea and its employees and their families. EO 13810 (1) establishes new designation critera, (2) prohibits vessels and aircraft that have called or landed at a port or place in North Korea in the previous 180 days, and vessels that engaged in a ship-to-ship transfer with such a vessel in the previous 180 days, from entering the United States, (3) provides authority to block any funds transiting accounts linked to North Korea that come within the United States or possession of a United States person; and (4) provides authority to impose sanctions on a foreign financial institution that knowingly conducted or facilitated, on or after the date of the order (i) any significant transaction on behalf of certain blocked persons or (ii) any significant transaction in connection with trade with North Korea.  The sanctions applicable to foreign financial institutions can be restrictions on correspondent or payable-through accounts or full blocking sanctions. OFAC's General Licence 10 allows  exemptions to the above for vessels in emergency.SDN list updated periodically.
EU/UK

2006/795/CFSP (Nov 2006) implements UN sanctions includes an asset freeze, arms embargo and export ban on luxury goods. Repealed and replaced by 2010/800/CFSP. EU 2013/88/CFSP (Feb 2013) extends scope of the embargo on certain goods & technology that could be used to support nuclear & WMD-related programmes, extends ban on provision of certain services & ban on trade in gold, precious metals & diamonds, list of entities also updated. Repealed and replaced by 2013/183/CFSP (April 2013) & extends travel restrictions, bans certain types of aluminium, ban on financial services, including (re)insurance in connection with sale, supply, transfer or export, the provision of related services to any person, entity or body in, or for use in DPRK. Prohibition on satisfying claims with regards to any contract or transaction affected directly or indirectly by UN Resolutions. Amended by (CFSP) 2016/476 (Mar 2016) implements measures in UN S/Res/2270 (2016). 2013/183/CFSP repealed and replaced by (CFSP) 2016/849 which implemented UN S/Res/2270. Amended 6 Apr 2017 by (CFSP) 2017/666 which expands the prohibition on the participation and investment in to further sectors including conventional arms-related industry, metallurgy and metalworking, and aerospace.  Amended 14 Sept 2017 by (CFSP) 2017/1562 which implements UN sanctions regarding restrictions on the import of certain goods and work authorisations. Also prohibits the provision of services incidental to manufacturing in the chemical, mining and refining industries and also the provision of computer and related services.  Reg 2017/1858 further expands the ban on EU investment in and with the DPRK to all sectors and lowers the amount of personal remittances that could be sent to the DPRK from EUR 15 000 to EUR 5 000, and imposes an oil export ban to the DPRK. Council Regulation 329/2007 (Mar 2007) introduces further restrictions on the export of goods, amended by Reg 1283/2009. Reg 296/2013 (Mar 2013) amends the scope of the import and export bans and clarifies that the financial restrictions include (re)insurance services. Reg 696/2013 (July 2013) extends ban to include intermediary services, further prohibitions on certain bank accounts, introduces prior information requirements on cargoes to & from DPRK, restrictions on access to EU ports, ban on provision to certain DPRK vessels of bunkering & ship supply services, restrictions on certain flights. Extends export ban to include titanium alloys, zirconium & alloys, explosive materials & certain machine tools. Reg 2015/1062 (July 2015) added Korea National Insurance Company and six of its senior executives to the list of designated entities and persons. Reg 2016/465 allows for certain payments to Korea National Insurance Company. Reg 841/2016 (27 May 2016) made further restrictions on petroleum, luxury goods, financial support and on North Korean vessels and aircraft operating within the EU. Reg 2016/1333 effective 4 Aug 2016 implements the list of additional goods added to the prohibited list published by the UN in S/Res/2270 (2016). Reg 2017/330 effective 1 Mar 2017, implements UN S/Res/2321 and prohibits new bank accounts held or controlled by North Korean diplomatic mission, consular post or their North Korean members and all existing bank accounts held or controlled by same must be closed by 11 Apr 2017 unless otherwise authorised. Council Reg 2017/1509 30 Aug 2017 consolidates all existing sanctions measures and repeals and replaces 329/2007 and all subsequent amendments, in addition to giving effect to UN S/Res/2371. EU to transpose measures in UN S/Res/2375. (CFSP) 2017/1838 transposes UN measures. SDN list updated periodically.

 

This information has been collated by the International Underwriting Association of London and is intended as a guide only. The IUA does not accept any liability for the accuracy of this information.
This publication is intended to convey only general information about sanctions legislation and associated insurance coverage. It is not, and is not intended to be, a complete statement of the law relating to this area. It should not be relied on or be used as a substitute for legal advice in relation to any particular set of circumstances. Accordingly, IUA does not accept any liability for any loss which may arise from reliance on this information.