Advisory Warning No. 2 of 2017 - The Democratic People's Republic of Korea (Sanctions) (Overseas Territories) (Amendment) Order 2016 (5 April 2017)

Summary

This is an advisory notice from the BVI Financial Services Commission alerting the public and industry that The Democratic People's Republic of Korea (Sanctions) (Overseas Territories) (Amendment) Order 2016 has been extended to the British Virgin Islands. The Order amends the 2012 Principal Order and implements additional UN Security Council sanctions (Resolution 2270 of 2016) against North Korea, as reflected in EU Council Regulation (EC) 329/2007.

• Asset freezing: Imposes additional asset freezing measures on funds and economic resources of the Government of North Korea and the Korean Worker's Party, with a licensing mechanism for permitted dealings in specified circumstances.
• Financial institution restrictions: Adds financial sanctions measures on North Korean and UK credit and financial institutions, including requirements to terminate relationships with North Korean institutions and prevent new economic activity in North Korea.
• Trade finance prohibition: Prohibits financial support for trade that could assist nuclear, other weapons of mass destruction, or ballistic missile related programmes, or other prohibited activities under the Council Regulation.
• Sectoral export/import bans: Introduces new prohibitions on export of coal, minerals, iron ore, gold and other metals, and an import ban on aviation fuel.
• Cargo and vessel/aircraft restrictions: Broadens cargo inspection requirements for goods to or from North Korea and prohibits chartering of vessels and aircraft to North Korea and listed persons.

The notice provides links to the underlying UN resolution, EU regulation and the UK statutory instrument for reference, but does not itself create new filing or reporting obligations beyond compliance with the sanctions regime it describes.

Key obligations

• Terminate existing financial relationships with North Korean credit and financial institutions
• Prevent new economic activity involving North Korea
• Refrain from providing financial support for trade linked to nuclear, WMD or ballistic missile related programmes or other prohibited activities
• Comply with asset freezing measures on funds and economic resources of the Government of North Korea and the Korean Worker's Party, obtaining a licence where dealing with such assets is required
• Comply with new export bans on coal, minerals, iron ore, gold and other metals, and the import ban on aviation fuel
• Comply with expanded cargo inspection and vessel/aircraft chartering prohibitions relating to North Korea

Applies to

credit institutions, financial institutions, regulated entities engaged in financial services business

Deadlines

• 10 June 2016: Date on which the Amendment Order 2016 was ratified and extended to the Territory