After the Democratic People’s Republic of Korea (“DPRK“) carried out its fifth nuclear test last Friday 12th September, some press reports indicated that the United Nations Security Council (“UNSC“) had agreed to impose new sanctions on the nation. The DPRK has been hit by five sets of UNSC sanctions since it first tested a nuclear device in 2006, most recently on 2nd March 2016 (see our related blog post here).
On July 6, 2016, the US Treasury Department’s Office of Foreign Assets Control (“OFAC”) announced that it had added 16 new North Korean parties, including 11 individuals and 5 entities, to the Specially Designated Nationals and Blocked Persons List (“SDN List”). The Treasury Department has issued a press release related to the designations. The new SDNs include North Korea leader Kim Jong Un, other top officials of the North Korean regime, and certain North Korean government entities. The parties were designated as Specially Designated Nationals (“SDNs”) pursuant to Executive Orders 13722 and 13687 for their ties to human rights abuses in North Korea.
On June 3, 2016, the US Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) issued a notice of proposed rulemaking proposing the imposition of additional restrictions on North Korean banks and other financial institutions. The notice follows the June 2, 2016 publication of a FinCEN finding that North Korea is a jurisdiction of primary money laundering concern under Section 311 of the USA PATRIOT Act, 31 U.S.C. 5318A.
On 16 March 2016, President Barack Obama issued a new Executive Order (the “Order”) imposing additional sanctions on the Democratic People’s Republic of Korea (“North Korea”). As a result of these new sanctions, US Persons (defined below) are prohibited from engaging in virtually all transactions with North Korea. Additionally, pursuant to the Order, the US Treasury Department’s Office of Foreign Assets Control (“OFAC”) announced that it had designated 2 individuals, 15 entities, and 20 vessels as Specially Designated Nationals (“SDNs”). OFAC also issued nine general licenses for certain activities involving North Korea and published frequently asked questions (“FAQs”) pertaining to the Order and general licenses.