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UN Imposed Sanctions

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The US Departments of State, Treasury, and Homeland Security warned companies in a new advisory that deceptive practices by North Korea to evade US, UN, and other sanctions could put them at risk of prohibited or sanctionable dealings with the North Korean regime.  The advisory published on July 24, 2018 follows February 2018 guidance from the US Treasury Department’s Office of Foreign Assets Control regarding certain deceptive shipping practices of North Korea to avoid US sanctions (see our prior blog post here).  The new advisory encourages companies to undertake enhanced due diligence within their supply chains to avoid prohibited or sanctionable: (i) sourcing of goods, services, or technology from North Korea and (ii) use of the labor of North Korean citizens or nationals, which is presumed to be forced labor, regardless of where such labor occurs.

Today, taking effect at 6pm CET, the Swiss Federal Council further tightened sanctions against the Democratic People’s Republic of Korea (North Korea), implementing UN Security Council Resolutions 2371 (2017) and 2375 (2017). As a consequence of the North Korean rocket tests on 3 and 28 July and the nuclear test on 2 September this year, in contravention of all previous UN Security Council Resolutions, on 5 August 2017 the UN Security Council issued Resolution 2371 (2017), closely followed by Resolution 2375 on 11 September 2017, tightening considerably the sanctions already imposed on North Korea. The resolutions include additional sanctions on the trade in goods, on the financial sector and on work permits. The Swiss Federal Council’s decree of today, 18 October 2017, implements these measures, which are binding under international law, by amending the Swiss Ordinance on Measures against the Democratic People’s Republic of Korea of 18 May 2016. Work permits may no longer be issued to citizens of North Korea, with the exception of permits issued under employment contracts concluded before 11 September 2017. In the financial sector, joint ventures and cooperatives, both ongoing and new, with North Korean individuals or companies are no longer permitted. Existing joint ventures and cooperatives must be discontinued by 9 January 2018 at the latest.

In recent days, the European Union (“EU”) has implemented measures giving effect to United Nations Security Council (“UNSC”) resolutions targeting Libya’s oil sector. Additionally, the UNSC has recently sanctioned one further entity. On 4 August 2017, the European Union adopted: Council Regulation (EU) 2017/1419 of 4 August 2017 amending Regulation (EU) 2016/44 (see here) and Council Decision (CFSP) 2017/1427 of 4 August 2017 amending Decision (CFSP) 2015/1333 (see here), which implement UNSC Resolution 2362 (2017)…