Financial measures, Investments

Prohibitions related to investment and financial services and markets: • The Regulations impose sectoral sanctions, by restricting certain investment and financial services activities and access to markets. • Some of these restrictions relate to dealings with credit or financial institutions domiciled in the DPRK, their branches and subsidiaries (wherever located) and other credit or financial institutions not domiciled in the DPRK but owned or controlled by persons domiciled there (DPRK-connected credit or financial institutions). • The Regulations, for example, impose restrictions on UK credit or financial institutions establishing a banking or correspondent banking relationship with DPRK-connected credit or financial institutions, or on opening representative offices or establishing branches or subsidiaries in the DPRK. UK credit or financial institutions must also sever existing financial relationships with DPRK-connected credit or financial institutions, such as terminating joint ventures and relinquishing ownership interests. Nor can a UK credit or financial institution open a bank account for DPRK diplomatic missions or a DPRK diplomat. • There are restrictions relating to branches, subsidiaries and representative offices of DPRK-connected credit or financial institutions, such as on the opening of representative offices or branches in the UK. It is also prohibited for DPRK-connected credit or financial institutions to acquire or extend any ownership interests in UK credit or financial institutions and prohibited for any person to participate in joint ventures and other business arrangements with a designated person. • The Regulations also impose sectoral restrictions prohibiting persons from accepting or approving investments in commercial activities where the investment is made by the Government of the DPRK, DPRK nationals and companies and others acting on their behalf or owned or controlled by such persons. These sectoral restrictions also include accepting or approving investments and prohibitions on the provision of financial services with and making funds available to such persons (with the exception of DPRK nationals), joint ventures and ownership interests with such persons. It is also prohibited for any person to transfer any funds to, or receive funds from, the DPRK. • Any sale or purchase of certain bonds must not be made to or from the DPRK Government, Central Bank or DPRK-connected credit or financial institutions. Nor must any person provide brokering, advertising or other services which assist the DPRK Government and other bodies to issue such bonds. • There is a prohibition on the leasing to, or otherwise making available of any land to, the Government of DPRK, any member of the Government of DPRK, or anyone that is known or suspected of acting on behalf of the Government of DPRK, or leasing any land from such a person. • Insurance or reinsurance in relation to ships is prohibited, where that ship is owned, controlled or operated by a person connected with the DPRK, if it is registered with the DPRK, flying the flag of DPRK or is a “specified” ship under regulation 11(1) or (2).

UK

The Democratic People's Republic of Korea (Sanctions) (EU Exit) Regulations 2019

UN, UK country specific

Democratic People's Republic of Korea

The Democratic People’s Republic of Korea (Sanctions) (EU Exit) Regulations 2019 came fully into force on 31 December 2020. They are intended to ensure that certain sanctions measures relating to the Democratic People’s Republic of Korea continue to operate effectively. You should also review the Sanctions (EU Exit)(Miscellaneous Amendments) Regulations 2019, the Sanctions (EU Exit) (Miscellaneous Amendments) Regulations 2020 and the Sanctions (EU Exit) (Miscellaneous Amendments) (No. 3) Regulations 2020 to find out any amendments made to the Regulations. This sanctions regime gives effect to the UK’s obligations under United Nations Security Council Resolutions 1718 (2006), 1874 (2009), 2087 (2013), 2094 (2013), 2270 (2016), 2321 (2016), 2356 (2017), 2371 (2017), 2375 (2017), and 2397 (2017). It aims to restrict the ability of the DPRK to carry on banned programmes, promoting the abandonment by the DPRK of banned programmes and the decommissioning of the DPRK’s banned weapons. It also aims to promote peace, security and stability on the Korean peninsula. These regulations have replaced, with substantially the same effect, relevant existing EU legislation and related UK regulations.

Licencing, exception and direction provisions are contained in Part 9 of the Regulations.