The Democratic People's Republic of Korea (European Union Financial Sanctions) Regulations 2013

PART 3 U.K. Restrictions on Financial Services

Credit and financial institutions: accounts and correspondent banking relationships U.K.

10.— [F1 (1) A credit or financial institution must not—

(a) open a new bank account with,

(b) establish a new correspondent banking relationship with,

(c) establish a new joint venture with, or

(d) take an ownership interest in,

take an ownership interest in, a person falling within paragraph (2), if the credit or financial institution knows or has reasonable cause to suspect that the account, relationship or venture is with, or the ownership interest is in, a person falling within paragraph (2).]

(2) The following persons fall within this paragraph—

(a) a credit or financial institution domiciled in the Democratic People's Republic of Korea;

(b) a branch or subsidiary, wherever located, of a credit or financial institution domiciled in the Democratic People's Republic of Korea as listed in Annex VI of the Council Regulation;

(c) a credit or financial institution wherever located that is not domiciled in the Democratic People's Republic of Korea but is controlled by a person or entity domiciled in the Democratic People's Republic of Korea, as listed in Annex VI of the Council Regulation.

(3) A credit or financial institution must not—

(a) open a new representative office in the Democratic People's Republic of Korea, or

(b) establish a new branch or subsidiary in the Democratic People's Republic of Korea.

F2 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Reg. 10(1) substituted (13.5.2016) by The Democratic Peoples Republic of Korea (European Union Financial Sanctions) (Amendment) Regulations 2016 (S.I. 2016/578), regs. 1(1), 5

F2 Reg. 10(4) omitted (13.5.2016) by virtue of The Democratic Peoples Republic of Korea (European Union Financial Sanctions) (Amendment) Regulations 2016 (S.I. 2016/578), regs. 1(1), 6

Agreements U.K.

11.  A person (“P”) must not conclude an agreement for, or on behalf of, a person falling within regulation 10(2) which relates to the opening of a representative office or the establishment of a branch or subsidiary in the European Union, if P knows or has reasonable cause to suspect that the agreement is for, or on behalf of, such a person.

Acquisition or extension of ownership interest U.K.

12.  A person falling within regulation 10(2) must not acquire or extend a participation, or acquire any other ownership interest, in a credit or financial institution.

Sale or purchase of bonds U.K.

13.—(1) A person (“P”) must not sell or purchase public or public-guaranteed bonds issued after 19th February 2013, directly or indirectly, to or from a person, entity or body falling within paragraph (4) if P knows or has reasonable cause to suspect that the sale or purchase is to or from such a person, entity or body.

(2) A person (“P”) must not provide brokering services with respect to public or public-guaranteed bonds issued after 19th February 2013 to a person, entity or body falling within paragraph (4) if P knows or has reasonable cause to believe that the services are being provided to such a person, entity or body.

(3) A person (“P”) must not assist a person, entity or body falling within paragraph (4) to issue public or public-guaranteed bonds, by providing—

(a) brokering services,

(b) advertising, or

(c) any other service with respect to such bonds,

if P knows or has reasonable cause to suspect that P is assisting such a person, entity or body.

(4) The following persons, entities and bodies fall within this paragraph—

(a) the Democratic People's Republic of Korea and its Government, and its public bodies, corporations and agencies;

(b) the Central Bank of the Democratic People's Republic of Korea;

(c) a credit or financial institution domiciled in the Democratic People's Republic of Korea or any credit or financial institution referred to in regulation 10(2);

(d) a person, entity or body acting on behalf of or at the direction of a legal person, entity or body falling within sub-paragraphs (a) or (b);

(e) a legal person, entity or body owned or controlled by a person, entity or body falling within sub-paragraphs (a) to (c).

[F3 DPRK credit and financial institutions: branches, subsidiaries, and representative offices U.K.

13A.   A person falling within regulation 10(2) must not open—

(a) a branch;

(b) a subsidiary; or

(c) a representative office;

within the United Kingdom.

Textual Amendments

F3 Regs. 13A-13D inserted (13.5.2016) by The Democratic Peoples Republic of Korea (European Union Financial Sanctions) (Amendment) Regulations 2016 (S.I. 2016/578), regs. 1(1), 7

Severance of existing financial relationships U.K.

13B.— (1) A credit or financial institution must, by 31st May 2016—

(a) terminate any joint venture with;

(b) relinquish any ownership interest in; and

(c) terminate any correspondent banking relationship with;

a person falling within regulation 10(2).

(2) The Treasury may direct that a credit or financial institution must—

(a) close any bank account with a person falling within regulation 10(2); or

(b) close any branch, subsidiary, or representative office in the Democratic People’s Republic of Korea.

(3) The Treasury may make a direction under paragraph (2) only if they are satisfied that any such account, branch, subsidiary, or representative office could contribute to—

(a) the nuclear-related, other weapons of mass destructions-related, or ballistic missile-related programmes of the Democratic People’s Republic of Korea;

(b) other activities prohibited under the Council Regulation;

(c) other activities prohibited under Council Decision 2013/183/CSFP; or

(d) the circumvention of prohibitions that apply in relation to such activities.

(4) A credit or financial institution must inform the Treasury if it suspects that any such account, branch, subsidiary or representative office might contribute to any of the activities listed in paragraph (3).

(5) Any direction made under paragraph (2) must be—

(a) published by the Treasury on their website;

(b) sent by the Treasury to one or more credit and financial institutions; or

(c) sent by the Treasury to one or more other persons.

Textual Amendments

F3 Regs. 13A-13D inserted (13.5.2016) by The Democratic Peoples Republic of Korea (European Union Financial Sanctions) (Amendment) Regulations 2016 (S.I. 2016/578), regs. 1(1), 7

Business directly or indirectly with designated persons U.K.

13C.   A credit or financial institution must not participate in any business arrangements, including joint ventures, with—

(a) any person listed in Annex IV of the Council Regulation; or

(b) any other person acting on behalf or at the direction of such a person.

Textual Amendments

F3 Regs. 13A-13D inserted (13.5.2016) by The Democratic Peoples Republic of Korea (European Union Financial Sanctions) (Amendment) Regulations 2016 (S.I. 2016/578), regs. 1(1), 7

Financial support for trade U.K.

13D.   A credit or financial institution may not provide any financial support for trade which may contribute to—

(a) nuclear-related programmes;

(b) other weapons of mass destructions-related programmes;

(c) ballistic missile-related programmes; or

(d) other activities prohibited by the Council Regulation.]

Textual Amendments

F3 Regs. 13A-13D inserted (13.5.2016) by The Democratic Peoples Republic of Korea (European Union Financial Sanctions) (Amendment) Regulations 2016 (S.I. 2016/578), regs. 1(1), 7