The Democratic People’s Republic of Korea (Sanctions) (Overseas Territories) (Amendment) Order 2016

Amendment of the principal Order

8.  For articles 10C to 10F, substitute—

“North Korean credit and financial institutions: branches, subsidiaries, and representative offices

10C.— (1) A credit or financial institution (“P”) commits an offence if P—

(a) opens a new bank account with;

(b) establishes a new correspondent banking relationship with;

(c) establishes a new joint venture with; or

(d) takes an ownership interest in,

a person who P knows or has reasonable cause to suspect falls within article 10A(4).

(2) A credit or financial institution (“P”) commits an offence if P—

(a) opens a new representative office in North Korea; or

(b) establishes a new branch or subsidiary in North Korea.

Acquisition or extension of ownership interest

10D.   A credit or financial institution (“P”) commits an offence if P allows a person falling within article 10A(4) to acquire or extend a participation, or acquire any other ownership interest, in P.

Severance of existing financial relationships

10E.— (1) A credit or financial institution (“P”) commits an offence if, by 24th June 2016, P fails to—

(a) terminate any joint venture with;

(b) relinquish any ownership interest in; or

(c) terminate any correspondent banking relationship with,

a person who P knows or has reasonable cause to suspect falls within article 10(A)(4).

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

(a) close any bank account with a person falling within article 10(A)(4); or

(b) close any branch, subsidiary, or representative office in North Korea.

(3) The Governor may make a direction under paragraph (2) only if the Governor is 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 North Korea; or

(b) any activities prohibited under this Order.

(4) A credit or financial institution must inform the Governor as soon as practicable if it suspects that any account, branch, subsidiary or representative office described in paragraph (2)(a) or (b) might contribute to any of the activities mentioned in paragraph (3).

(5) It is an offence for a credit or financial institution to knowingly fail to comply with paragraph (4).

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

(a) published in any form the Governor considers appropriate, including by means of a website;

(b) sent by the Governor to one or more credit or financial institutions affected by the direction; or

(c) sent by the Governor to one or more other persons affected by the direction.

(7) A credit or financial institution (“P”) commits an offence if P knowingly fails to comply with any direction of the Governor made under paragraph (2).

(8) Anything done by a credit or financial institution in accordance with this article is not to be treated as a breach of any restriction imposed by statute or otherwise.

Business directly or indirectly with designated persons

10F.   A credit or financial institution (“P”) commits an offence if P knowingly participates in any business arrangements, including joint ventures, with—

(a) a designated person; or

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

Financial support for trade

10G.   A credit or financial institution (“P”) commits an offence if P knowingly provides financial support for trade which may contribute to—

(a) the nuclear-related, other weapons of mass destructions-related, or ballistic missile-related programmes of North Korea; or

(b) any activities prohibited under this Order.

Offences related to the movement of North Korean banknotes or coins

10H.   A person (“P”) commits an offence if P knowingly sells, supplies, transfers or exports (directly or indirectly) new North Korea denominated banknotes or coinage printed or minted in the Territory to the Central Bank of North Korea.

Offences related to the movement of gold, precious metals or diamonds listed in Annex VII to the Council Regulation

10I.— (1) A person (“P”) commits an offence if P knowingly—

(a) sells, supplies, transfers or exports (directly or indirectly) gold, precious metals or diamonds listed in Annex VII to the Council Regulation to a person falling within paragraph (2);

(b) purchases, imports or transports (directly or indirectly) gold, precious metals or diamonds listed in Annex VII to the Council Regulation, regardless of whether the goods originated in North Korea, from a person falling within paragraph (2); or

(c) provides (directly or indirectly) technical assistance or brokering services, financing or financial assistance, related to gold, precious metals or diamonds listed in Annex VII to the Council Regulation to a person falling within paragraph (2).

(2) The following persons fall within this paragraph—

(a) the Government of North Korea, its public bodies, corporations and agencies;

(b) the Central Bank of North Korea; and

(c) any person acting on behalf or at the direction of, or any legal person owned or controlled by a person falling within sub-paragraph (a) or (b).

Offences related to the provision of access to ports

10J.— (1) It is an offence for a person (“P”) to provide access to ports in the Territory to any vessel that P knows or has reasonable cause to suspect—

(a) is owned or controlled directly or indirectly by a person listed in Annex IV to the Council Regulation;

(b) contains restricted goods, luxury goods, aviation fuel, gold and ores, coal, iron and iron ore, or any other goods prohibited under this Order;

(c) has refused to be inspected after such inspection has been authorised by the vessel’s flag State or state of registration;

(d) is flying the flag of North Korea; or

(e) is a stateless vessel which has refused to be inspected.

(2) Paragraph (1) does not apply if—

(a) access to a port is needed by the vessel in a case of emergency or for humanitarian purposes;

(b) the vessel is coming into port for inspection; or

(c) the vessel is returning to its port of origin.

Offences related to the leasing, chartering or provision of crew services

10K.— (1) A person (commits an offence if P leases or charters a vessel or aircraft, or provides crew services, with knowledge or reasonable cause to suspect that the lease, charter or provision of crew services is to—

(a) North Korea;

(b) a person listed in Annex IV to the Council Regulation; or

(c) any person acting on behalf of, or at the direction of, North Korea or a person listed in Annex IV to the Council Regulation.

(2) A person (“P”) commits an offence if P owns, leases, insures, operates, or provides vessel classification services or associated services to a vessel which P knows or has reasonable cause to suspect is flagged to North Korea.

(3) A person (“P”) commits an offence if P registers or maintains on a register a vessel which P knows or has reasonable cause to suspect is owned, operated or crewed by North Korea or North Korean nationals or which has been de-registered by another State pursuant to paragraph 19 of United Nations Security Council resolution 2270 of 2nd March 2016(1).

(4) Paragraph (1) is subject to articles 11 and 12.”.

(1)

S/RES/2270 (2016).