Financial Crime World

EU Imposes Strict Sanctions Against North Korea

In a bid to curb North Korea’s nuclear and ballistic missile programs, the European Union has introduced a package of sanctions aimed at limiting the country’s access to financial institutions, credit facilities, and luxury goods.

Financial Restrictions

  • EU-based banks and financial institutions are prohibited from opening new accounts or establishing correspondent banking relationships with counterparties in North Korea. Existing agreements must be terminated by June 2017.
  • The sale of public bonds guaranteed by the North Korean government is banned, as well as the purchase of newly printed banknotes and coins.

Luxury Goods Ban

  • The direct or indirect transfer of luxury goods to or from North Korea is outlawed, including:
    • Yachts
    • Private planes
    • High-end electronics

Investment Prohibitions

  • Investments in commercial activities in North Korea are prohibited.
  • Joint ventures with companies involved in nuclear, ballistic missile, or other weapons of mass destruction programs are also banned.

Financial Assistance and Services

  • The provision of financial assistance or services to support activities related to nuclear, ballistic missile, or other weapons of mass destruction programs is prohibited.

Travel Restrictions

  • Travel restrictions have been imposed on individuals deemed to be involved in activities that are subject to the sanctions.
  • This includes diplomats and officials who have been designated by the UN or EU as being connected to North Korea’s prohibited activities.

Freezing of Assets

  • The assets of certain individuals and entities listed on the EU’s own sanctions list, which includes those associated with North Korea’s nuclear and ballistic missile programs, are frozen.
  • The making available of funds or economic resources to these designated persons or entities is also prohibited.

Enhanced Vigilance

  • EU Member States are required to exercise enhanced vigilance over North Korean diplomatic personnel to prevent them from contributing to the country’s prohibited activities.

Competent Authorities

  • The Swedish Migration Agency and Sweden’s missions abroad are responsible for applying travel restrictions.
  • The Inspectorate of Strategic Products has primary responsibility for matters concerning the arms embargo and associated ban on services.
  • The National Board of Trade may grant exemptions from the prohibition on luxury goods.

These measures aim to put pressure on North Korea to abandon its nuclear and ballistic missile programs in line with UN Security Council resolutions and EU decisions.