Financial Institutions in South Korea Face Compliance Challenges Amid Updates to Sanctions List
Seoul, April 16 - Financial institutions in South Korea are bracing themselves for compliance challenges as the United Nations Security Council updated its sanctions list on Tuesday, imposing fresh restrictions on North Korean entities.
The Updated Sanctions List
The updated list includes the National Aerospace Technology Administration (NADA), which has been involved in Pyongyang’s development of space science and technology, including satellite launches and carrier rockets. NADA was first designated under UN sanctions in 2016.
Compliance Requirements for Financial Institutions
Financial institutions are required to:
- Check whether they maintain any accounts or hold funds for NADA
- Provide financial services to the designated individual
- Freeze such accounts or other funds if necessary, unless licensed by the Treasury
- Refrain from dealing with them unless licensed by the Treasury
Consequences of Non-Compliance
Failure to comply with financial and trade sanctions legislation is a criminal offense in South Korea. The country’s foreign ministry has updated its Consolidated List, which provides details of those designated under sanctions legislation.
Heightened Tensions between North and South Korea
The updates come amid heightened tensions between North and South Korea following recent missile tests by Pyongyang. Financial institutions are advised to:
- Review their current transactions
- Report any findings to the Financial Intelligence Unit (FIU)
Additional Resources
For further information on the UN measures in respect of Democratic People’s Republic of Korea, as well as details of the sanctions regime related to North Korea, please visit the Isle of Man Government website.
Urgent Action Required
Financial institutions in South Korea are urged to take immediate action to ensure compliance with the updated sanctions list. Failure to do so could result in severe consequences, including criminal charges and fines.