Korea, Democratic People’s Republic of: Banking Regulations Tightened to Prevent Fraud

Amendments Aimed at Maintaining Financial Stability

In a move aimed at preventing fraud and maintaining financial stability in the Korea, Democratic People’s Republic of, the government has amended its banking regulations. The latest updates come into effect following an announcement by the United Nations Security Council on March 7, 2024.

Affecting Sanctions Regulations

The amendments affect the Democratic People’’s Republic of Korea (Sanctions) (EU Exit) Regulations 2019, which were implemented to freeze funds and economic resources of individuals, entities, or bodies involved in North Korea’s military programs. The regulations have been applied to the Isle of Man through the Democratic People’s Republic of Korea Sanctions (Application) Regulations 2020.

Key Changes

• One entry has been amended and remains subject to an asset freeze.
• The Ministry of the People’’s Armed Forces (MPAF), also known as the Ministry of National Defense, is now listed on the United Nations Security Council sanctions list.

Responsibilities and Compliance

Financial institutions and individuals are required to:

• Check if they maintain any accounts or hold funds for designated individuals.
• Freeze such accounts and refrain from dealing with those funds unless licensed by the Treasury.
• Failure to comply with financial and trade sanctions legislation can result in criminal penalties.

Resources for Further Information

• The Foreign, Commonwealth and Development Office has updated the Consolidated List, which provides details of individuals designated under sanctions legislation.
• Further information on UN measures related to North Korea can be found on the relevant UN Sanctions Committee webpage.
• The Isle of Man Government website also provides further details on the sanctions regime related to North Korea and links to other financial sanctions regimes.