Financial Crime Prevention Measures Strengthened in Democratic People’s Republic of Korea

Introduction

The Democratic People’s Republic of Korea has taken a significant step towards preventing financial crimes by amending its sanctions list. The latest update was made on March 7, 2024, by the United Nations Security Council.

Amendments to Sanctions List

The MINISTRY OF THE PEOPLE’S ARMED FORCES (MPAF) is now subject to an asset freeze. This entity manages the general administrative and logistical needs of the Korean People’s Army and was previously listed on December 22, 2017.

Purpose of Amendment

The amendment comes under the Democratic People’s Republic of Korea (Sanctions) (EU Exit) Regulations 2019, which provide for the freezing of funds and economic resources of certain persons, entities or bodies involved in the facilitation of any of the Democratic People’s Republic of Korea’s military programmes. The regulations have effect in the Isle of Man by the Democratic People’s Republic of Korea Sanctions (Application) Regulations 2020.

Obligations for Financial Institutions

Financial institutions and other persons are required to check whether they maintain any accounts or otherwise hold funds or economic resources for, or provide financial services to, designated individuals. If so, they must:

Freeze such accounts or other funds
Not deal with those funds or economic resources unless licensed by the Treasury

Consequences of Non-Compliance

Failure to comply with financial and trade sanctions legislation or attempting to circumvent its provisions is a criminal offence.

Exemptions

Those who have already reported details of frozen accounts are exempt from reporting again.

Additional Resources

For more information on UN measures in respect of Democratic People’s Republic of Korea, visit the relevant UN Sanctions Committee webpage.