Financial Crime World

Isle of Man Introduces Stronger Sanctions Against North Korea

The Isle of Man has strengthened its sanctions against North Korea, imposing strict regulations on various sectors, including aircraft and crew services, ship classification services, bunkering or ship supply services, and immigration restrictions.

New Regulations

According to the new regulations:

  • Crew Services: It is prohibited to provide crew services to designated persons, those acting on their behalf, or those owned or controlled by them. Additionally, it is prohibited to procure crew services from individuals connected with North Korea.
  • Ship Classification Services: Regulation 60 prohibits the provision of ship classification services for ships specified under Regulation 11(1) or (2), or ships registered in North Korea or flying its flag.
  • Bunkering and Ship Supply Services: Regulation 61 prohibits bunkering or ship supply services to ships specified under Regulation 11(1) or (2).
  • Travel Ban: The regulations impose a travel ban on designated individuals, who are excluded persons for the purposes of section 8B of the Immigration Act 1971. This means that those individuals will be refused leave to enter or remain in the Isle of Man, and any applications they make for a visa to travel to the UK/IOM will be refused.

Asset Freeze and Ship Movement Restrictions

  • Asset Freeze: The regulations impose an asset freeze on vessels designated by the UN for that purpose.
  • Ship Movement Restrictions: The regulations prohibit the movement of ships and aircraft in Isle of Man waters and airspace, including entry into ports and landing in the island.

Enforcement and Penalties

The Treasury is responsible for monitoring compliance with financial sanctions and investigating suspected breaches. The regulations make it a criminal offence to contravene the finance, trade, aircraft, and shipping sanctions, and prescribe penalties for such offences.

  • Criminal Prosecution: Breaches of financial sanctions can result in a maximum sentence of 7 years’ custody or a fine (or both), while breaches of other provisions can carry penalties ranging from summary fines to imprisonment.
  • Reporting Obligations: Part 10 of the Regulations places obligations on relevant firms to report information about known or suspected designated persons or individuals who may have committed an offence under specified provisions of these Regulations. Firms are advised to familiarize themselves with their obligations and responsibilities under Part 10 and seek independent legal advice if necessary.

International Effort

The Isle of Man’s move is part of a broader international effort to apply pressure on North Korea to comply with UN resolutions and cease its nuclear weapons program.