Financial Regulatory Compliance Checklist in North Korea: Key Updates for Financial Institutions

Seoul, January 8, 2024 - Recent Developments in Financial Regulatory Compliance

The Democratic People’s Republic of Korea (DPRK) has recently updated its sanctions list, impacting financial institutions and individuals operating in the country. This amendment aims to tighten financial regulatory compliance to prevent illegal activities and ensure national security.

UN Security Council Updates the DPRK Sanctions List

On January 5, 2024, the UN Security Council made significant changes to the DPRK Sanctions List, which has been implemented by the Isle of Man Government through the Democratic People’s Republic of Korea Sanctions (Application) Regulations 2020. The updated list now includes two entities under an asset freeze:

• General Bureau of Atomic Energy (GBAE)
• Academy of National Defense Science

Compliance Requirements for Financial Institutions and Individuals

Financial institutions and individuals are required to conduct a thorough check to determine if they hold any accounts or economic resources for, or provide financial services to, designated individuals. If so, they must:

• Freeze such assets
• Report their findings to the Financial Intelligence Unit (FIU)

Failure to comply with financial sanctions legislation can result in criminal charges.

Additional Resources

The Consolidated List has been updated by the Foreign, Commonwealth and Development Office, providing details of those designated under sanctions legislation. The UN Sanctions Committee webpage offers further information on the measures taken against DPRK. The Isle of Man Government’s Customs and Excise pages also provide a comprehensive overview of the sanctions regime related to DPRK.

Recommendations for Financial Institutions

Financial institutions are advised to review their existing procedures and ensure compliance with these updates to avoid any potential legal consequences.