Financial Crime World

Financial Sanctions and Embargoes Tightened Against North Korea

The United Nations Security Council has updated its sanctions list in a move aimed at further restricting the Democratic People’s Republic of Korea’s (DPRK) military programs. The amendment, made on March 7, 2024, targets several entities and groups involved in facilitating the DPRK’s military activities.

Key Additions to the Sanctions List

  • Ministry of the People’s Armed Forces (MPAF): The MPAF has been added to the list as a key player in the DPRK’s military apparatus. The entity, also known as the Ministry of National Defence or Ministry of Defense, has been subject to an asset freeze since December 2017.

According to the UN Security Council, the MPAF manages the general administrative and logistical needs of the Korean People’s Army, making it a critical component in the DPRK’s military activities. The entity is listed under the UN’s sanctions regime aimed at preventing the transfer of funds or economic resources to individuals and entities involved in the country’s nuclear and ballistic missile programs.

Consequences of Non-Compliance

  • Asset Freeze: Financial institutions and other persons are required to freeze any accounts or funds held for or on behalf of the designated entity.
  • Reporting Requirements: They must report their findings to the Financial Intelligence Unit (FIU).
  • Criminal Offenses: Failure to comply with the sanctions legislation or attempting to circumvent its provisions is a criminal offense.

Update and Compliance

The amendment comes into effect immediately, and financial institutions and other persons are required to take immediate action. The update has been reflected in:

  • UN Security Council Press Release
  • Consolidated List: Providing details of those designated under sanctions legislation
  • Foreign, Commonwealth and Development Office List
  • Relevant UN Sanctions Committee Webpage

In related news, the Isle of Man Government’s Customs and Excise pages have been updated to reflect the changes to the sanctions regime related to North Korea.