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Korea, Democratic People’s Republic Of: Consequences of Non-Compliance in Finance

In a move to maintain economic sanctions on the Democratic People’s Republic of Korea (DPRK), the UK has issued a financial sanctions notice, highlighting the consequences of non-compliance.

Designation Under Sanctions Regulations

According to the notice, the MINISTRY OF NATIONAL DEFENCE has been designated under regulations made under the Sanctions and Anti-Money Laundering Act 2018. The entity is subject to an asset freeze, and individuals or businesses with connections to it are required to report any findings to the Office of Financial Sanctions Implementation (OFSI).

Consequences of Non-Compliance

The notice emphasizes that failure to comply with UK financial sanctions legislation may be a criminal offence, and individuals or entities found guilty could face severe penalties.

  • Individuals or businesses with connections to designated persons or entities must report any findings to OFSI.
  • Failure to comply with UK financial sanctions legislation may result in criminal charges and severe penalties.

Ensuring Compliance

To ensure compliance, businesses and individuals are advised to:

  • Check whether they maintain accounts or hold funds for designated persons and entities.
  • Freeze such assets and refrain from dealing with them.
  • Report any findings to OFSI.

Confidentiality of Information

The notice also reminds that information received by OFSI may be disclosed to third parties in accordance with applicable data protection laws.

Updates to the UK Sanctions List and Consolidated List

The UK Sanctions List has been updated on GOV.UK, providing details of those designated under regulations made under the Sanctions Act. The Consolidated List has also been updated, and individuals can access it through the link provided in the notice.

Statement from OFSI

In a statement, the Office of Financial Sanctions Implementation emphasized that compliance with financial sanctions is crucial to preventing the facilitation of the DPRK’s military programs.

Key Takeaways

  • The MINISTRY OF NATIONAL DEFENCE has been designated under regulations made under the Sanctions and Anti-Money Laundering Act 2018.
  • Individuals or businesses with connections to the entity must report any findings to the Office of Financial Sanctions Implementation (OFSI).
  • Failure to comply with UK financial sanctions legislation may be a criminal offence.
  • Businesses and individuals are advised to check whether they maintain accounts or hold funds for designated persons and entities.

For More Information

Visit the GOV.UK website for more information on the UK’s financial sanctions regime, including the Consolidated List, UK Sanctions List, and relevant guidance.