OFAC sanctions 4 facilitators of illicit shipments on behalf of N Korea

OFAC2Yesterday, OFAC sanctioned Russian national Vasili Aleksandrovich Kolchanov and 3 entities pursuant to Executive Order 13810 for “facilitating illicit shipments on behalf of North Korea”.

The 3 entities: China-based Dalian Sun Moon Star International Logistics Trading Co Ltd; its Singapore-based affiliate, SINSMS Pte Ltd; and Russia-based Profinet Pte Ltd (Mr Kolchanov is the Director General of Profinet). As a result, all the listed persons are now subject to a US asset freeze, as well as a US travel ban in the case of Mr Kolchanov. See OFAC Notice and Treasury press release.

OFAC sanctions Russian bank and other facilitators of North Korean sanctions violations

OFAC2Today, OFAC has sanctioned Russian-registered bank Agrosoyuz Commercial Bank, pursuant to Executive Order 13810, for “knowingly facilitating a significant transaction on behalf of an individual designated for weapons of mass destruction-related activities in connection with North Korea”.

OFAC has also sanctioned a Moscow-based individual, Ri Jong Won, and two entities, Dandong Zhongsheng Industry & Trade Co Ltd and Korea Ungum Corporation, for “facilitating North Korean illicit financial activity”. See OFAC Notice and Treasury press release.

US advisory on North Korean “sanctions evasion tactics”

US Flag3.jpgThe US Government (State, Treasury, Homeland Security & others) has issued an advisory entitled Risks for Businesses with Supply Chain Links to North Korea, which notes the “sanctions evasion tactics” used by North Korea that could expose businesses – including manufacturers, buyers, and service providers – to sanctions compliance risks with US and/or UN sanctions authorities. It highlights penalties for sanctions violations and activities that could result in designation by OFAC (ie secondary sanctions).

The advisory also assists businesses in complying with the requirements under Title III, the Korean Interdiction and Modernization of Sanctions Act of the Countering America’s Adversaries Through Sanctions Act (CAATSA). See OFAC Notice here, and US Department of State press release here.

Hong Kong implements UN sanctions on North Korea

shutterstock_549687475.jpgLast week (22 June 2018), the Trade and Industry Department of Hong Kong announced that the Hong Kong Government had passed the United Nations Sanctions (Democratic People’s Republic Of Korea) (Amendment) Regulation 2018, which implements the latest UN sanctions against North Korea; namely, the measures contained within UN Security Council Resolutions 2270, 2321, 2371, 2375 and 2397.

US extends North Korea & Western Balkans sanctions for 1 year

White House2North Korea:

In June 2006, the US adopted Executive Order (E.O.) 13466, which declared a national emergency in respect of North Korea (‘proliferation of weapons-usable fissile material on the Korean Peninsula’). That E.O. was later amended by E.O. 13551, E.O. 13570, E.O. 13687, E.O. 13722, and E.O. 13810. Together, they impose an array of sanctions against North Korea.

Last week (22 June 2018), President Donald Trump extended those sanctions for 1 year by continuing the national emergency as declared. White House press release here.

Western Balkans:

In June 2001, the US adopted E.O. 13219, which declared a national emergency in respect of the Western Balkans. That E.O. was later amended by E.O. 13304. Together, they impose asset freezing measures on (inter alia) those engaging/supporting extremist violence in the Republic of Macedonia and elsewhere in the Western Balkans region, or acts which obstruct the implementation of the Dayton Accords in Bosnia or UNSC Resolution 1244 (1999), in Kosovo.

Last week (22 June 2018), President Donald Trump extended those sanctions for 1 year by continuing the national emergency as declared. White House press release here.

US sanctions on North Korea to remain until complete denuclearisation attained

North Korea Flag and MissilesAt yesterday’s summit in Singapore between US President Donald Trump and North Korean leader Kim Jong-un, a joint statement was signed to reach (inter alia) the “complete denuclearization of the Korean Peninsula”.

In a press conference following the summit, President Trump stated that “[i]n the meantime, the [US] sanctions will remain in effect”, and that they “will come off when we are sure that the nukes are no longer a factor”.

However, China’s Foreign Ministry has stated that the international community ought to consider lifting UN sanctions on North Korea given the “efforts of current diplomatic talks towards denuclearising the Korean peninsula”.

NZ aircraft manufacturer fined $75k for violating UN sanctions on N Korea

Engine Blade.jpgWe reported in October 2017 that New Zealand aircraft manufacturer Pacific Aerospace Ltd had pleaded guilty in a New Zealand Court to indirectly exporting aircraft parts to North Korea, in violation of UN sanctions. This week, Judge John Bergseng fined the company NZ $74,805 (approx. US $52,633) for the breach.

Third countries align with EU’s Iran, DPRK and DRC sanctions

EU5.jpgOn 12 April 2018, the EU adopted, firstly, Council Decision (CFSP) 2018/568, which extended for 1 year its Iran human rights sanctions (previous blog), and, secondly, Council Implementing Decision (CFSP) 2018/569, which amended the statements of reasons relating to 2 people on its Democratic Republic of the Congo (DRC) sanctions list (previous blog). In relation to the Iran Decision, the EU has announced that Macedonia, Montenegro, Albania, Bosnia and Herzegovina, Iceland, Liechtenstein, Norway and Moldova have aligned themselves with that measure. In relation to the DRC Decision, the EU has announced that Macedonia, Montenegro, Albania, Bosnia and Herzegovina, Iceland, Liechtenstein, Moldova and Armenia have aligned themselves with that measure.

On 19 April 2018, the EU adopted Council Decision (CFSP) 2018/611, which added 4 people to its North Korea sanctions list (previous blog). The EU has announced that Macedonia, Montenegro, Serbia, Albania, Bosnia and Herzegovina, Iceland, Liechtenstein, Norway, Moldova and Armenia have aligned themselves with that measure.