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Financial Sanctions: Democratic Republic of North Korea 8 April 2013

This news release is issued in respect of the restrictive measures directed against the Democratic Republic of North Korea.

Council Regulation (EC) No 329/2007 ("the 2007 Regulation") has been amended with effect from 29 March 2013, following the publication of Council Regulation (EC) No 296/2013 in the Official Journal of the European Union.

Restrictions on Establishing Branches of EU Credit and Financial Institutions in North Korea

The new Article 5a of the 2007 Regulation prohibits EU credit and financial institutions from:

(a) opening new representative offices in North Korea or establishing a new branch or subsidiary in North Korea; and

(b) establishing a new joint venture with entities listed in Article 11a(2) of the 2007 Regulation.

Restrictions on Relations with Credit and Financial Institutions connected with North Korea

Article 5a also prohibits:

(a) authorising the opening of a representative office or the establishment of a branch or subsidiary in the European Union of entities listed in Article 11a(2) of the 2007 Regulation;

(b) concluding agreements pertaining to the opening of a representative office or the establishment of a branch or subsidiary in the Union, for, or on behalf of such entities;

(c) granting an authorisation for the taking up and pursuing the business of a credit institution (or any other business requiring prior authorisation), if the representative office, branch or subsidiary was not operational before 19 February 2013, to such entities; and

(d) acquiring or extending of a participation in, or acquiring any other ownership interest in, an EU credit or financial institution by such entities.

Bonds issued after 19 February 2013

The new Article 9a of the 2007 Regulation prohibits:

(a) directly or indirectly selling public or public-guaranteed bonds issued after 19 February 2013 to, or purchasing such bonds from

i. North Korea or its Government, and its public bodies, corporations and agencies;

ii. the Central Bank of North Korea;

iii. a credit or financial institution domiciled within North Korea, or any credit or financial institution referred to in Article 11a(2) of the 2007 Regulation;

iv. any natural person or legal person, entity or body acting on behalf of or at the direction of a legal person, entity or body referred to in (i) and (ii) above; and

v. a legal person, entity or body owned or controlled by a person, entity or body referred to in (i), (ii) or (iii) above.

(b) providing brokering services with regard to public or public-guaranteed bonds issued after 19 February 2013 to a person, entity or body referred to in point (a);

(c) assisting a person, entity or body referred to in point (1) in order to issue public or public-guaranteed bonds, by providing brokering services, advertising or any other service with regard to such bonds.

Further Information

A copy of the Amending Regulation can be found at http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2013:090:0004:0009:EN:PDF

Further details of the sanctions regime related to the Democratic People's Republic of Korea and links to the Consolidated List of individuals and entities subject to these and other financial sanctions may be found on the Customs and Excise pages of the Isle of Man Government website or by contacting the Sanctions Officer.

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