1. It shall be prohibited to transfer funds to and from the DPRK.
2. It shall be prohibited for credit and financial institutions to enter into, or continue to participate in, any transactions with:
(a)
credit and financial institutions domiciled in the DPRK;
(b)
branches or subsidiaries falling within the scope of Article 1 of credit and financial institutions domiciled in the DPRK;
(c)
branches or subsidiaries falling outside the scope of Article 1 of credit and financial institutions domiciled in the DPRK;
(d)
credit and financial institutions that are not domiciled in the DPRK, that fall within the scope of Article 1 and that are controlled by persons, entities or bodies domiciled in the DPRK;
(e)
credit and financial institutions that are not domiciled in DPRK or do not fall within the scope of Article 1, but are controlled by persons, entities or bodies domiciled in the DPRK.
3. The prohibitions in paragraphs 1 and 2 shall not apply to any transfer of funds or transaction which is necessary for the official purposes of a diplomatic or consular mission of a Member State in the DPRK or an international organisation enjoying immunities in DPRK in accordance with international law.
4. The prohibitions in paragraphs 1 and 2 shall not apply to any of the following transactions, provided that they involve a transfer of funds for amounts equal to or below EUR 15 000 or equivalent:
(a)
transactions regarding foodstuffs, healthcare or medical equipment or for agricultural or humanitarian purposes;
(b)
transactions regarding personal remittances;
(c)
transactions regarding the execution of the exemptions provided for in this Regulation;
(d)
transactions in connection with a specific trade contract not prohibited by this Regulation;
(e)
transactions required exclusively for the implementation of projects funded by the Union or its Member States for development purposes directly addressing the needs of the civilian population or the promotion of denuclearisation; and
(f)
transactions regarding a diplomatic or consular mission or an international organisation enjoying immunities in accordance with international law, insofar as such transactions are intended to be used for official purposes of the diplomatic or consular mission or international organisation.
1. By way of derogation from the prohibitions in Article 21(1) and (2), the competent authorities of the Member States may authorise the transactions mentioned in points (a) to (f) of Article 21(4) with a value above EUR 15 000 or equivalent.
2. The requirement for authorisation referred to in paragraph 1 shall apply regardless of whether the transfer of funds is executed in a single operation or in several operations which appear to be linked. For the purpose of this Regulation, ‘operations which appear to be linked’ includes:
(a)
a series of consecutive transfers from or to the same credit or financial institution within the scope of Article 21(2), to or from the same DPRK person, entity or body, which are made in connection with a single obligation to transfer funds, where each individual transfer falls below EUR 15 000 but which, in the aggregate, meet the criteria for authorisation; and
(b)
a chain of transfers involving different payment service providers, or natural or legal persons, which is related to a single obligation to make a transfer of funds.
3. The Member States shall notify each other and the Commission of any authorisation granted pursuant to paragraph 1.
4. By way of derogation from the prohibitions in Article 21(1) and (2), the competent authorities of the Member States may authorise transactions regarding payments to satisfy claims against the DPRK, its nationals or legal persons, entities or bodies incorporated or constituted under the law of the DPRK, and transactions of a similar nature that do not contribute to activities prohibited by this Regulation, on a case-by-case basis and if the Member State concerned has notified the other Members States and the Commission at least 10 days in advance of granting an authorisation.
1. Credit and financial institutions shall, in their activities with credit and financial institutions referred to in Article 21(2):
(a)
apply customer due diligence measures established pursuant to Articles 13 and 14 of Directive (EU) 2015/849 of the European Parliament and of the Council ( 18 ) ;
(b)
ensure compliance with anti-money-laundering and counter-terrorist-financing procedures established pursuant to Directive (EU) 2015/849 and Regulation (EU) 2015/847 of the European Parliament and of the Council ( 19 ) ;
(c)
require that information on payers as well as information on payees accompanying transfers of funds is provided as required by Regulation (EU) 2015/847 and refuse to process the transaction if any of this information is missing or incomplete;
(d)
maintain records of the transactions in accordance with point (b) of Article 40 of Directive (EU) 2015/849;
(e)
where there are reasonable grounds to suspect that funds could contribute to the DPRK's nuclear-related, ballistic-missile-related or other weapons of mass destruction-related programmes or activities (‘proliferation financing’), promptly notify the competent Financial Intelligence Unit (FIU) as defined by Directive (EU) 2015/849, or any other competent authority designated by the Member State concerned, without prejudice to Article 7(1) or Article 33 of this Regulation;
(f)
promptly report any suspicious transactions, including attempted transactions;
(g)
refrain from carrying out transactions which they reasonably suspect could be related to proliferation financing until they have completed the necessary action in accordance with point (e) and have complied with any instructions from the relevant FIU or competent authority.
2. For the purposes of paragraph 1, the FIU, or any other competent authority serving as a national centre for receiving and analysing suspicious transactions, shall receive reports regarding potential proliferation financing and shall have access, directly or indirectly, on a timely basis, to the financial, administrative and law-enforcement information that it requires in order to perform that function properly, including the analysis of suspicious transaction reports.
It shall be prohibited for credit and financial institutions:
(a)
to open an account with a credit or financial institution referred to in Article 21(2);
(b)
to establish a correspondent banking relationship with a credit or financial institution referred to in Article 21(2);
(c)
to open representative offices in the DPRK, or to establish a new branch or subsidiary, in the DPRK; and
(d)
to establish a joint venture with or to take an ownership interest in a credit or financial institution referred to in Article 21(2).
1. By way of derogation from the prohibitions in points (b) and (d) of Article 24, the competent authorities of the Member States may authorise transactions if they have been approved by the Sanctions Committee in advance.
2. The Member State concerned shall promptly notify the other Member States and the Commission of any authorisation under paragraph 1.
In accordance with the requirements of UNSCR 2270 (2016), credit and financial institutions shall, on 31 May 2016 at the latest:
(a)
close any account with a credit or financial institution referred to in Article 21(2);
(b)
terminate any correspondent banking relationship with a credit or financial institution referred to in Article 21(2);
(c)
close representative offices, branches, and subsidiaries in the DPRK;
(d)
terminate joint ventures with a credit or financial institution referred to in Article 21(2); and
(e)
relinquish any ownership interest in a credit or financial institution referred to in Article 21(2).
1. By way of derogation from points (a) and (c) of Article 26, the competent authorities of the Member States may authorise certain representative offices, subsidiaries or accounts to remain operational, provided that the Sanctions Committee has determined on a case-by-case basis that such offices, subsidiaries or accounts are required for the delivery of humanitarian activities or the activities of diplomatic missions in the DPRK or the activities of the UN or its specialised agencies or related organisations or any other purpose consistent with the objectives of UNSCRs 1718 (2006), 1874 (2009), 2087 (2013), 2094 (2013), 2270 (2016), 2321 (2016) or 2371 (2017).
2. The Member State concerned shall promptly notify the other Member States and the Commission of any authorisation granted pursuant to paragraph 1.
1. It shall be prohibited for credit and financial institutions to open an account for DPRK diplomatic missions or consular posts, and their DPRK members.
2. On 11 April 2017 at the latest, credit and financial institutions shall close any account held or controlled by a DPRK diplomatic mission or consular post, and their DPRK members.
1. By way of derogation from Article 28(1), the competent authorities of the Member States may authorise, upon request of a DPRK diplomatic mission, consular post, or one of their members, the opening of one account per mission, post and member, provided that the mission or post is hosted in that Member State or the member of the mission or post is accredited to that Member State.
2. By way of derogation from Article 28(2), the competent authorities of the Member States may authorise an account to remain open, upon request by a DPRK mission, post, or member, provided that the Member State has determined that:
(i)
the mission or post is hosted in that Member State or the member of that mission or post is accredited to that Member State; and
(ii)
the mission, post or its member does not hold any other account within that Member State.
In the event that the mission, post or the DPRK member holds more than one account within that Member State, the mission, post, or member may indicate which account shall be retained.
3. Subject to the applicable rules of the 1961 Vienna Convention on Diplomatic Relations and the 1963 Vienna Convention on Consular Relations, the Member States shall inform the other Member States and the Commission of the names and identifying information of any DPRK member of the diplomatic mission and consular post accredited to that Member State, at the latest on 13 March 2017, and of subsequent updates within one week.
4. The competent authorities of the Member States may inform credit and financial institutions in that Member State of the identity of any DPRK member of a diplomatic mission or consular post accredited to that or any other Member State.
5. The Member States shall inform the other Member States and the Commission of any authorisation granted pursuant to paragraphs 1 and 2.
It shall be prohibited:
(a)
to authorise the opening of a representative office or the establishment of a branch or subsidiary in the Union of a credit or financial institution referred to in Article 21(2);
(b)
to conclude agreements for, or on behalf of, a credit or financial institution referred to in Article 21(2) pertaining to the opening of a representative office or the establishment of a branch or subsidiary in the Union;
(c)
to grant an authorisation for taking up and pursuing the business of a credit institution or for any other business requiring prior authorisation, by a representative office, branch or subsidiary of a credit or financial institution referred to in Article 21(2), if the representative office, branch or subsidiary was not operational before 19 February 2013;
(d)
to acquire or to extend a participation, or to acquire any other ownership interest, in a credit or financial institution falling within the scope of Article 1 by any credit or financial institution referred to in Article 21(2); and
(e)
to operate or facilitate the operation of a representative office, branch or subsidiary of a credit or financial institution referred to in Article 21(2).
It shall be prohibited:
(a)
to sell or purchase public or public-guaranteed bonds issued after 19 February 2013, directly or indirectly, to or from any of the following:
(i)
the DPRK or its Government, and its public bodies, corporations and agencies;
(ii)
the Central Bank of the DPRK;
(iii)
any credit or financial institution referred to in Article 21(2);
(iv)
a natural person or a legal person, entity or body acting on behalf or at the direction of a legal person, entity or body referred to in point (i) or (ii);
(v)
a legal person, entity or body owned or controlled by a person, entity or body referred to in point (i), (ii) or (iii);
(b)
to provide 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)
to assist a person, entity or body referred to in point (a) in order to issue public or public-guaranteed bonds, by providing brokering services, advertising or any other service with regard to such bonds.
It shall be prohibited to provide financing or financial assistance for trade with the DPRK, including the granting of export credits, guarantees or insurance to natural or legal persons, entities or bodies involved in such trade.
1. By way of derogation from Article 32, the competent authorities of the Member States may authorise financial support for trade with the DPRK, provided that the Member State has obtained the advance approval of the Sanctions Committee on a case-by-case basis.
2. The Member State concerned shall inform the other Member States and the Commission of any authorisation granted under paragraph 1.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.
