Regulatory Alerts2016-10-07 | BSD/DIR/GEN/LAB/09/044United Nations Security Council Resolution (UNSCR) 2270 (2016)
The Democratic People's Republic of Korea (DPRK), also known as North Korea, is a country in East Asia with its capital located in Pyongyang. It is currently ruled by the Kim dynasty, currently led by Kim Jong-un. The DPRK has been subject to international sanctions due to its nuclear and missile programs, human rights abuses, and involvement in cyber attacks. The North Korean economy is primarily state-controlled, with most major industries owned or heavily influenced by the government. Despite this, there are some areas of private economic activity, such as small shops and markets. The economy is predominantly agrarian, although it also has a significant mining industry. Key exports include coal, minerals, textiles, and military equipment. The DPRK has an extensive network of trade relationships with countries around the world. These relationships are facilitated by a complex system of front companies and diplomatic missions. The government-run Overseas Korean Workers' Association (OKWA) also plays a significant role in arranging labor exports, which provide a substantial source of foreign currency for North Korea. Despite the sanctions imposed on the DPRK, it has been able to maintain an illicit trade network through various methods, including shipping and maritime activities. The country is believed to operate numerous vessels that transport goods in violation of international sanctions. These vessels have been involved in activities such as coal smuggling and the transfer of prohibited luxury items. The North Korean government also has a history of engaging in cyber espionage, including attempts to steal intellectual property and sensitive information from foreign governments and companies. This activity is often carried out by groups affiliated with the government, such as Lazarus Group and APT38. In summary, despite facing significant international pressure, the DPRK has managed to maintain an extensive trade network through various means, including illicit activities and cyber espionage. The country's economy remains heavily state-controlled, with key industries owned or influenced by the government.
09-46236418/ 09-46236415 September 21, 2016 BSD/DIR/GEN/LAB/09/044 LETTER TO ALL BANKS AND OTHER FINANCIAL INSTITUITIONS UNITED NATIONS SECURITY COUNCIL RESOLUTION (UNSCR) 2270 (2016) You may recall the previous relevant UNSCR , including resolution 825 (1993), resolution 1540 (2004) resolution 1695 (2006) resolution 1718 (2006), resolution 1874 (2009) resolution 1887 (2009) , resolution 2087 (2013) and resolution 2094 (2013), as well as the statements of its President of 6 October 2006, 13 April 2009 and 16 April 2012 reaffirming that proliferation of nuclear, chemical and biological weapons, as well as their means of delivery, constitutes a threat to international peace and security. The Council recently expressed its gravest concern at the nuclear test conducted by the Democratic People's Republic of Korea (DPRK) on January 6, 2016 in violation of resolution 1718 (2006), 1874 (2009), 2087 (2013) and 2094 (2013), and the challenge such a test constitutes to the international efforts aimed at strengthening the global regime of non-proliferation of nuclear weapons, and the danger it poses to peace and stability in the region and beyond. Consequently the specific sanctions relating to banking in the UNSCR 2270 (2016) are enumerated in Article 32 to 38 of the Resolution. These Articles expanded the scope of persons, entities and activities covered by the latest sanctions such as: That the asset freeze imposed by paragraph 8 (d) of the resolution 1718 (2006) shall apply to all the funds, other financial assets and economic resources outside of the DPRK that are owned or controlled, directly or indirectly, by entities of the Government of the DPRK or the Worker's Party of Korea, or by individuals or entities acting on their behalf or at their direction, or by entities owned or controlled by them; That States shall prohibit in their territories the opening and operation of new branches, subsidiaries, and representatives offices of DPRK banks, prohibit financial institutions within their territories or subject to their jurisdiction from establishing new joint ventures and from taking an ownership interest in, or establishing or maintaining correspondent relationship with DPRK banks That States shall take the necessary measures to close existing representative offices , subsidiaries or banking accounts in the DPRK within ninety days, if the State concerned has credible information that provides reasonable grounds to believe that such financial services could contribute to the DPRK's nuclear or ballistic missile programs, or other activities prohibited by resolutions; That all States shall prohibit public and private financial support from within their territories or by persons or entities subject to their jurisdiction for trade with the DPRK (including the granting of export credits, guarantees or insurance to their nationals or entities involved in such trade) where such financial support could contribute to the DPRK's nuclear or ballistic missile programs or activities prohibited by resolutions.
In view of the above UNSCR 2270 (2016) you are required to put measures in place to ensure maximum compliance with the provisions of the UNSCR 2270 (2016) while ensuring the new issues/sanctions contained therein taking into cognizance the expanded Travel Ban/Asset Freeze on the named individuals, entities, vessels and goods (see attached Appendix I-IV), are also complied with. Yours faithfully, TOKUNBO MARTINS (MRS) DIRECTOR OF BANKING SUPERVISION
Appendix I
Travel Ban/Asset Freeze (Individuals) 1. CHOE CHUN-SIK a. Description: Choe Chun-sik was the director of the Second Academy of Natural Sciences (SANS) and was the head of the DPRK's long-range missile program. b. AKA: Choe Chun Sik; Ch'oe Ch'un Sik c. Identifiers: DOB: 12 October 1954; Nationality: DPRK 2. CHOE SONG IL a. Description: Tanchon Commercial Bank Representative in Vietnam b. AKA: NA c. Identifiers: Passport: 472320665; Passport Date of Expiration: 26 Sep 2017; Passport: 563120356; Nationality: DPRK
3. Hyon Kwang Il
a. Description: Hyon Kwang Il is the Department Director for Scientific Development at the National Aerospace Development Administration b. AKA: Hyon Gwang Il c. Identifiers: DOB: 27 May 1961; Nationality: DPRK 4. JANG BOM SU a. Description: Tanchon Commercial Bank Representative in Syria b. AKA: Jang Pom Su c. Identifiers: DOB: 15 April 1957; Nationality: DPRK 5. JANG YONG SON a. Description: Korea Mining Development Trading Corporation (KOMID) Representative in Iran b. AKA: NA c. Identifiers: DOB: 20 February 1957; Nationality: DPRK 6. JON MYONG GUK a. Description: Tanchon Commercial Bank Representative in Syria b. AKA: Cho'n Myo'ng-kuk c. Identifiers: Passport: 4721202031; Passport Date of Expiration: 21 Feb 2017; Nationality: DPRK; DOB: 18 Oct 1976 7. KANG MUN KIL a. Description: Kang Mun Kil has conducted nuclear procurement activities as a representative of Namchongang, also known as Namhung. b. AKA: Jiang Wen-ji c. Identifiers: Passport: PS 472330208; Passport Date of Expiration: 4 July 2017; Nationality: DPRK 8. KANG RYONG a. Description: Korea Mining Development Trading Corporation (KOMID) Representative in Syria b. AKA: NA c. Identifiers: DOB: 21 August 1969; Nationality: DPRK 9. KIM JUNG JONG a. Description: Tanchon Commercial Bank Representative in Vietnam b. AKA: Kim Chung Chong c. Identifiers: Passport: 199421147 Passport Date of Expiration: 29 Dec 2014; Passport: 381110042, Passport Date of Expiration: 25 Jan 2016; Passport: 563210184, Passport Date of Expiration: 18 Jun 2018; DOB: 07 Nov 1966, Nationality: DPRK
10. Kim Kyu
a. Description: Korea Mining Development Trading Corporation (KOMID) External Affairs Officer b. AKA: NA c. Identifiers: DOB: 30 July 1968, Nationality: DPRK
11. Kim Tong My'Ong
a. Description: Kim Tong My'ong is the President of Tanchon Commercial Bank and has held various positions within Tanchon Commercial bank since at least 2002. He has also played a role in managing Amroggang's affairs. b. AKA: Kim Chin-So'k, Kim Tong-Myong, Kim Jin-Sok; Kim, Hyok-Chol c. Identifiers: DOB: 1964; Nationality: DPRK 12. KIM YONG CHOL a. Description: KOMID Representative in Iran b. AKA: NA c. Identifiers: DOB. 18 February 1962; Nationality: DPRK a. Description: Tanchon Commercial Bank Representative b. AKA: Kim Myong Gi c. Identifiers: Passport: 563120630; Passport Date of Expiration: 20 March 2018, D.O.B. 25 May 1972; Nationality: DPRK 14. RI MAN GON a. Description: Ri Man Gon is the Minister of the Munitions Industry Department. b. AKA: n/a c. Identifiers: DOB: 29 October 1945; Passport number: PO381230469; Passport Date of Expiration: 6 April 2016; Nationality: DPRK a. Description: KOMID Representative in Syria b. AKA: NA c. Identifiers: DOB: 07 August 1965; Passport Number: 563410081; Nationality: DPRK a. Description: Yu Chol U is the Director of the National Aerospace Development Administration. b. AKA: n/a c. Identifiers: Nationality: DPRK List Update for Alias: Ra, Kyong-Su (KPi.008) - New AKA: Chang, Myong Ho 13. KO TAE HUN 15. RYU JIN 16. YU CHOL U Asset Freeze (Entities) 1. ACADEMY OF NATIONAL DEFENSE SCIENCE a. Description: The Academy of National Defense Science is involved in the DPRK's efforts to advance the development of its ballistic missile and nuclear weapons programs. b. AKA: n/a c. Location: Pyongyang, DPRK
2. Chongchongang Shipping Company
a. Description: The Chongchongang Shipping Company, through its vessel, the Chong Chon Gang, attempted to directly import the illicit shipment of conventional weapons and arms to the DPRK in July 2013 b. AKA: Chong Chon Gang Shipping Co. Ltd. c. Location: Address: 817 Haeun, Donghung-dong, Central District, Pyongyang, DPRK; Alternate Address: 817, Haeum, Tonghun-dong, Chung-gu, Pyongyang, DPRK; IMO Number: 5342883
3. Daedong Credit Bank (Dcb)
a. Description: Daedong Credit Bank has provided financial services to the Korea Mining Development Trading Corporation (KOMID) and Tanchon Commercial Bank. Since at least 2007, DCB has facilitated hundreds of financial transactions worth millions of dollars on behalf of KOMID and Tanchon Commercial Bank. In some cases, DCB has knowingly facilitated transactions by using deceptive financial practices.
B. Aka: Dcb; Aka: Taedong Credit Bank
c. Location: Address: Suite 401, Potonggang Hotel, Ansan-Dong, Pyongchon District, Pyongyang, DPRK; Alternate Address: Ansan-dong, Botonggang Hotel, Pongchon, Pyongyang, DPRK; SWIFT: DCBK KKPY
4. Hesong Trading Company
a. Description: The Korea Mining Development Trading Corporation (KOMID) is the parent company of Hesong Trading Corporation. b. Location: Pyongyang, DPRK
5. Korea Kwangson Banking Corporation (Kkbc)
a. Description: KKBC provides financial services in support to Tanchon Commercial Bank and Korea Hyoksin Trading Corporation, a subordinate of the Korea Ryonbong General Corporation. Tanchon Commercial Bank has used KKBC to facilitate funds transfers likely amounting to millions of dollars, including transfers involving Korea Mining Development Corporation related funds.
B. Aka: Kkbc
c. Address: Jungson-dong, Sungri Street, Central District, Pyongyang, DPRK 6. KOREA KWANGSONG TRADING CORPORATION a. Description: The Korea Ryongbong General Corporation is the parent company of Korea Kwangsong Trading Corporation. b. Address: Rakwon-dong, Pothonggang District, Pyongyang, DPRK
7. Ministry Of Atomic Energy Industry
a. Description: The Ministry of Atomic Energy Industry was created in 2013 for the purpose of modernizing the DPRK's atomic energy industry to increase the production of nuclear materials, improve their quality, and further develop an independent DPRK nuclear industry. As such, the MAEI is known to be a critical player in the DPRK's development of nuclear weapons and is in charge of day-to-day operation of the country's nuclear weapons program, and under it are other nuclear-related organizations. Under this ministry are a number of nuclear-related organizations and research centers, as well as two committees: an Isotope Application Committee and a Nuclear Energy Committee. The MAEI also directs a nuclear research center at Yongbyun, the site of the DPRK's known plutonium facilities. Furthermore, in the 2015 Panel of Experts (POE) report, the POE stated that Ri Je-son, a former director of the GBAE who was designated by the Committee established pursuant to resolution 1718 (2006) in 2009 for engagement in or support for nuclear related programs, was appointed as head of the MAEI on April 9, 2014.
B. Aka: Maei
c. Address: Haeun-2-dong, Pyongchon District, Pyongyang, DPRK
8. Munitions Industry Department
a. Description: The Munitions Industry Department is involved in key aspects of the DPRK's missile program. MID is responsible for overseeing the development of the DPRK's ballistic missiles, including the Taepo Dong-2. The MID oversees the DPRK's weapons production and R&D programs, including the DPRK's ballistic missile program. The Second Economic Committee and the Second Academy of Natural Sciences - also designated in August 2010 - are subordinate to the MID. The MID in recent years has worked to develop the KN08 road-mobile ICBM.
b. AKA: Military Supplies Industry Department c. Location: Pyongyang, DPRK 9. NATIONAL AEROSPACE DEVELOPMENT ADMINISTRATION a. Description: NADA is involved in the DPRK's development of space science and technology, including satellite launches and carrier rockets. b. AKA: NADA c. Location: DPRK 10. OFFICE 39 a. Description: DPRK government entity. b. AKA: Office #39; AKA: Office No. 39; AKA: Bureau 39; AKA: Central Committee Bureau 39; AKA: Third Floor; AKA: Division 39 c. Location: DPRK
11. Reconnaissance General Bureau
a. Description: The Reconnaissance General Bureau is the DPRK's premiere intelligence organization, created in early 2009 by the merger of existing intelligence organizations from the Korean Workers' Party, the Operations Department and Office 35, and the Reconnaissance Bureau of the Korean People's Army. The Reconnaissance General Bureau trades in conventional arms and controls the DPRK conventional arms firm Green Pine Associated Corporation. b. AKA: Chongch'al Ch'ongguk; KPA Unit 586; RGB c. Location: Address: Hyongjesan-Guyok, Pyongyang, DPRK; Alternate Address: Nungrado, Pyongyang, DPRK.
12. Second Economic Committee
a. Description: The Second Economic Committee is involved in key aspects of the DPRK's missile program. The Second Economic Committee is responsible for overseeing the production of the DPRK's ballistic missiles, and directs the activities of KOMID. b. AKA: N/A c. Location: Kangdong, DPRK List Update for Alias: NAMCHONGANG TRADING CORPORATION (KPe.004) - New AKA: Namhung Trading Corporation Appendix III OMM Vessels
| S/N. | SHIP NAME | IMO NO. |
|---|---|---|
| 1. | CHOL RYONG (RYONG GUN BONG) | 8606173 |
| 2. | CHONG BONG(GREENLIGHT)(BLUE NOUVELLE) | 8909575 |
| 3. | CHONG RIM 2 | 8916293 |
| 4. | DAWNLIGHT | 9110236 |
| 5. | EVER BRIGHT 88 (J STAR) | 8914934 |
| 6. | GOLD STAR 3 (BENEVOLENCE 2) | 8405402 |
| 7. | HOE RYONG | 9041552 |
| 8. | HU CHANG (O UN CHONG NYON) | 8330815 |
| 9. | HUI CHON (HWANG GUM SAN 2) | 8405270 |
| 10. | JH 86 | 8602531 |
| 11. | JI HYE SAN (HYOK SIN 2) | 8018900 |
| 12. | JIN Tal | 9163154· |
| 13. | JIN TENG | 9163166 |
| 14. | KANG GYE (PI RYU GANG) | 8829593 |
| 15. | MI RIM | 8713471 |
| 16. | MI RIM 2 | 9361407 |
| 17. | O RANG (PO THONG GANG) | 8829555 |
| 18. | ORION STAR (RICHOCEAN) | 9333589 |
| 19. | RA NAM 2 | 8625545 |
| 20. | RANAM 3 | 9314650 |
| 21. | RYO MYONG | 8987333 |
| 22. | RYONG RIM (JON JIN 2) | 8018912 |
|---|---|---|
| 23. | SE PHO (RAK WON 2) | 8819017 |
| 24. | SONGJIN (JANG JA SAN CHONG NYON HO) | 8133530 |
| 25. | SOUTH HILL 2 | 8412467 |
| 26. | SOUTH HILL 5 | 9138680 |
| 27. | TAN CHON (RYONG GANG 2) | 7640378 |
| 28. | THAE PYONG SAN (PETREL 1) | 9009085 |
| 29. | TONG HUNG SAN (CHONG CHON GANG) | 7937317 |
| 30. | GRAND KARO | 8511823 |
| 31. | TONG HUNG 1 | 8661575 |
Appendix IV: Luxury Goods (a) Luxury watches: wrist, pocket, and other with a case of precious metal or of metal clad with precious metal (b) Transportation items, as follows: (1) Aquatic recreational vehicles (such as personal watercraft) (2) Snowmobiles (valued greater than $2,000) (c) Items of lead crystal (d) Recreational sports equipment