Regulatory Alerts2009-08-12 | BSD/DIR/CIR/GEN/03/020Restrictions on Democratic Peoples Republic of Korea (North Korea) Government Agencies and Front Companies for Involvement in Illicit Activities
The United Nations Security Council, through Resolution 1874 (UNSCR 1874), requests member countries to prevent financial services or assets that may contribute to North Korea's nuclear, ballistic missile, or other Weapon of Mass Destruction-related programs. This builds upon UNSCR 1718 from 2006, which authorized the freezing of assets for individuals and entities involved in these programs. Further measures include preventing North Korea from accessing financial services to facilitate transactions related to their prohibited activities. Financial transactions involving arms sales to North Korea are also prohibited. Banks must implement measures to ensure full compliance with these resolutions. A list of some identified North Korean banks is provided for reference.
234-9-46236403 234-9-46236418 August 10, 2009 BSD/DIR/CIR/GEN/03/020 CIRCULAR TO ALL BANKS RESTRICTIONS ON DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA (NORTH KOREA) GOVERNMENT AGENCIES AND FRONT COMPANIES FOR INVOLVEMENT IN ILLICIT ACTIVITIES The United Nations Security Council, through Resolution 1874 (UNSCR 1874), called on member countries to prevent the provision of financial services or any financial or other assets or resources that could contribute to North Korea's nuclear, ballistic missile, or other Weapon of Mass Destruction (WMD)-related programmes or activities. This is without prejudice to a similar UNSCR 1718 adopted in 2006 which authorized, among other things, the freezing of the assets of designated North Korean individuals and entities involved in nuclear, ballistic missile and other WMD-related programmes or activities. UNSCR 1874 provides additional measures beyond the asset freeze in UNSCR 1718 by calling on countries to prevent North Korea from assessing financial services to facilitate transactions related to its nuclear, ballistic missile and other WMD-related programmes or activities. It also prohibits financial transactions related to the sales of all arms and related material to North Korea. Banks and their related entities are therefore required to put in place measures to ensure maximum compliance with the provisions of UN Resolution 1874. Below is a list of some North Korean banks obtained from public and commercially available information for ease of reference.
i. Central Bank of the Democratic People's Republic of Korea ii. Credit Bank of Korea iii. Dae-Dong Credit Bank iv. First Credit Bank v. Foreign Trade Bank of the Democratic People's Republic of Korea vi. Hana Banking Corporation Ltd vii. The International Industrial Development Bank viii. Korea Joint Bank (KJB) ix. Korea Daesong Bank x. Korea Kwangson Bank xi. Korea United Development Bank xii. Koryo Commercial Bank Ltd xiii. Koryo Credit Development Bank xiv. North East Asia Bank xv. Tanchon Commercial Bank SAMUEL A. ONI DIRECTOR OF BANKING SUPERVISION