EXTRAORDINARY

OFFICIAL GAZETTE

THE BAHAMAS

PUBLISHED BY AUTHORITY

NASSAU 29th March, 2019

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INTERNATIONAL OBLIGATIONS (ECONOMIC AND ANCILLARY MEASURES) (DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA) ORDER, 2019

Arrangement of Paragraphs

Paragraph

PART I- PRELIMINARY	2

1. | Citation.................................................................................................................. 2
2. | Interpretation.......................................................................................................... 2

PART II – PROHIBITIONS, FREEZING OF FUNDS AND EXEMPTIONS	3

3. | Prohibition on supply, sale or transfer of equipment, goods and technology, etc. 3
4. | Prohibition on financial services and related transactions...................................... 6
5. | Prohibition on supply, sale, transfer, registration, lease, charter of, and insurance to, vessels, etc.......................................................................................................... 7
6. | Freezing of funds, etc. of designated individuals and entities................................ 7
7. | Exemptions............................................................................................................ 8

PART III - APPOINTMENT OF FOCAL POINTS AND PROCEDURES	9

8. | Appointment of focal points................................................................................... 9
9. | Reporting, etc. of funds, financial assets or economic resources of individuals or entities...................................................................................................................... 10
10. | Procedure for unfreezing of funds, financial assets or economic resources or related services.......................................................................................................... 11
11. | Procedure for grant of exemptions....................................................................... 12
12. | Procedure for communication of compliance of action taken under this Order.. 12
13. | False positive or mistaken identity........................................................................ 13

PART IV - MISCELLANEOUS	13

14. | Acts done in good faith......................................................................................... 13
15. | Strict compliance.................................................................................................. 13
16. | Revocation of S. I. No. 106 of 2008.................................................................... 13

SCHEDULE | 14

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OFFICE OF THE GOVERNOR-GENERAL

S.I. No. 23 of 2019

INTERNATIONAL OBLIGATIONS (ECONOMIC AND ANCILLARY MEASURES) ACT (CHAPTER 16)

INTERNATIONAL OBLIGATIONS (ECONOMIC AND ANCILLARY MEASURES) (DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA) ORDER, 2019

The Governor-General, in exercise of the powers conferred by section 3 of the International Obligations (Economic and Ancillary Measures) Act, makes the following Order —

PART I- PRELIMINARY

1. Citation. This Order may be cited as the International Obligations (Economic and Ancillary Measures) (Democratic People's Republic of Korea) Order, 2019.

2. Interpretation. In this Order — "Committee" means the United Nations Security Council Committee established pursuant to paragraph 12 of Security Council Resolution ("S/RES") 1718 (2006); "funds and other financial assets or economic resources" mean — (a) any type of fund or asset, corporeal or incorporeal, moveable or immoveable, tangible or intangible, however acquired, and a legal document or instrument in any form, including electronic or digital, evidencing title to, or interest in, such asset or fund and any interest, dividend or other income on or value accruing from or generated by such fund or asset; (b) cash, any other type of financial asset, economic resource, whether tangible or intangible, movable or immovable, however acquired, and a legal document or instrument in any form, including electronic or digital, evidencing title to, or interest in, such fund or other asset, including but not limited to, bank credit, travellers cheque, bank cheque, money order, share, security, bond, draft, or letter of credit, and any interest, dividend or other income on or value accruing from or generated by such fund or other asset which is located inside or outside The Bahamas; and (c) those used for the provision of internet hosting or related services, and for the support of the designated individuals and entities.

PART II – PROHIBITIONS, FREEZING OF FUNDS AND EXEMPTIONS

3. Prohibition on supply, sale or transfer of equipment, goods and technology, etc. Subject to paragraph 7, no person in The Bahamas and no Bahamian outside The Bahamas shall directly or indirectly — (a) supply, sell or transfer to the Democratic People's Republic of Korea ("the DPRK") by way of a Bahamian registered vessel or aircraft — (i) all arms and related materiel, including small arms and light weapons and their related materiel, as well as financial transactions, technical training, advice, services or assistance related to the provision, manufacture, maintenance or use of such arms and related materiel pursuant to paragraph 6 of S/RES/2270 (2016); (ii) items, materials, equipment, goods and technology designated in documents S/2006/853, S/2006/853/CORR.1, S/2016/308, S/2016/1069, S/2017/728, S/2017/760, S/2017/822, S/2017/829 and in paragraph 20 of S/RES/2094 (2013), paragraph 23 of S/RES/2270 (2016) and paragraph 4 of S/RES/2321 (2016) as well as other items, materials, equipment, goods and technology, determined by the Committee, which could contribute to DPRK's nuclear-related, ballistic missile-related or other weapons of mass destruction-related programmes; (iii) items specified in INFCIRC/254/Rev.13/Part1, INFCIRC/254/Rev.11/Part1, INFCIRC/254/Rev.10/Part2 and INFCIRC/254/Rev.8/Part2 and S/2014/253 pursuant to paragraph 5(b) of S/RES/2087 (2013); (iv) luxury goods pursuant to paragraph 8 (a)(iii) of S/RES/1718 (2006), paragraph 23 of S/RES/2094 (2013), paragraph 39 of S/RES/2270 (2016) and paragraph 5 of S/RES/2321 (2016); (v) condensates and natural gas liquids pursuant to paragraph 13 of S/RES/2375 (2017); (b) provide bunkering services such as fuel, supplies, or other servicing of vessels pursuant to paragraph 17 of S/RES/1874 (2009), if there are reasonable grounds to believe that the vessels are carrying items prohibited by paragraph 8(a), 8(b) or 8(c) of S/RES/1718 (2006) or by paragraph 9 or 10 of S/RES/1874 (2009), unless provision of such services is necessary for humanitarian purposes, or until such time as the cargo has been inspected, and seized and disposed of, if necessary; (c) supply, sell or transfer to DPRK by way of Bahamian registered vessels or aircrafts, pipelines, rail lines or vehicles — (i) all crude oil and aviation fuel, including that related to the DPRK's nuclear or ballistic missile programmes or other activities prohibited by S/RES/1718 (2006), S/RES/1874 (2009), S/RES/2087 (2013), S/RES/2094 (2013), S/RES/2270 (2016), S/RES/2321 (2016), S/RES/2356 (2017), S/RES/2371 (2017), S/RES/2375 (2017) and S/RES/2397 (2017), pursuant to paragraph 4 of S/RES/2397 (2017); (ii) refined petroleum products pursuant to paragraph 5 of S/RES/2397 (2017) provided that the supply, sale or transfer of refined petroleum products involve no individuals or entities that are associated with DPRK's nuclear or ballistic missile programmes or other activities prohibited by S/RES/1718 (2006), S/RES/1874 (2009), S/RES/2087 (2013), S/RES/2094 (2013), S/RES/2270 (2016), S/RES/2321 (2016), S/RES/2356 (2017), S/RES/2371 (2017), S/RES/2375 (2017) and S/RES/2397 (2017); (iii) all industrial machinery (HS codes 84 and 85), transportation vehicles (HS codes 86 through 89), and iron, steel and other metals (HS codes 72 through 83) pursuant to paragraph 7 of S/RES/2397 (2017); (d) procure from the DPRK, by way of a Bahamian registered vessel or aircraft — (i) items in subparagraphs (a)(i) and (ii) and in accordance with paragraph 8(b) of S/RES/1718 (2006); (ii) seafood (including fish, crustaceans, mollusks, and other aquatic invertebrates in all forms) pursuant to paragraph 9 of S/RES/2371 (2017); (iii) food and agricultural products (HS codes 12, 08 and 07), machinery (HS code 84), electrical equipment (HS code 85), earth and stone including magnesite and magnesia (HS code 25), wood (HS code 44), and vessels (HS code 89) pursuant to paragraph 6 of S/RES/2397 (2017); (iv) textiles (including but not limited to fabrics and partially or fully completed apparel products) pursuant to paragraph 16 of S/RES/2375 (2017), unless the Committee approves on a case-by-case basis in advance; (v) gold, titanium ore, vanadium ore, copper, nickel, silver, zinc, lead and lead ore and rare-earth minerals pursuant to paragraph 30 of S/RES/2270 (2016) and paragraphs 8 and 10 of S/RES/2371 (2017); (vi) missile or missile related-items, materials, goods and technology, and the transfer of any financial resources in relation to DPRK's missile or weapons of mass destruction programmes pursuant to paragraph 4 of S/RES/1695 (2006); (vii) statues pursuant to paragraph 29 of S/RES/2321 (2016); (viii) coal, iron and iron ore pursuant to paragraph 26 of S/RES/2321 (2016), however this provision shall not apply with respect to coal that The Bahamas confirms on the basis of credible information has originated outside the DPRK and was transported through the DPRK solely for export from the Port of Rajin (Rason); provided that The Bahamas notifies the Committee in advance and such transactions involving coal outside of DPRK are unrelated to generating revenue for the DPRK's nuclear or ballistic missile programmes or other activities prohibited by S/RES/1718 (2006), S/RES/1874 (2009), S/RES/2087 (2013), S/RES/2094 (2013), S/RES/2270 (2016), S/RES/2321 (2016), S/RES/2356 (2017) and S/RES/2371 (2017); (e) provide to nationals of the DPRK, specialized teaching or training of disciplines which would contribute to the DPRK's proliferation of sensitive nuclear activities and to the development of nuclear weapon delivery systems, pursuant to paragraph 8(c) of S/RES/1718 (2006); (f) provide to the DPRK any financial transactions, technical training, advice, services or assistance related to the provision, manufacture, maintenance or use of the items in subparagraph (a)(i) and (ii) and in accordance with paragraph 6 of S/RES/2270 (2016).

4. Prohibition on financial services and related transactions. Subject to paragraph 7, no person in The Bahamas and no Bahamian outside The Bahamas shall — (i) provide to DPRK financial services and related transactions, or assistance related to the provision, manufacture, maintenance or use of small arms and related materiel, pursuant to paragraphs 9 and 10 of S/RES/1874 (2009); (ii) provide to DPRK financial services, or transfer to, through, or from The Bahamas, any financial or other assets or resources that could contribute to the DPRK's nuclear-related, ballistic missile-related, or other weapons of mass destruction-related programmes or activities, and apply enhanced monitoring to prevent all such transactions pursuant to paragraph 18 of S/RES/1874 (2009); (iii) provide to DPRK financial services including bulk cash and gold, new commitments for grants, and financial assistance or concessional loans, that could contribute to the DPRK's nuclear or ballistic missile programmes, or other activities prohibited by S/RES/1718 (2006), S/RES/1874 (2009), S/RES/2087 (2013), or S/RES/2094 (2013), or to the evasion of measures imposed by S/RES/1718 (2006), S/RES/1874 (2009), S/RES/2087 (2013), S/RES 2094 (2013), S/RES/2270 (2016) or S/RES/2371 (2017) pursuant to paragraphs 11 and 14 of S/RES/2094 (2013) and paragraph 19 of S/RES/1874 (2009); (iv) provide public and private financial support for trade with the DPRK (including the granting of export credits, guarantees or insurance to DPRK's nationals or entities involved in such trade) where such financial support could contribute to the DPRK's nuclear or ballistic missile programs or other activities prohibited by S/RES/1718 (2006), S/RES/1874 (2009), S/RES/2087 (2013), S/RES/2094 (2013), S/RES/2321 (2016) or S/RES/2270 (2016), pursuant to paragraph 36 of S/RES/2270 (2016), unless the Committee approves on a case-by-case basis in advance; (v) open, maintain, and operate joint ventures or cooperative entities, new and existing, with DPRK entities or individuals, whether or not acting for or on behalf of the government of the DPRK, unless such joint ventures or cooperative entities have been approved by the Committee in advance on a case-by-case basis.

5. Prohibition on supply, sale, transfer, registration, lease, charter of, and insurance to, vessels, etc. No person in The Bahamas and no Bahamian outside The Bahamas shall directly or indirectly — (a) register vessels in DPRK; obtain authorisation for a vessel to use DPRK flag; and own, lease, operate, provide any vessel classification, certification or associated service; or insure any vessel flagged by DPRK, pursuant to paragraph 20 of S/RES/2270 (2016) and paragraph 9 of S/RES/2321 (2016), unless the Committee approves on a case-by-case basis in advance; (b) pursuant to paragraph 22 of S/RES/2321 (2016) and paragraph 11 of S/RES/2397 (2017), provide insurance or reinsurance services to vessels — (i) owned, controlled, or operated, including through illicit means, by the DPRK; (ii) if there is reasonable grounds to believe that such vessels were involved in activities or the transfer of items prohibited by S/RES/1718 (2006), S/RES/1874 (2009), S/RES/2087 (2013), S/RES/2094 (2013), S/RES/2270 (2016), S/RES/2321 (2016), S/RES/2356 (2017), S/RES/2371 (2017) or S/RES/2375 (2017), unless the Committee determines on a case-by-case basis that the vessel is engaged in activities exclusively for livelihood purposes which will not be used by DPRK individuals or entities to generate revenue or exclusively for humanitarian purposes; (c) supply, sell or transfer to the DPRK, new helicopters, and new or used vessels pursuant to paragraph 30 of S/RES/2321 (2016) and paragraph 14 of S/RES/2397 (2017); (d) lease or charter their flagged vessels or aircraft or provide crew services to the DPRK pursuant to paragraph 19 of S/RES/2270 (2016); (e) procure vessel and aircraft or crewing services from the DPRK pursuant to paragraph 23 of S/RES/2321 (2016).

6. Freezing of funds, etc. of designated individuals and entities. Subject to paragraph 7(b), no funds, other financial assets and economic resources held in banks or financial institutions licensed in The Bahamas that are owned or controlled, directly or indirectly, by — (a) designated individuals or entities listed in the Schedule; and (b) any additional individual or entity designated by the Committee established pursuant to paragraph 12 of S/RES/1718 (2006), paragraph 5(a) of S/RES/2087 (2013), paragraph 8 of S/RES/2094 (2013), paragraphs 10 and 23 of S/RES/2270 (2016), paragraph 3 of S/RES/2321 (2016), S/RES/2356 (2017), S/RES/2371 (2017), S/RES/2375 (2017), and S/RES/2397 (2017), or the Security Council, shall be made available to an individual or entity referred to under subparagraphs (a) and (b), or to an individual or entity acting on behalf of, or at the direction of an individual or entity referred to under subparagraphs (a) and (b).

7. Exemptions. This Order does not prohibit — (a) the supply, sale or transfer to the DPRK by way of a Bahamian registered vessel or aircraft of — (i) small arms and light weapons and their related materiel, upon giving the Committee a minimum of five days' notice in advance pursuant to paragraph 10 of S/RES/1874 (2009); and (ii) food or medicine, if The Bahamas determines that such items could directly contribute to the development of the DPRK's operational capabilities of its armed forces pursuant to paragraph 8 of S/RES/2270 (2016); (b) any individual or entity specified in the Schedule from accessing funds, other financial assets and economic resources that are determined by the Minister of Foreign Affairs, based on the conditions specified in paragraph 9 of S/RES/1718 (2006), to be — (i) necessary for basic expenses, including payment for foodstuffs, rent or mortgage, medicines and medical treatment, taxes, insurance premiums, and public utility charges, or exclusively for payment of reasonable professional fees and reimbursement of incurred expenses associated with the provision of legal services, or fees or service charges, in accordance with the laws of The Bahamas for routine holding or maintenance of frozen funds, other financial assets and economic resources; (ii) necessary for extraordinary expenses provided that such determination has been notified by The Bahamas to the Committee and has been approved by the Committee; (iii) the subject of a judicial, administrative or arbitral lien or judgment, in which case the funds, other financial assets and economic resources may be used to satisfy that lien or judgment provided that the lien or judgment was entered prior to the date of the passing of S/RES/1718 (2006), or is not for the benefit of an individual referred to in paragraph 8(d) of S/RES/1718 (2006) or an individual or entity identified by the Committee; (c) the transshipment of Russia-origin coal to The Bahamas through the Russia-DPRK Rajin-Khasan port and rail project, in accordance with paragraph 8 of S/RES/2371 (2017) and paragraph 18 of S/RES/2375 (2017); (d) measures being taken which would — (i) prevent adverse humanitarian consequences for the civilian population of the DPRK or result in restricting economic activities and cooperation in order to facilitate the provision of food aid and humanitarian assistance, which are not prohibited by S/RES/1718 (2006), S/RES/1874 (2009), S/RES/2094 (2013), S/RES/2270 (2016), S/RES/2321 (2016), S/RES/2356 (2017), S/RES/2371 (2017), S/RES/2375 (2017) and S/RES/2397 (2017) pursuant to paragraph 46 of S/RES/2321 (2016); (ii) facilitate the provision of assistance and relief activities in the DPRK carried out by international and non-governmental organizations for the benefit of the civilian population of the DPRK pursuant to paragraph 46 of S/RES/2321 (2016); (e) the use of funds, other financial assets and economic resources required to carry out activities of the DPRK's missions to the United Nations and its specialised agencies and related organizations or other diplomatic and consular missions of the DPRK or for denuclearization efforts pursuant to paragraph 32 of S/RES/2270 (2016).

PART III - APPOINTMENT OF FOCAL POINTS AND PROCEDURES

8. Appointment of focal points. The following persons shall be the focal points for the implementation of the United Nations Security Council Resolutions — (a) the Director of Legal Affairs; (b) the Director-General of the Ministry of Foreign Affairs; (c) the Permanent Secretary with responsibility for National Security; (d) the Permanent Secretary with responsibility for Tourism and Civil Aviation; (e) the Permanent Secretary with responsibility for Transport; (f) the Director of Immigration; (g) the Financial Secretary; (h) the Director of the Financial Intelligence Unit; and (i) the National Identified Risk Coordinator.

9. Reporting, etc. of funds, financial assets or economic resources of individuals or entities. (1) The following process shall apply to all funds, financial assets or economic resources or related services of individuals and entities held in, or through, financial institutions — (a) the financial institutions shall maintain and update the list of designated individuals and entities in electronic form and regularly check the United Nations' website to verify whether individuals or entities designated by the Committee are holding any funds, financial assets or economic resources or related services or any form of relations with them; (b) if the particulars of any of the financial institution's customers match the particulars of the designated individuals and entities, the financial institution shall — (i) immediately freeze all related accounts; (ii) conduct a transactional review; and (iii) report to the Financial Intelligence Unit, within the next working day, the full particulars of the designated individuals or entities, and the funds, financial assets or economic resources or related services held by such customer on the financial institution's books; (c) the Financial Intelligence Unit shall analyse the report and, if necessary — (i) request additional information or documents from the financial institution; or (ii) engage the Royal Bahamas Police Force; (d) if the Financial Intelligence Unit's analysis reveal that the details of the reported customers do not match the details of the designated individuals or entities, the Financial Intelligence Unit shall advise the financial institution to lift the freeze; (e) if the details of the reported customers match the details of the designated individuals or entities, the Financial Intelligence Unit shall forward a report to the Royal Bahamas Police Force and the Director of Legal Affairs and the financial institution shall be advised accordingly; (f) on receipt of the particulars or documents referred to under subparagraph (1)(c), the Royal Bahamas Police Force shall investigate and verify that the individuals or entities forwarded by the Financial Intelligence Unit are the individuals or entities so designated by the Committee; (g) the verification specified under subparagraph (1)(f) shall be completed within a period not exceeding five working days from the date of the receipt of such information; (h) if the Royal Bahamas Police Force finds that the individuals or entities forwarded by the Financial Intelligence Unit are the individuals or entities designated by the Committee, the Royal Bahamas Police Force shall — (i) trace out any property owned by, or are held for the benefit of, the designated individuals or entities, and immediately freeze or attach the property; (ii) inform the result of the verification and the particulars of the frozen property to the Financial Intelligence Unit who shall immediately issue a temporary freeze order and advise the Director of Legal Affairs so as to support a permanent freeze on such property by a court order. (2) For the purposes of this Part, "financial institution" has the same meaning ascribed to it under the Financial Transactions Reporting Act, 2018 (No. 5 of 2018).

10. Procedure for unfreezing of funds, financial assets or economic resources or related services. (1) An individual or entity with evidence to prove that the freezing of funds, financial assets or economic resources or related services, owned or held by the individual or entity has been inadvertently frozen, shall make application to the financial institution or to the Attorney-General giving the requisite evidence, in writing. (2) The financial institutions shall inform the Attorney-General of the application made under subparagraph (1) and forward a copy of that application together with full details of the frozen funds, financial assets or economic resources or related services to the Attorney-General. (3) The Attorney-General shall cause such verification as may be required on the basis of the evidence provided by the individual or entity and if satisfied, the Director of Legal Affairs shall apply for an order, within 15 working days, for unfreezing the funds, financial assets or economic resources or related services, owned or held by such applicant, with notice to the financial institution. (4) If it is not possible to issue instructions for the unfreezing of the assets within 15 working days, the Attorney-General shall inform the applicant. (5) If the Attorney-General is not convinced by the supporting documents or information, the Attorney-General shall forward the documents or information to the Royal Bahamas Police Force for investigation and follow up, and the results of such investigation shall be reported to the Attorney-General. (6) The results of the investigation specified under subparagraph (5) and the application shall be submitted to the Committee for their determination and the decision received shall be communicated to the financial institution or the applicant.

11. Procedure for grant of exemptions. The Attorney-General — (a) may receive requests from designated individuals or entities for the exemptions referred to under paragraph 7; (b) shall transmit such requests to the Committee for a decision and direct the Committee to consider such requests; and (c) shall communicate the decision of the Committee to the designated individuals and entities.

12. Procedure for communication of compliance of action taken under this Order. The Director of Legal Affairs shall provide details of — (a) funds, financial assets or economic resources or related services of designated individuals or entities frozen by an order; and (b) the individuals whose entry into The Bahamas or transit through The Bahamas was prevented, to the Director-General of the Ministry of Foreign Affairs for onward communication to the Committee.

13. False positive or mistaken identity. Upon request by any of the designated individuals or entities, the Attorney-General may allow the funds and other financial assets or economic resources of an individual or entity with the same name as a designated individual or entity (for example, a false positive or mistaken identity) to be unfrozen pursuant to a court order, provided that the Attorney-General is satisfied that the individual or entity is not the actual designated individual or entity.

PART IV - MISCELLANEOUS

14. Acts done in good faith. No suit or prosecution or administrative measures or any other legal proceedings shall lie against any individual or entity for action taken in good faith when enforcing this Order.

15. Strict compliance. A financial institution shall file an annual declaration, signed by at least two Directors of its Board of Directors or its compliance officers, certifying that the operations of the financial institution are in compliance with this Order, and the declaration shall be filed within ninety days of the calendar year end.

16. Revocation of S. I. No. 106 of 2008. The International Obligations (Economic and Ancillary Measures)(Democratic People's Republic of Korea) Order, 2008 is revoked.

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SCHEDULE

(paragraphs 6 and 7)

LIST ESTABLISHED AND MAINTAINED PURSUANT TO SECURITY COUNCIL RESOLUTION 1718 (2006)

(Specified Below)

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[The remainder of the document consists of the "List established and maintained pursuant to Security Council res. 1718 (2006)" which includes names, designations, and other identifying information for various individuals and entities.]

Made this 26th day of March, 2019.

Signed MARGUERITE PINDLING Governor-General