Yesterday, Her Majesty’s Treasury (HMT) implemented Council Implementing Regulation (EU) No 2016/311 by removing the following person: 

from the Ukraine misappropriation sanctions program.

Links:

HMT Notice

Council Implementing Regulation (EU) No 2016/311

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On Friday, the Council of the EU issued the following notice:

On 4 March 2016, the Council added 16 people and 12 entities to the list of targets subject to EU restrictive measures against the Democratic People’s Republic of Korea (DPRK).

The decision transposes the new listings imposed by United Nations Security Council Resolution 2270 adopted on 2 March 2016 in response to North Korea’s nuclear test and rocket launch on 6 January 2016 and 7 February 2016, respectively.

The legal acts will be published in the Official Journal on 5 March 2016.

EU restrictive measures against North Korea were introduced on 22 December 2006. The existing measures implement all UNSC resolutions adopted after the DPRK’s nuclear tests and launches using ballistic missile technology and also include additional EU autonomous measures. They target North Korea’s nuclear, WMD and ballistic missile programmes. The measures include prohibitions on the export and import of arms, goods and technology that could contribute to these programmes. Both the UN and the EU, autonomously, also imposed measures targeting financial services, trade and transport. The EU last strengthened its measures on 22 April 2013, transposing UNSC resolution 2094.

Link:

EU Notice

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On March 1st, Finnish regulatory authorities provided an update of the recent changes to Belarus sanctions, which removed the overwhelming majority of listed persons and entities (maintaining only 4 persons for another year), providing links to the recent decisions and regulations issued:

• Council Decision (CFSP) 2016/280 
• Council Regulation (EU) 2016/277
• Council Implementing Regulation (EU) 2016/276 

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Today’s circular from the Hong Kong Securities and Futures Commission includes updates from the United Nations (11 persons and 1 entity added to the ISIL (Da’esh) and Al-Qaida List) and the US under Executive Order 13224. The UN Web Notice for this update is attached.

Links:

HK SFC Notice

HK SFC Circular

UN Web Notices

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Yesterday, the Office of Foreign Assets Control (OFAC) designated the following 2 persons: 

NOWBAHAR, Abdullah; DOB 1984 to 1986; POB Afghanistan (individual) [SDGT]. 

SABOOR, Abdul (a.k.a. NASRATYAR, Abdul Saboor; a.k.a. “Engineer Saboor”); DOB 1986; POB Afghanistan (individual) [SDGT].

under their Counter Terrorism sanctions program.

Link:

OFAC Notice

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Links:

EU Notice

EU Council Decision

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Links:

EU Notice

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You know, this will take a while to digest – which I will do in subsequent posts. But, long story short, OFAC is amending the Cuban Asset Control Regulations (CACR) to make various things easier to do without violating sanctions – like liberalizing personal travel, some financial provisions (including U-turns for Cuba!)…

Newly updated FAQ, too! And a Fact Sheet summarizing the changes…

Links:

OFAC Notice

CACR Amendments

Cuban Sanctions FAQ

CACR changes Fact Sheet

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Link:

UN Narraitve Summary

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The ISIL (Da’esh) and Al-Qaida organisations

Council Regulation (EU) 881/2002 (“the Regulation”) imposing financial sanctions against Al-Qaida has been amended by Council Regulation 2016/363 (“the Amending Regulation”).

On 15 March 2016 the Amending Regulation was published in the Official Journal of the European Union by the European Commission. The Amending Regulation took effect on 16 March.

The title of the regime has been amended, and will now be referred to as “the ISIL (Da’esh) and Al-Qaida organisations”. The consolidated list reflects this change. Persons listed on the consolidated list under the former regime name ‘Al-Qaida’ continue to be subject to an asset freeze.

The Amending Regulation also amended several articles of the Regulation. Please see the Amending Regulation for details.

 

The Amending Regulation can be accessed here: http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32016R0363&from=EN

Links:

HMT Notice

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On Wednesday, the President issued a new Executive Order expanding sanctions on North Korea. In conjunction with that, Treasury Secretary Jack Lew designated the transportation, mining, energy and financial services sectors as being subject to the new E.O.. OFAC also issued 9 new General Licenses in conjunction with the new sanctions.

Lastly, designations….

People: 

JO, Yong Chol (a.k.a. CHO, Yong Chol), Syria; DOB 30 Sep 1973; nationality Korea, North; North Korea’s Ministry of State Security Official (individual) [DPRK2]. 

 

RI, Won Ho, Egypt; DOB 17 Jul 1964; citizen Korea, North; Passport 381310014 (Korea, North) expires 12 Jul 2016; North Korea’s Ministry of State Security Official (individual) [DPRK2]. 

Entities:

CHONGBONG SHIPPING CO LTD, Room 502, 90, Ponghak-dong, Pyongchon-guyok, Pyongyang, Korea, North; Vessel Registration Identification IMO 5878589 [DPRK3]. 

 

HOERYONG SHIPPING CO LTD, 108, Pongnam-dong, Pyongchon-guyok, Pyongyang, Korea, North; Vessel Registration Identification IMO 5817786 [DPRK3]. 

 

ILSIM INTERNATIONAL BANK, Pyongyang, Korea, North; SWIFT/BIC ILSIKPPY [DPRK3]. 

 

KOREA FOREIGN TECHNICAL TRADE CENTER, Korea, North [DPRK3]. 

 

KOREA OCEAN SHIPPING AGENCY, Moranbong District, Pyongyang, Korea, North; Namp’o Branch, Namp’o, South P’yo’ngan Province, Korea, North; Hungnam Branch, Hungnam, South Hamgyong Province, Korea, North; Chongjin Branch, Songphyong District, Chongjin, North Hamgyong Province, Korea, North; Haeju Branch, Haeju, South Hwanghae Province, Korea, North; Songnim Branch, Songnim, North Hwanghae Province, Korea, North; Wonsan Branch, Wonsan, Kangwon Province, Korea, North; Rason Branch, Rason, North Hamgyong Province, Korea, North [DPRK3]. 

 

KOREA SAMILPO SHIPPING CO, Tonghung-dong, Chung-guyok, Pyongyang, Korea, North; Vessel Registration Identification IMO 1701459 [DPRK3]. 

 

KOREA UNITED DEVELOPMENT BANK, Pyongyang, Korea, North; SWIFT/BIC KUDBKPPY [DPRK3]. 

 

KOREA ZUZAGBONG MARITIME LTD, Kinmaul-dong, Moranbong-guyok, Pyongyang, Korea, North; Vessel Registration Identification IMO 1991835 [DPRK3]. 

 

KOREAN BUYON SHIPPING CO. LTD. (a.k.a. KOREA BUYON SHIPPING CO; a.k.a. KOREAN BUYON SHIPPING COMPANY LIMITED), Wonsan, Kangwon-do, Korea, North; Vessel Registration Identification IMO 5057119 [DPRK3]. 

 

KOREAN POLISH SHPG CO LTD, Kinmaul-dong, Moranbong-guyok, Pyongyang, Korea, North; Vessel Registration Identification IMO 1267131 [DPRK3]. 

 

KOREAN WORKERS PARTY, PROPAGANDA AND AGITATION DEPARTMENT (a.k.a. PROPAGANDA AND AGITATION DEPARTMENT; a.k.a. PROPAGANDA AND AGITATION DEPARTMENT, WORKERS PARTY OF KOREA), Pyongyang, Korea, North [DPRK3]. 

 

MIRIM SHIPPING CO LTD, Tonghung-dong, Chung-guyok, Pyongyang, Korea, North; Vessel Registration Identification IMO 5647684 [DPRK3]. 

 

OCEAN BUNKERING JV CO, Otan-dong, Chung-guyok, Pyongyang, Korea, North; Vessel Registration Identification IMO 4199470 [DPRK3]. 

 

SINGWANG ECONOMICS AND TRADING GENERAL CORPORATION, Korea, North [DPRK3]. 

 

THAEPHYONGSAN SHIPPING CO LTD, Room 402, 90, Sochon-dong, Sosong-guyok, Pyongyang, Korea, North; Vessel Registration Identification IMO 5878575 [DPRK3]. 

Vessels:

CHONG BONG Democratic People’s Republic of Korea flag; Vessel Registration Identification IMO 8909575 (vessel) [DPRK3] (Linked To: CHONGBONG SHIPPING CO LTD). 

 

CHONG RIM 2 Democratic People’s Republic of Korea flag; Vessel Registration Identification IMO 8916293 (vessel) [DPRK3] (Linked To: OCEAN BUNKERING JV CO). 

 

EVER BRIGHT 88 Sierra Leone flag; Vessel Registration Identification IMO 8914934 (vessel) [DPRK] (Linked To: OCEAN MARITIME MANAGEMENT COMPANY LIMITED). 

 

GOLD STAR 3 Cambodia flag; Vessel Registration Identification IMO 8405402 (vessel) [DPRK] (Linked To: OCEAN MARITIME MANAGEMENT COMPANY LIMITED). 

 

GRAND KARO Cambodia flag; Vessel Registration Identification IMO 8511823 (vessel) [DPRK] (Linked To: OCEAN MARITIME MANAGEMENT COMPANY LIMITED). 

 

HOE RYONG Democratic People’s Republic of Korea flag; Vessel Registration Identification IMO 9041552 (vessel) [DPRK3] (Linked To: HOERYONG SHIPPING CO LTD). 

 

JH 86 Cambodia flag; Vessel Registration Identification IMO 8602531 (vessel) [DPRK] (Linked To: OCEAN MARITIME MANAGEMENT COMPANY LIMITED). 

 

JIN TAI 7 Sierra Leone flag; Vessel Registration Identification IMO 9163154 (vessel) [DPRK] (Linked To: OCEAN MARITIME MANAGEMENT COMPANY LIMITED). 

 

JIN TENG Sierra Leone flag; Vessel Registration Identification IMO 9163166 (vessel) [DPRK] (Linked To: OCEAN MARITIME MANAGEMENT COMPANY LIMITED). 

 

MI RIM 2 Democratic People’s Republic of Korea flag; Vessel Registration Identification IMO 9361407 (vessel) [DPRK3] (Linked To: MIRIM SHIPPING CO LTD). 

 

MI RIM Democratic People’s Republic of Korea flag; Vessel Registration Identification IMO 8713471 (vessel) [DPRK3] (Linked To: MIRIM SHIPPING CO LTD). 

 

ORION STAR; Vessel Registration Identification IMO 9333589 (vessel) [DPRK] (Linked To: OCEAN MARITIME MANAGEMENT COMPANY LIMITED). 

 

RA NAM 2 Democratic People’s Republic of Korea flag; Vessel Registration Identification IMO 8625545 (vessel) [DPRK3] (Linked To: KOREA SAMILPO SHIPPING CO). 

 

RA NAM 3 Democratic People’s Republic of Korea flag; Vessel Registration Identification IMO 9314650 (vessel) [DPRK3] (Linked To: KOREA SAMILPO SHIPPING CO). 

 

RYO MYONG Democratic People’s Republic of Korea flag; Vessel Registration Identification IMO 8987333 (vessel) [DPRK3] (Linked To: KOREAN POLISH SHPG CO LTD). 

 

SOUTH HILL 2 Sierra Leone flag; Vessel Registration Identification IMO 8412467 (vessel) [DPRK] (Linked To: OCEAN MARITIME MANAGEMENT COMPANY LIMITED). 

 

SOUTH HILL 5 Palau flag; Vessel Registration Identification IMO 9138680 (vessel) [DPRK] (Linked To: OCEAN MARITIME MANAGEMENT COMPANY LIMITED). 

 

THAE PYONG SAN Democratic People’s Republic of Korea flag; Vessel Registration Identification IMO 9009085 (vessel) [DPRK3] (Linked To: THAEPHYONGSAN SHIPPING CO LTD). 

 

TONG HUNG 1 Democratic People’s Republic of Korea flag; Vessel Registration Identification IMO 8661575 (vessel) [DPRK3] (Linked To: KOREA ZUZAGBONG MARITIME LTD). 

 

VICTORY 2 Mongolia flag; Vessel Registration Identification IMO 8312227 (vessel) [DPRK3] (Linked To: KOREAN BUYON SHIPPING CO. LTD.). 

And, yes, subsequent posts will excerpt or paraphrase all of this.

Links:

OFAC Notice

DPRK Executive Order

Treasury Secretary Determination

DPRK General Licenses

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Morad Laaboudi

Date on which the narrative summary became available on the Committee’s website: 

29 February 2016

Date(s) on which the narrative summary was updated: 

29 February 2016

 

Reason for listing: 

Morad Laaboudi was listed on 29 February 2016 pursuant to paragraphs 2 and 4 of resolution 2161 (2014) as being associated with Al-Qaida for “participating in the financing, planning, facilitating, preparing, or perpetrating of acts or activities by, in conjunction with, under the name of, on behalf of, or in support of” the Islamic State in Iraq and the Levant (ISIL), listed as Al-Qaida in Iraq (QDe.115).

Additional information: 

As of early 2015, Morad Laaboudi was a foreign terrorist fighter facilitator for Islamic State in Iraq and the Levant (ISIL), listed as Al-Qaida in Iraq (QDe.115). As of March 2015, he was a Turkey-based facilitator for ISIL’s bureau of immigration and processing, which assisted people in crossing the Turkish-Syria border. As of March 2015, he was an ISIL member in Gaziantep, Turkey, and was involved in ISIL’s outreach to armed opposition groups.

Link:

UN Narrative Summary

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Notice of administrative update to the Consolidated List

 

The Department of Foreign Affairs and Trade has made a number of administrative updates to the Consolidated List, namely:

• amending the name of UN Security Council sanctions committees for a number of entries to ensure consistency in naming conventions
• reflecting the designation of Al-Shabaab for both UN Security Council resolution 1373 and UN Security Council resolution 751 in separate entries in the Consolidated List – both designations had previously been reflected in a single entry in the Consolidated List.

 

These changes are of an administrative and presentational nature and do not indicate a change in status of any designated person or entity on the Consolidated List.

 

The updated Consolidated List can be downloaded from the following page: 

 

 

http://dfat.gov.au/international-relations/security/sanctions/pages/consolidated-list.aspx

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On March 17th, Her Majesty’s Treasiry (HMT) implemented Council Implementing Regulation (EU) No 2016/353 by removing the following persons: from the Ukraine sovereignty and territorial integrity sanctions:

Links:

HMT Notice

Council Implementing Regulation (EU) No 2016/353

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So, here’s what changed last week to the Cuban Asset Control Regulations (CACR):

• “People to people educational travel” now doesn’t have to be through a sponsoring organization. However, you have to keep records showing that you spent your time in authorized educational exchange activities. Those are ones which “enhance contact with the Cuban people, support civil society in Cuba, or promote the Cuban people’s independence from Cuban authorities.” THe activities also require “meaningful” dealings with Cubans. Interestingly enough, there is not a total ban in dealing with government or Communist Party officials. But the “predominant” portion of the authorized activities must not be with them.
• The restriction on salaries paid to Cuban nationals has been lifted if the Cuban government does not levy taxes on the salary. Similarly, firms can now hire Cuban nationals in the US if not required to pay a fee to the Cuban government. And all filing fees for non-immigrant travel authorizations are authorized.
• US persons may purchase Cuban-origin and other restricted goods for personal consumption outside the US.
• U-turn payments (sender and beneficiary bank outside the US, but funds flow through the US) are now authorized when neither the originator or beneficiary are US persons
• US banks may process monetary instruments presented indirectly by Cuban firms, but may not offer correspondent accounts to Cuban financial institutions
• US banks may open accounts for Cuban nationals for receiving proceeds from authorized activities and remitting those funds to Cuba
• The categories of activities for which a business presence in Cuba is authorized was expanded to include (specific regulatory references removed):
  • exporters of goods authorized for export or reexport to Cuba
  • entities providing mail or parcel transmission services that are authorized  or providing cargo transportation services in connection with trade involving Cuba that are authorized or exempt
  • providers of travel and carrier services that are authorized
• The categories of activities for which a physical presence in Cuba is authorized was expanded to include (specific regulatory references removed):
  • entities engaging in non-commercial activities that are authorized as Support for the Cuban People
  • entities engaging in authorized humanitarian projects
  • private foundations or research or educational institutes engaging in authorized transactions
• Educational grants, scholarships and awards may now be awarded to Cuban nationals
• Cuban-origin software may now be imported

Link:

CACR Amendments

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Last week’s Executive Order marked a significant expansion of sanctions against North Korea:

• Section 1 freezes all assets of the Government of North Korea and the Workers’ Party of Korea
• Section 2 freezes the assets of the followiing classes of people and entities, determined by the Treasury Secretary (consulting with the Secretary of State):
  • (i) to operate in any industry in the North Korean economy as may be determined by the Secretary of the Treasury, in consultation with the Secretary of State, to be subject to this subsection, such as transportation, mining, energy, or financial services;
    • Note: these 4 industries were, in fact, designated when the Executive Order was issued
  • (ii) to have sold, supplied, transferred, or purchased, directly or indirectly, to or from North Korea or any person acting for or on behalf of the Government of North Korea or the Workers’ Party of Korea, metal, graphite, coal, or software, where any revenue or goods received may benefit theGovernment of North Korea or the Workers’ Party of Korea, including North Korea’s nuclear or ballistic missile programs;
  • (iii) to have engaged in, facilitated, or been responsible for an abuse or violation of human rights by the Government of North Korea or the Workers’ Party of Korea or any person acting for or on behalf of either such entity;
  • (iv) to have engaged in, facilitated, or been responsible for the exportation of workers from North Korea, including exportation to generate revenue for the Government of North Korea or the Workers’ Party of Korea;
  • (v) to have engaged in significant activities undermining cybersecurity through the use of computer networks or systems against targets outside of North Korea on behalf of the Government of North Korea or the Workers’ Party of Korea;
  • (vi) to have engaged in, facilitated, or been responsible for censorship by the Government of North Korea or the Workers’ Party of Korea;
  • (vii) to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, any person whose property and interests in property are blocked pursuant to this order;
  • (viii) to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to this order; or
  • (ix) to have attempted to engage in any of the activities described in subsections (a)(i)–(viii) of this section. 
• Section 3 prohibits exports to North Korea, investment in North Korea, and financing, approval, facilitation or guarantee of any transaction of a third party which a US person could not participate in.
• Section 4 bars entry into the US of any person designated under Section 2
• Section 5 bars donations of goods specified in IEEPA section 203(b)(2).

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This circular sent by the Hong Kong Securities and Futures Commission is to inform regulated firms of the updated North Korea sanctions list issued by the United Nations.

Links:

HK SFC Notice

HK SFC Circular

UN DPRK Sanctions List

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With such far-reaching sanctions, the new Executive Order with respect to North Korea needed to have some carve-outs. In fact, there are nine:

• General License 1 – permits transactions for the DPRK UN mission, as well as to the mission’s employees and their families
• General License 2 – authorizes provision of certain legal services and advice
• General License 3 – permits the charging of service fees for blocked accounts
• General License 4 – authorizes no commercial personal remittances
• General License 5 – authorizes certain services provided by non-governmental organizations (NGOs)
• General License 6 – authorizes payments for third-country diplomatic missions and consulates located in North Korea
• General License 7 – authorizes mail and telecommunications transactions
• General License 8 – authorizes transactions related to intellectual property (patents, trademarks and copyrights)
• General License 9 – authorizes provision of emergency medical services

The licenses will be added to the Licenses page.

Links:

General License 1

General License 2

General License 3

General License 4

General License 5

General License 6

General License 7

General License 8

General License 9

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