The New OFAC North Korea Sanctions Executive Order

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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