Legalize / United Kingdom / Statutory-Instrument

The Democratic People’s Republic of Korea (Sanctions) (EU Exit) Regulations 2019

Type Statutory-Instrument

Publication 2019-03-05

Last updated 2026-01-19

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

PDF Download

articles 2

Reform history JSON API

Made: 5th March 2019

Laid before Parliament: 8th March 2019

Coming into force in accordance with regulation 1(2)

The Secretary of State , in exercise of the powers conferred by sections 1(1)(a) and (c) and (3), 3(1)(a), (b)(ii) and (iii), (c)(ii) and (iii), (d) and (e)(ii) and (iii), 3(2)(a), (b) and (c), 4, 5 to 8, 9(2)(a), 10(2), (3) and (4), 11(2) to (9), 13, 14, 15(2), (3), (4)(b), (5) and (6), 16, 17(2) to (9), 19, 20, 21(1), 54(1) and (2)(a), 56(1) and 62(4) to (6) of, and paragraphs 2(a)(iii) and (b), 3(a), (b) and (c)(iii), 4(a)(iii), (b) and (c), 5(a)(ii) and (iii), (b), (c) and (d), 6(a)(ii) and (iii), (b) and (c), 7(a)(ii) and (iii) and (b), 8(c), 9(a)(iii), 11(a), 12(a)(ii), 13(a), (b), (d), (g), (h), (k), (l), (m), (n), (p), (r) and (w), 14(a), (f), (g), (i), (j) and (k), 17, 19, 20, 21, 22, 23 and 27 of Schedule 1 to, the Sanctions and Anti-Money Laundering Act 2018 , and having decided, upon consideration of the matters set out in section 2(2) and 56(1) of that Act, that it is appropriate to do so, makes the following Regulations:

PART 1 — General

Citation and commencement

1

(1) These Regulations may be cited as the Democratic People's Republic of Korea (Sanctions) (EU Exit) Regulations 2019.

(2) These Regulations come into force in accordance with regulations made by the Secretary of State under section 56 of the Act.

Interpretation

2

(1) In these Regulations—

“the Act” means the Sanctions and Anti-Money Laundering Act 2018;

“aircraft licence” means a licence under regulation 91;

“the armed forces of the DPRK” means the Korean People's Army, also known as the Korean People's Military, and includes each of its branches;

“arrangement” includes any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable (but see Schedule 1 for the meaning of that term in that Schedule);

a “banned programme” means any activity relating to banned weapons;

“banned weapons” means—nuclear, biological or chemical weapons,other weapons of mass destruction, orballistic missiles;

“brokering service” means any service to secure, or otherwise in relation to, an arrangement, including but not limited to—the selection or introduction of persons as parties or potential parties to the arrangement,the negotiation of the arrangement,the facilitation of anything that enables the arrangement to be entered into, andthe provision of any assistance that in any way promotes or facilitates the arrangement;

“CEMA” means the Customs and Excise Management Act 1979 ;

“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;

“the Committee” means the Committee of the Security Council established by paragraph 12 of resolution 1718;

“conduct” includes acts and omissions;

“consular post” has the same meaning as in the Vienna Convention on Consular Relations done at Vienna on 24 April 1963 , and any reference to the functions of a consular post is to be read in accordance with that Convention;

“diplomatic mission”, and any reference to the functions of a diplomatic mission, is to be read in accordance with the Vienna Convention on Diplomatic Relations done at Vienna on 18 April 1961 ;

“director disqualification licence” means a licence under regulation 89A;

“document” includes information recorded in any form and, in relation to information recorded otherwise than in legible form, references to its production include producing a copy of the information in legible form;

“the DPRK” means the Democratic People's Republic of Korea;

“the Dual-Use Regulation” means Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items;

“the EU DPRK Regulation” means Council Regulation (EU) No 2017/1509 of 30 August 2017 concerning restrictive measures against the Democratic People's Republic of Korea and repealing Regulation (EC) No 329/2007 , as it has effect in EU law;

“the Government of the DPRK” includes its public bodies, corporations or agencies;

“humanitarian assistance activity” includes the work of international and non-governmental organisations carrying out relief activities in the DPRK for the benefit of the civilian population there;

“member of a diplomatic mission” is to be read in accordance with the meaning of “members of the mission” in the Vienna Convention on Diplomatic Relations done at Vienna on 18 April 1961;

“member of a consular post” is to be read in accordance with the meaning of “members of the consular post” in the Vienna Convention on Consular Relations done at Vienna on 24 April 1963;

a “non-UN designated person” means a person—who is designated under regulation 5 for the purposes of regulations 13 to 17 (asset-freeze etc.), andwhose designation, in the opinion of the Secretary of State, is not required by paragraph 32 of resolution 2270 or a provision mentioned in regulation 4(4);

“resolution 1718” means resolution 1718 (2006) adopted by the Security Council on 14 October 2006;

“resolution 1874” means resolution 1874 (2009) adopted by the Security Council on 12 June 2009;

“resolution 2087” means resolution 2087 (2013) adopted by the Security Council on 22 January 2013;

“resolution 2094” means resolution 2094 (2013) adopted by the Security Council on 7 March 2013;

“resolution 2270” means resolution 2270 (2016) adopted by the Security Council on 2 March 2016;

“resolution 2321” means resolution 2321 (2016) adopted by the Security Council on 30 November 2016;

“resolution 2356” means resolution 2356 (2017) adopted by the Security Council on 2 June 2017;

“resolution 2371” means resolution 2371 (2017) adopted by the Security Council on 5 August 2017;

“resolution 2375” means resolution 2375 (2017) adopted by the Security Council on 11 September 2017;

“resolution 2397” means resolution 2397 (2017), adopted by the Security Council on 22 December 2017;

“ship licence” means a licence under regulation 92;

“trade licence” means a licence under regulation 90;

“transport licence” means a ship licence or an aircraft licence;

“Treasury direction” means a direction under regulation 89;

“Treasury licence” means a licence under regulation 88(1);

“United Kingdom person” has the same meaning as in section 21 of the Act.

(2) For the purposes of regulation 29 (ships: insurance services), Part 6 (Trade), Part 7 (Aircraft) and, subject to paragraph (4), Part 8 (Ships), a person is to be regarded as “connected with” the DPRK if the person is—

(a) an individual who is, or an association or combination of individuals who are, ordinarily resident in the DPRK,

(b) an individual who is, or an association or combination of individuals who are, located in the DPRK,

(d) a person, other than an individual, which is domiciled in the DPRK.

(3) For the purposes of regulations 58 (leasing or chartering of ships and aircraft) and 59(1) (provision of crew services for ships and aircraft), a person who does not fall within paragraph (2)(a) to (d) is also to be regarded as “connected with” the DPRK if that person—

(a) is acting on behalf of or at the direction of the Government of the DPRK, the armed forces of the DPRK, or any other person falling within any of sub-paragraphs (a) to (d) of paragraph (2), or

(b) is a person, other than an individual, which is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person falling within any of sub-paragraphs (a) to (d) of paragraph (2).

(4) For the purposes of regulation 71(5)(c) (reference to ship crewed by persons connected with the DPRK), a person is to be regarded as “connected with” the DPRK if the person is an individual who is—

(a) a national of the DPRK, or

(b) ordinarily resident in the DPRK.

Application of prohibitions and requirements outside the United Kingdom

3

(1) A United Kingdom person may contravene a relevant prohibition by conduct wholly or partly outside the United Kingdom.

(2) Any person may contravene a relevant prohibition, or a prohibition under regulation 65(1)(a) (overflight of aircraft) or a prohibition imposed by a condition of an aircraft licence by conduct in the territorial sea.

(3) In this regulation a “relevant prohibition” means any prohibition imposed by—

(a) regulation 9(2) (confidential information),

(b) Part 4 (Finance),

(d) regulation 66(6) (non-disclosure),

(e) Part 8 (Ships),

(f) regulation 101(2) (proliferation financing), or

(g) a condition of a Treasury licence, a Treasury direction, a trade licence or a ship licence.

(4) A United Kingdom person may comply, or fail to comply, with a relevant requirement by conduct wholly or partly outside the United Kingdom.

(5) Any person may comply, or fail to comply, with a relevant requirement, a requirement imposed by a direction under regulation 65(4) (direction by air traffic control to operator or pilot of DPRK aircraft) or 73 (movement of ships) or a requirement imposed by a condition of an aircraft licence, by conduct in the territorial sea.

(6) In this regulation a “relevant requirement” means any requirement imposed—

(a) by Chapter 2 of Part 4 (Investment, financial services and financial markets),

(b) by or under Part 10 (Information and records), or by reason of a request made under a power conferred by that Part, or

(7) Nothing in this regulation is to be taken to prevent a relevant prohibition or a relevant requirement from applying to conduct (by any person) in the United Kingdom.

Purposes

4

(1) The regulations contained in this instrument that are made under section 1 of the Act have the following purposes—

(a) compliance with the relevant UN obligations, and

(b) the additional purposes mentioned in paragraph (2).

(2) Those additional purposes are—

(a) restricting the ability of the DPRK to carry on banned programmes,

(b) promoting the abandonment by the DPRK of banned programmes and the decommissioning of the DPRK's banned weapons, and

otherwise than by compliance with the relevant UN obligations.

(3) In this regulation, “the relevant UN obligations” means—

(a) the obligation that the United Kingdom has by virtue of paragraph 8(d) of resolution 1718 (asset-freeze etc.) to take the measures required by that provision in respect of persons for the time being named for the purposes of that provision by the Security Council or the Committee;

(b) the obligations that the United Kingdom has by virtue of the provisions listed in paragraph (4) in respect of persons—

(i) acting on behalf of or at the direction of, or

(ii) owned or controlled by,

the persons for the time being named by the Security Council or the Committee for the purposes of paragraph 8(d) of resolution 1718 who are referred to in those provisions;

(c) the obligations that the United Kingdom has by virtue of paragraph 32 of resolution 2270 (application of requirements in paragraph 8(d) of resolution 1718 in certain cases);

(d) the obligations that the United Kingdom has by virtue of the provisions listed in paragraph (5) to take the measures required by paragraph 8(d) of resolution 1718 in respect of ships for the time being designated by the Security Council or the Committee for the purposes of those provisions;

(e) the obligations that the United Kingdom has by virtue of the following provisions (restrictions on investment and on financial services and markets)—

(i) paragraph 6 of resolution 2087;

(ii) paragraphs 11 and 14 of resolution 2094 as read with paragraph 37 of resolution 2270 and paragraph 13 of resolution 2371 (cash transfers, gold and clearing of funds);

(iii) paragraphs 33 and 34 of resolutions 2270 (as read with paragraph 14 of 2371), and paragraphs 35 and 36 of resolution 2270;

(iv) paragraphs 31 and 32 of resolution 2321;

(v) paragraph 12 of resolution 2371 and paragraph 18 of resolution 2375 (joint ventures);

(f) the obligations that the United Kingdom has by virtue of paragraphs 16 and 18 of resolution 2321 (bank accounts for diplomatic missions and diplomats; real property);

(g) the obligations that the United Kingdom has by virtue of paragraph 8(a)(i) and (ii), (b) and (c) of resolution 1718 (export, supply, sale etc. of, and technical assistance relating to, arms and dual-use items);

(h) the obligations that the United Kingdom has by virtue of the following provisions (trade restrictions)—

(i) paragraph 8(a)(iii) of resolution 1718;

(ii) paragraph 17 of resolution 1874;

(iii) paragraph 11 of resolution 2094, as read with paragraph 14 of resolution 2371;

(iv) paragraphs 8, 30, 31 and 37 of resolution 2270;

(v) paragraphs 28, 29 and 30 of resolution 2321;

(vi) paragraphs 8 and 10 of resolution 2371, and paragraph 9 of resolution 2371 as read with paragraph 6 of resolution 2397;

(vii) paragraphs 13, 14, 15 and 16 of resolution 2375;

(viii) paragraphs 4, 5, 6, 7 and 14 of resolution 2397;

(i) the obligations that the United Kingdom has by virtue of paragraph 19 of resolution 2270 (ships and aircraft);

(j) the obligation that the United Kingdom has by virtue of paragraph 22 of resolution 2270 (ships: port entry);

(k) the obligations that the United Kingdom has by virtue of the following provisions to take the measures required by those provisions (prohibition on port entry etc.) in respect of ships for the time being designated by the Security Council or the Committee for the purposes of those provisions—

(i) paragraph 12(a), (b) and (c) of resolution 2321;

(ii) paragraph 6 of resolution 2371 as read with paragraph 6 of resolution 2375;

(iii) paragraph 8 of resolution 2375;

(l) the obligations that the United Kingdom has by virtue of paragraph 17 of resolution 2094, paragraph 20 of resolution 2270, paragraphs 8, 9, 22, 23 and 24 of resolution 2321, paragraph 7 of resolution 2371, paragraph 11 of resolution 2375 and paragraphs 9, 11 and 12 of resolution 2397 (ships and services relating to ships);

(m) the obligations that the United Kingdom has by virtue of paragraph 21 of resolution 2270 and paragraph 23 of resolution 2321 (aircraft and services relating to aircraft).

(4) The provisions referred to in paragraph (3)(b) are—

(a) paragraph 8(d) of resolution 1718;

(b) paragraph 8 of resolution 2094;

(d) paragraph 3 of resolution 2321;

(e) paragraph 3 of resolution 2356;

(f) paragraph 3 of resolution 2371;

(g) paragraph 3 of resolution 2375;

(h) paragraph 3 of resolution 2397.

(5) The provisions referred to in paragraph (3)(d) are—

(a) paragraph 12(d) of resolution 2321;

(b) paragraph 8 of resolution 2375.

(6) In paragraph (3)—

(a) any reference to paragraph 8(d) of resolution 1718 (asset-freeze) is to that provision as read with paragraph 9 of resolution 2087 and paragraphs 12 and 15 of resolution 2270;

(b) any reference to persons named by the Committee includes people named by virtue of—

(i) paragraph 12 of resolution 2087,

(ii) paragraph 27 of resolution 2094, or

(iii) paragraph 16 of resolution 2270;

(i) paragraphs 9, 10 and 23 of resolution 1874,

(ii) paragraphs 5(b) and 9 of resolution 2087,

(iii) paragraphs 7, 20 and 22 of resolution 2094,

(iv) paragraphs 6, 7, 8 and 27 of resolution 2270,

(v) paragraphs 4 and 7 of resolution 2321,

(vi) paragraphs 4 and 5 of resolution 2371, and

(vii) paragraphs 4 and 5 of resolution 2375;

(d) the reference to paragraph 8(a)(iii) of resolution 1718 (luxury goods) is to that provision as read with paragraph 9 of resolution 2087, paragraph 23 of resolution 2094, paragraph 39 of resolution 2270 and paragraph 5 of resolution 2321;

(e) “owned or controlled” includes owned or controlled through illicit means within the meaning of the provisions mentioned in paragraph (4).

PART 2 — Designation of persons

Power to designate persons

5

(1) The Secretary of State may designate persons, by name, in accordance with regulation 5A (conditions for the designation of persons by name) for the purposes of any of the following—

(a) regulations 13 to 17 (asset-freeze etc.) and regulations 23 (closure of representative offices) and 24 (business arrangements with designated persons);

(aa) regulation 33A (Director disqualification sanctions);

(b) regulation 34 (immigration);

(d) regulations 71 (ships: prohibition on port entry) and 73 (movement of ships).

(2) The Secretary of State may designate different persons for the purposes of different provisions mentioned in paragraph (1).

Criteria for designating a person

6

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) For the purposes of regulation 5A (conditions for the designation of persons by name) an “involved person” means a person who—

(a) is or has been involved in the facilitation of any of the DPRK's military programmes,

(b) is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person who is or has been so involved,

(d) is a member of, or associated with, a person who is or has been so involved.

(3) For the purposes of this regulation a person is “involved in the facilitation of any of the DPRK's military programmes” if the person—

(a) is responsible for, engages in, provides support for, or promotes, any of the DPRK's banned programmes,

(b) provides financial services , or makes available funds or economic resources , that could contribute to any of the DPRK's banned programmes,

(c) is involved in the supply to or from the DPRK of arms or of material related to arms, or in providing financial services relating to such supply,

(d) is involved in the supply to the DPRK of items, materials, equipment, goods or technology which could contribute to any of the DPRK's banned programmes, or in providing financial services relating to such supply, or

(e) is involved in assisting the contravention or circumvention of any relevant DPRK-related provisions.

(4) In this regulation a “relevant DPRK-related provision” means—

(a) any provision of Part 4 or Parts 6 to 8;

(b) any provision of the law of a country other than the United Kingdom made for purposes corresponding to a purpose of any provision of Part 4 or Parts 6 to 8;

(5) Nothing in any sub-paragraph of paragraph (3) is to be taken to limit the meaning of any of the other sub-paragraphs of that paragraph.

(6) Any reference in this regulation to being involved in the facilitation of any of the DPRK's military programmes includes being so involved wherever any actions constituting the involvement take place.

Meaning of “owned or controlled directly or indirectly”

7

(1) A person who is not an individual (“C”) is “owned or controlled directly or indirectly” by another person (“P”) if either of the following two conditions is met (or both are met).

(2) The first condition is that P—

(a) holds directly or indirectly more than 50% of the shares in C,

(b) holds directly or indirectly more than 50% of the voting rights in C, or

(3) Schedule 1 contains provision applying for the purpose of interpreting paragraph (2).

(4) The second condition is that it is reasonable, having regard to all the circumstances, to expect that P would (if P chose to) be able, in most cases or in significant respects, by whatever means and whether directly or indirectly, to achieve the result that affairs of C are conducted in accordance with P's wishes.

Notification and publicity where designation power used

8

(1) Paragraph (2) applies where the Secretary of State—

(a) has made a designation under regulation 5, or

(b) has by virtue of section 22 of the Act varied or revoked a designation made under that regulation.

(2) The Secretary of State—

(a) must without delay take such steps as are reasonably practicable to inform the designated person of the designation, variation or revocation, and

(b) must take steps to publicise the designation, variation or revocation.

(3) The information given under paragraph (2)(a)—

(a) where the Secretary of State designates a person under the standard procedure, must include a statement of reasons;

(b) where the Secretary of State designates a person under the urgent procedure, must include a statement—

(i) that the designation is made under the urgent procedure,

(ii) identifying the relevant provision by reference to which the Secretary of State considers that condition B is met in relation to the person, and

(iii) setting out why the Secretary of State considers that condition C is met.

(3A) Where the Secretary of State designates a person under the urgent procedure, the Secretary of State must, after the end of the period mentioned in paragraph (7) of regulation 5A (conditions for the designation of persons by name) or, if the Secretary of State has made a certification under paragraph (7)(b) of that regulation, the period mentioned in paragraph (8) of that regulation, but otherwise without delay—

(a) in a case where the person ceases to be a designated person, take such steps as are reasonably practicable to inform the person that they have ceased to be a designated person, or

(b) in any other case, take such steps as are reasonably practicable to give the person a statement of reasons.

(4) In this regulation, a “statement of reasons” means a brief statement of the matters that the Secretary of State knows, or has reasonable grounds to suspect, in relation to the person—

(a) in the case of a designation under the standard procedure, which have led the Secretary of State to make the designation, and

(b) in the case of a designation under the urgent procedure, as a result of which the person does not cease to be a designated person at the end of the period mentioned in regulation 5A(7) or (8) (as the case may be).

(5) Where the Secretary of State considers that a person's designation is required by paragraph 32 of resolution 2270 or by a provision mentioned in regulation 4(4), the statement of reasons must include a statement that in the Secretary of State's opinion the designation is required by that paragraph or provision.

(6) Matters that would otherwise be required by paragraph (4) or (5) to be included in a statement of reasons may be excluded from it where the Secretary of State considers that they should be excluded—

(a) in the interests of national security or international relations,

(b) for reasons connected with the prevention or detection of serious crime in the United Kingdom or elsewhere, or

(7) The steps taken under paragraph (2)(b) must—

(a) unless one or more of the restricted publicity conditions is met, be steps to publicise generally—

(i) the designation, variation or revocation, and

(ii) in the case of a designation, the statement of reasons;

(b) if one or more of those conditions is met, be steps to inform only such persons as the Secretary of State considers appropriate of the designation, variation or revocation and (in the case of a designation) of the contents of the statement of reasons.

(8) The “restricted publicity conditions” are as follows—

(a) the designation is of a person believed by the Secretary of State to be an individual under the age of 18;

(b) the Secretary of State considers that disclosure of the designation, variation or revocation should be restricted—

(i) in the interests of national security or international relations,

(ii) for reasons connected with the prevention or detection of serious crime in the United Kingdom or elsewhere, or

(iii) in the interests of justice.

(9) Paragraph (10) applies if—

(a) when a designation is made one or more of the restricted publicity conditions is met, but

(b) at any time when the designation has effect, it becomes the case that none of the restricted publicity conditions is met.

(10) The Secretary of State must—

(a) take such steps as are reasonably practicable to inform the designated person that none of the restricted publicity conditions is now met, and

(b) take steps to publicise generally the designation and the statement of reasons relating to it.

Confidential information in certain cases where designation power used

9

(1) Where the Secretary of State in accordance with regulation 8(7)(b) informs only certain persons of a designation, variation or revocation and (in the case of a designation) of the contents of the statement of reasons, the Secretary of State may specify that any of that information is to be treated as confidential.

(2) A person (“P”) who—

(a) is provided with information that is to be treated as confidential in accordance with paragraph (1), or

(b) obtains such information,

must not, subject to paragraph (3), disclose it if P knows, or has reasonable cause to suspect, that the information is to be treated as confidential.

(3) The prohibition in paragraph (2) does not apply to any disclosure made by P with lawful authority.

(4) For this purpose information is disclosed with lawful authority only if and to the extent that—

(a) the disclosure is by, or is authorised by, the Secretary of State,

(b) the disclosure is by or with the consent of the person who is or was the subject of the designation,

(c) the disclosure is necessary to give effect to a requirement imposed under or by virtue of these Regulations or any other enactment, or

(d) the disclosure is required, under rules of court, tribunal rules or a court or tribunal order, for the purposes of legal proceedings of any description.

(5) This regulation does not prevent the disclosure of information that is already, or has previously been, available to the public from other sources.

(6) A person who contravenes the prohibition in paragraph (2) commits an offence.

(7) The High Court (in Scotland, the Court of Session) may, on the application of—

(a) the person who is the subject of the information, or

(b) the Secretary of State,

grant an injunction (in Scotland, an interdict) to prevent a breach of the prohibition in paragraph (2).

(8) In paragraph (4)(c), “enactment” has the meaning given by section 54(6) of the Act.

Designation of persons named by or under UN Security Council Resolutions

10

(1) Each person for the time being named for the purposes of paragraph 8(d) of resolution 1718 by the Security Council or the Committee is a designated person for the purposes of—

(a) regulations 13 to 17 (asset-freeze etc.) (whose purposes include compliance with the UN obligation mentioned in regulation 4(3)(a)) and regulations 23 (closure of representative offices) and 24 (business arrangements with designated persons) (whose purposes include compliance with the UN obligations mentioned in regulation 4(3)(e)),

(b) regulations 58 and 59 (services relating to ships and aircraft) (whose purposes include compliance with the UN obligations mentioned in regulation 4(3)(i)), and

(c) regulation 71 (ships: prohibition on port entry) (whose purposes include compliance with the UN obligation mentioned in regulation 4(3)(j)).

(2) Nothing in this regulation affects the power under regulation 5 to designate persons (in addition to those designated by this regulation) for the purposes of any of the regulations mentioned in paragraph (1).

PART 3 — Specification of ships

Specification of ships

11

(1) The Secretary of State may specify ships within the meaning of section 7 of the Act for the purposes of—

(a) regulation 29 (insurance and reinsurance services in relation to ships),

(b) regulation 60 (ship classification services),

(d) regulation 72 (directions prohibiting port entry),

(e) regulation 73 (movement of ships),

(f) regulation 75 (detention of ships), and

(g) regulation 77 (registration of ships in the United Kingdom).

(2) The Secretary of State may specify a ship which is a naval, military or air-force ship of any country for the purposes of any regulation mentioned in paragraph (1)(a), (b) or (c).

(3) The Secretary of State must specify a ship by its International Maritime Organization number or, where it is not reasonably practicable to identify it by that number, by any other means that the Secretary of State considers appropriate.

(4) The Secretary of State may not specify a ship unless the Secretary of State—

(a) has reasonable grounds to suspect that the ship is, has been, or is likely to be, involved in a relevant activity, and

(b) considers that it is appropriate for that ship to be specified, having regard to the purposes stated in regulation 4.

(5) For the purposes of this regulation a ship is “involved in a relevant activity” if—

(a) the ship carries prohibited goods;

(b) the ship carries frozen funds or goods;

(c) the ship is used to transfer any thing to a ship carrying prohibited goods or frozen funds or goods, or is used in contravention of regulation 74 (DPRK ships: transfers of goods);

(d) funds or goods carried on the ship are made available to a person in contravention of—

(i) any provision of Chapter 1 of Part 4 (finance: asset-freeze etc.), or

(ii) any provision of the law of a country other than the United Kingdom made for purposes corresponding to a purpose of a provision within that Chapter;

(e) a person deals with the ship, or the ship is made available to a person, in contravention of, or where the dealing or making available enables or facilitates the contravention of—

(i) any provision of Part 4 (Finance),

(ii) any provision of Part 6 (Trade),

(iii) the prohibition in regulation 70 (dealing with UN-designated ships subject to asset-freeze), or

(iv) any provision of the law of a country other than the United Kingdom made for purposes corresponding to a purpose of a provision within any of paragraphs (i) to (iii);

(f) the ship moves at sea in contravention of—

(i) a prohibition in regulation 71 (prohibition on port entry),

(ii) a direction under regulation 72 (directions prohibiting port entry),

(iii) a direction under regulation 73 (movement of ships),

(iv) a direction under regulation 75 (detention of ships), or

(v) any provision of the law of a country other than the United Kingdom made for purposes corresponding to a purpose of a provision within any of paragraphs (i) to (iv); or

(g) the ship is otherwise used for any activity whose object or effect is to contravene or circumvent, or to enable or facilitate the contravention or circumvention of, any relevant DPRK-related provisions, in particular—

(i) by carrying any thing,

(ii) by transporting any individual, or

(iii) as the place where any thing is done.

(6) In paragraph (5) “prohibited goods” means goods dealt with in contravention of—

(a) a prohibition—

(i) in any of regulations 35 to 38 (trade sanctions relating to restricted goods),

(ii) in any of regulations 43 to 52 (trade sanctions relating to goods other than restricted goods), or

(iii) imposed by a condition of a trade licence in relation to a prohibition mentioned in paragraph (i) or (ii);

(b) any provision of the law of a country other than the United Kingdom made for purposes corresponding to a purpose of a prohibition within sub-paragraph (a).

(7) In paragraph (5) “frozen funds or goods” means funds or goods whose carriage on the ship amounts to a contravention of, or enables or facilitates a contravention of—

(a) the prohibition in regulation 13 (asset-freeze);

(b) any provision of the law of a country other than the United Kingdom made for purposes corresponding to a purpose of that regulation.

(8) The reference in paragraph (5)(e) to a person who “deals” with a ship is to be construed in accordance with regulation 70.

(9) In paragraph (5) a “relevant DPRK-related provision” means—

(a) any provision of Part 4 or Parts 6 to 8;

(b) any provision of the law of a country other than the United Kingdom made for purposes corresponding to a purpose of any provision of Part 4 or Parts 6 to 8;

Notification and publicity where specification power used

12

(1) Paragraph (2) applies where the Secretary of State—

(a) has specified a ship under regulation 11(1) or (2), or

(b) has by virtue of section 26 of the Act revoked a specification made under that regulation.

(2) The Secretary of State—

(a) must without delay take such steps as are reasonably practicable to inform such persons as the Secretary of State considers appropriate of the specification or revocation, and

(b) except where one or more of the restricted publicity conditions is met, must take steps to publicise the specification or revocation generally.

(3) The “restricted publicity conditions” are that the Secretary of State considers that disclosure of the specification or revocation should be restricted—

(a) in the interests of national security or international relations,

(b) for reasons connected with the prevention or detection of serious crime in the United Kingdom or elsewhere, or

(4) Paragraph (5) applies if—

(a) when a specification is made one or more of the restricted publicity conditions is met, but

(b) at any time when the specification has effect, it becomes the case that none of the restricted publicity conditions is met.

(5) The Secretary of State must take steps to publicise the specification generally.

PART 4 — Finance

CHAPTER 1 — Asset-freeze etc.

Asset-freeze in relation to designated persons

13

(1) A person (“P”) must not deal with funds or economic resources owned, held or controlled by a designated person if P knows, or has reasonable cause to suspect, that P is dealing with such funds or economic resources.

(2) Paragraph (1) is subject to Part 9 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(4) For the purposes of paragraph (1) a person “deals with” funds if the person—

(a) uses, alters, moves, transfers or allows access to the funds,

(b) deals with the funds in any other way that would result in any change in volume, amount, location, ownership, possession, character or destination, or

(5) For the purposes of paragraph (1) a person “deals with” economic resources if the person—

(a) exchanges the economic resources for funds, goods or services, or

(b) uses the economic resources in exchange for funds, goods or services (whether by pledging them as security or otherwise).

(6) The reference in paragraph (1) to funds or economic resources that are “owned, held or controlled” by a person includes, in particular, a reference to—

(a) funds or economic resources in which the person has any legal or equitable interest, regardless of whether the interest is held jointly with any other person and regardless of whether any other person holds an interest in the funds or economic resources;

(b) any tangible property (other than real property), or bearer security, that is comprised in funds or economic resources and is in the possession of the person.

(7) For the purposes of paragraph (1) funds or economic resources are to be treated as owned, held or controlled by a designated person if they are owned, held or controlled by a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

(8) For the avoidance of doubt, the reference in paragraph (1) to a designated person includes P if P is a designated person.

Making funds available to designated person

14

(1) A person (“P”) must not make funds available directly or indirectly to a designated person if P knows, or has reasonable cause to suspect, that P is making the funds so available.

(2) Paragraph (1) is subject to Part 9 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(4) The reference in paragraph (1) to making funds available indirectly to a designated person includes, in particular, a reference to making them available to a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

Making funds available for benefit of designated person

15

(1) A person (“P”) must not make funds available to any person for the benefit of a designated person if P knows, or has reasonable cause to suspect, that P is making the funds so available.

(2) Paragraph (1) is subject to Part 9 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(3A) The reference in paragraph (1) to making funds available to any person for the benefit of a designated person includes making funds available for the benefit of a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person (and references to designated person in paragraph (4) are to be read accordingly).

(4) For the purposes of this regulation—

(a) funds are made available for the benefit of a designated person only if that person thereby obtains, or is able to obtain, a significant financial benefit, and

(b) “financial benefit” includes the discharge (or partial discharge) of a financial obligation for which the designated person is wholly or partly responsible.

Making economic resources available to designated person

16

(1) A person (“P”) must not make economic resources available directly or indirectly to a designated person if P knows, or has reasonable cause to suspect—

(a) that P is making the economic resources so available, and

(b) that the designated person would be likely to exchange the economic resources for, or use them in exchange for, funds, goods or services.

(2) Paragraph (1) is subject to Part 9 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(4) The reference in paragraph (1) to making economic resources available indirectly to a designated person includes, in particular, a reference to making them available to a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person.

Making economic resources available for benefit of designated person

17

(1) A person (“P”) must not make economic resources available to any person for the benefit of a designated person if P knows, or has reasonable cause to suspect, that P is making the economic resources so available.

(2) Paragraph (1) is subject to Part 9 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(3A) The reference in paragraph (1) to making economic resources available to any person for the benefit of a designated person includes making economic resources available for the benefit of a person who is owned or controlled directly or indirectly (within the meaning of regulation 7) by the designated person (and references to designated person in paragraph (4) are to be read accordingly).

(4) For the purposes of paragraph (1)—

(a) economic resources are made available for the benefit of a designated person only if that person thereby obtains, or is able to obtain, a significant financial benefit, and

(b) “financial benefit” includes the discharge (or partial discharge) of a financial obligation for which the designated person is wholly or partly responsible.

CHAPTER 2 — Investment, financial services and financial markets

UK credit or financial institutions: accounts and correspondent banking relationships etc.

18

(1) A UK credit or financial institution must not—

(a) open a bank account with,

(b) establish a correspondent banking relationship with,

(d) take an ownership interest in,

a person falling within paragraph (2), if the UK credit or financial institution knows, or has reasonable cause to suspect, that the bank account, correspondent banking relationship or joint venture is with, or the ownership interest is in, a person falling within paragraph (2).

(2) The following persons fall within this paragraph—

(a) a credit or financial institution domiciled in the DPRK;

(b) a branch or subsidiary, wherever located, of a credit or financial institution domiciled in the DPRK;

(c) a credit or financial institution that is not domiciled in the DPRK but is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person domiciled in the DPRK.

(3) A UK credit or financial institution must not—

(a) open a representative office of that institution in the DPRK, or

(b) establish a branch or subsidiary of that institution in the DPRK.

(4) Paragraphs (1) and (3) are subject to Part 9 (Exceptions and licences).

(5) A person who contravenes a prohibition in paragraph (1) or (3) commits an offence.

UK credit or financial institutions: severance of existing financial relationships

19

(1) A UK credit or financial institution must—

(a) close any bank account with,

(b) terminate any correspondent banking relationship with,

(d) relinquish any ownership interest in,

a person falling within regulation 18(2).

(2) A UK credit or financial institution must—

(a) close any representative office of that institution in the DPRK; and

(b) close any branch or subsidiary of that institution in the DPRK.

(3) Paragraphs (1) and (2) are subject to Part 9 (Exceptions and licences).

(4) A person who fails to comply with a requirement in paragraph (1) or (2) commits an offence.

Opening of or taking up of business by a representative office, branch or subsidiary of DPRK credit or financial institution

20

(1) A person (“P”) must not—

(a) open a representative office or establish a branch or subsidiary in the United Kingdom of a person falling within regulation 18(2);

(b) enter into an arrangement for, or on behalf of, a person falling within regulation 18(2) which relates to the opening of a representative office or the establishment of a branch or subsidiary in the United Kingdom, if P knows, or has reasonable cause to suspect, that the arrangement is for, or on behalf of, such a person; or

(c) authorise the taking up and pursuit of business by a representative office, branch or subsidiary of a person falling within regulation 18(2), if the representative office, branch or subsidiary was not operational before 19 February 2013.

(2) Paragraph (1) is subject to Part 9 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence.

DPRK credit or financial institutions: branches, subsidiaries, and representative offices

21

(1) A person (“P”) must not operate or facilitate the operation of—

(a) a branch,

(b) a subsidiary, or

of a person falling within regulation 18(2) if P knows, or has reasonable cause to suspect, that the branch, subsidiary or representative office is a branch, subsidiary or representative office of such a person.

(2) Paragraph (1) is subject to Part 9 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence.

Acquisition or extension of ownership interest by a DPRK credit or financial institution

22

(1) A person falling within regulation 18(2) must not directly or indirectly acquire or extend a participation, or acquire any ownership interest, in a UK credit or financial institution.

(2) Paragraph (1) is subject to Part 9 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

Designated persons: closure of representative offices

23

(1) This regulation applies to a designated person which is not an individual, and which has a representative office in the United Kingdom.

(2) If the person was a designated person immediately before the relevant date, the person must close the office immediately.

(3) If the person was not a designated person immediately before the relevant date, the person must close the office within the period of 90 days beginning with the date on which the person became a designated person.

(4) Paragraphs (2) and (3) are subject to Part 9 (Exceptions and licences).

(5) A person who fails to comply with a requirement in paragraph (2) and (3)commits an offence.

(6) In this regulation, “the relevant date” means—

(a) where regulations under section 56 of the Act provide that this regulation comes into force at a specified time on a day, that time on that day;

(b) otherwise, the date on which this regulation comes into force.

Business arrangements with designated persons

24

(1) A person (“P”) must not participate, directly or indirectly, in business arrangements, including joint ventures, with a person who P knows to be, or has reasonable cause to suspect is—

(a) a designated person, or

(b) acting on behalf of or at the direction of a designated person.

(2) Paragraph (1) is subject to Part 9 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

Bank accounts for diplomatic missions etc.

25

(1) A UK credit or financial institution must not open a bank account for—

(a) a diplomatic mission or consular post of the DPRK, or

(b) a national of the DPRK who is a member of a diplomatic mission or consular post of the DPRK.

(2) Paragraph (1) is subject to Part 9 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

Investment and commercial activities

26

(1) A person (“P”) must not accept or approve investment in a commercial activity which P knows, or has reasonable cause to suspect, is investment made by—

(a) the Government of the DPRK or any member of that Government;

(b) the Worker's Party of Korea;

(d) a person, other than an individual, which is incorporated or constituted under the law of the DPRK;

(e) a person acting on behalf of or at the direction of a person falling within any of sub-paragraphs (a) to (d); or

(f) a person, other than an individual, which is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person falling within any of sub-paragraphs (a) to (d).

(2) A person (“P”) must not directly or indirectly provide financial services to, or make funds available to, any person falling within paragraph 1(a), (b) or (d) to (f) if P knows, or has reasonable cause to suspect, that P is so providing the financial services or making the funds so available.

(3) A person (“P”) must not establish, maintain or operate a joint venture or a co-operative entity with—

(a) a person falling within paragraph (1)(a) to (f), or

(b) a person, other than an individual, which is domiciled in the DPRK,

if P knows or has reasonable cause to suspect that P is so doing.

(4) A person (“P”) must not take, acquire , maintain or extend any ownership interest in—

(a) a person falling within paragraph 1(a), (b) or (d) to (f), or

(b) a person , other than an individual, which is domiciled in the DPRK,

if P knows or has reasonable cause to suspect that P is so doing.

(5) A person (“P”) must not take, acquire, maintain or extend any ownership interest in activities or assets in the DPRK if P knows, or has reasonable cause, to suspect that P is so doing.

(6) A person (“P”) must not provide financial services directly or indirectly related to any activity that is prohibited by paragraphs (2) to (5) if P knows, or has reasonable cause to suspect, that P is so doing.

(7) Subject to paragraph (8), a person must close any joint ventures or co-operative entities with a person falling within paragraph (1)(a) to (f) or with a person, other than an individual, which is domiciled in the DPRK.

(8) Where a person has directly or indirectly requested approval for a joint venture or co-operative entity from the Committee, that person is not obliged to close that joint venture or co-operative entity—

(a) while no decision has yet been taken by the Committee, or

(b) if the Committee has denied the request for approval, until the end of the period of 120 days beginning with the date on which the Committee denied the request.

(9) Paragraphs (1) to (7) are subject to Part 9 (Exceptions and licences).

(10) A person who contravenes a prohibition in paragraphs (1) to (6) commits an offence.

(11) A person who fails to comply with the requirement in paragraph (7) commits an offence.

Land

27

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Transfers of funds etc.

28

(1) A person must not make or receive a transfer of funds which that person knows or has reasonable cause to suspect is a transfer of funds to or from the DPRK.

(2) A UK credit or financial institution must not enter into, or continue to participate in, any transaction with a person who the institution knows or has reasonable cause to suspect to be a person falling within regulation 18(2).

(3) Paragraphs (1) and (2) are subject to Part 9 (Exceptions and licences).

(4) A person who contravenes a prohibition in paragraph (1) or (2) commits an offence.

(5) In this regulation the reference to a transfer of funds includes the clearing of funds.

Insurance and reinsurance services in relation to ships

29

(1) A person (“P”) must not provide insurance or reinsurance services in relation to a ship if P knows, or has reasonable cause to suspect, that P is providing such services in relation to a ship that is—

(a) owned, controlled or operated by a person connected with the DPRK;

(b) a specified ship;

(d) a ship flying the flag of the DPRK.

(2) Paragraph (1) is subject to Part 9 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence.

(4) For the purposes of paragraph (1), the reference to a ship being “owned” or “controlled” by a person is to be interpreted in accordance with regulation 80.

(5) In this regulation—

“ship” includes every description of vessel (including a hovercraft) used in navigation;

“specified ship” means a ship specified by the Secretary of State under regulation 11(1) or (2).

Sale or purchase of bonds

30

(1) A person (“P”) must not directly or indirectly—

(a) sell to a person falling within paragraph (4), or

(b) purchase from such a person,

public bonds or public-guaranteed bonds issued after 19 February 2013 if P knows, or has reasonable cause to suspect, that the sale or purchase of such bonds is directly or indirectly to or from such a person.

(2) A person (“P”) must not provide brokering services to a person falling within paragraph (4) in respect of public bonds or public-guaranteed bonds issued after 19 February 2013, if P knows, or has reasonable cause to suspect, that the person falls within paragraph (4).

(3) A person (“P”) must not provide—

(a) brokering services,

(b) advertising services, or

if P knows, or has reasonable cause to suspect, that the provision of the services assists a person falling within paragraph (4) to issue public bonds or public-guaranteed bonds.

(4) The following persons fall within this paragraph—

(a) the Government of the DPRK;

(b) the Central Bank of the DPRK;

(d) a person acting on behalf of or at the direction of a person falling within sub-paragraph (a) or (b);

(e) a person, other than an individual, which is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person falling within any of sub-paragraphs (a) to (c).

(5) Paragraphs (1) to (3) are subject to Part 9 (Exceptions and licences).

(6) A person who contravenes a prohibition in paragraph (1), (2) or (3) commits an offence.

CHAPTER 3 — Interpretation and further provision

Circumventing etc. prohibitions

31

(1) A person must not intentionally participate in activities knowing that the object or effect of them is, whether directly or indirectly—

(a) to circumvent any of the prohibitions in Chapter 1 or 2 of this Part, or

(b) to enable or facilitate the contravention of any such prohibition.

(2) A person who contravenes a prohibition in paragraph (1) commits an offence.

Meaning of “designated person” in Part 4

32

In this Part a “designated person” means—

(a) a person who is designated under regulation 5 for the purposes of—

(i) regulations 13 to 17 (asset-freeze etc.), and

(ii) regulations 23 (closure of representative offices) and 24 (business arrangements with designated persons), or

(b) a person who is a designated person for the purposes of those regulations by reason of regulation 10.

Interpretation of Part 4

33

(1) In this Part—

“branch” means—in relation to a UK credit or financial institution, a place of business which forms a legally dependent part of that institution and which carries out all or some of the transactions inherent in the business of that institution, orin relation to a credit or financial institution domiciled in the DPRK, a place of business which forms a legally dependent part of that institution and which carries out all or some of the transactions inherent in the business of that institution;

“credit or financial institution domiciled in the DPRK” means—a person, other than an individual, which is domiciled in the DPRK and which would satisfy the threshold conditions for permission under Part 4A of the Financial Services and Markets Act 2000 if it had its registered office (or if it does not have one, its head office) in the United Kingdom; oran undertaking domiciled in the DPRK which by way of business—operates a currency exchange office,transmits money (or any representation of monetary value) by any means, orcashes cheques that are made payable to customers;

“subsidiary” has the meaning given by section 1159 of the Companies Act 2006 ;

“UK credit or financial institution” means—a person that has permission under Part 4A of the Financial Services and Markets Act 2000 (permission to carry on regulated activity); oran undertaking which by way of business—operates a currency exchange office,transmits money (or any representation of monetary value) by any means, orcashes cheques that are made payable to customers.

(2) In paragraph (1), the definitions of—

(a) “credit or financial institution domiciled in the DPRK”, and

(b) “UK credit or financial institution”,

are to be read with section 22 of the Financial Services and Markets Act 2000 , any relevant order under that section and Schedule 2 to that Act.

PART 5 — Immigration

Immigration

34

A person who is designated under regulation 5 for the purposes of this regulation is an excluded person for the purposes of section 8B of the Immigration Act 1971 .

PART 6 — Trade

Exports of restricted goods

35

(1) The export of restricted goods to, or for use in, the DPRK is prohibited.

(2) Paragraph (1) is subject to Part 9 (Exceptions and licences).

Imports of restricted goods

36

(1) The import of goods to which this paragraph applies which are consigned from the DPRK is prohibited.

(2) The import of goods to which this paragraph applies which originate in the DPRK is prohibited.

(3) Paragraphs (1) and (2) apply to—

(a) arms and related materiel,

(b) dual-use goods, and

(4) Paragraphs (1) and (2) are subject to Part 9 (Exceptions and licences).

(5) In this regulation, “arms and related materiel” means—

(a) military goods, and

(b) any thing which falls within Chapter 93 of the Goods Classification Table, other than military goods.

(6) For the purposes of the definition of “arms and related materiel” in paragraph (5)—

“the Goods Classification Table” means the table so named in Annex I in Part Three of the Tariff of the United Kingdom;

“the Tariff of the United Kingdom” means the document containing the legal classification and import rate for products being imported into the United Kingdom, entitled “The Tariff of the United Kingdom”, as revised or re-issued from time to time, including by any document published under regulations made under section 8(1) of the Taxation (Cross-border Trade) Act 2018 replacing the same in whole or in part.

Supply and delivery of restricted goods

37

(1) A person must not—

(a) directly or indirectly supply or deliver restricted goods from a third country to a place in the DPRK;

(b) directly or indirectly supply or deliver restricted goods from a place in the DPRK to a third country.

(2) Paragraph (1) is subject to Part 9 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but—

(a) it is a defence for a person charged with the offence of contravening paragraph (1)(a) to show that the person did not know and had no reasonable cause to suspect that the goods were destined (or ultimately destined) for the DPRK;

(b) it is a defence for a person charged with the offence of contravening paragraph (1)(b) to show that the person did not know and had no reasonable cause to suspect that the supply or delivery was from a place in the DPRK, whether directly or indirectly.

(4) In this regulation “third country” means a country that is not the United Kingdom, the Isle of Man or the DPRK.

Sale and purchase etc. of restricted goods and restricted technology

38

(1) A person must not—

(a) directly or indirectly make restricted goods or restricted technology available to a person connected with the DPRK;

(b) directly or indirectly make restricted goods or restricted technology available for use in the DPRK;

(d) directly or indirectly acquire restricted goods or restricted technology which originate in the DPRK;

(e) directly or indirectly acquire restricted goods or restricted technology located in the DPRK.

(2) Paragraph (1) is subject to Part 9 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but—

(a) it is a defence for a person charged with an offence of contravening paragraph (1)(a) or (c) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with the DPRK;

(b) it is a defence for a person charged with the offence of contravening paragraph (1)(b) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were for use in the DPRK;

(c) it is a defence for a person charged with the offence of contravening paragraph (1)(d) to show that the person did not know and had no reasonable cause to suspect that the goods or technology originated in the DPRK;

(d) it is a defence for a person charged with the offence of contravening paragraph (1)(e) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were located in the DPRK.

Transfer of restricted technology

39

(1) A person must not—

(a) transfer restricted technology to a place in the DPRK;

(b) transfer restricted technology to a person connected with the DPRK;

(c) transfer restricted technology to persons outside the United Kingdom or to a place outside the United Kingdom, where the transfer is from a place in the DPRK.

(2) Paragraph (1) is subject to Part 9 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but—

(a) it is a defence for a person charged with the offence of contravening paragraph (1)(a) to show that the person did not know and had no reasonable cause to suspect that the transfer was to a place in the DPRK;

(b) it is a defence for a person charged with the offence of contravening paragraph (1)(b) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with the DPRK;

(c) it is a defence for a person charged with the offence of contravening paragraph (1)(c) to show that the person did not know and had no reasonable cause to suspect that the transfer was from a place in the DPRK.

Technical assistance relating to restricted goods and restricted technology

40

(1) A person must not—

(a) directly or indirectly provide technical assistance relating to restricted goods or restricted technology—

(i) to a person connected with the DPRK, or

(ii) for use in the DPRK;

(b) directly or indirectly procure technical assistance relating to restricted goods or restricted technology—

(i) from a person connected with the DPRK, or

(ii) for use in the DPRK.

(2) Paragraph (1) is subject to Part 9 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but—

(a) it is a defence for a person charged with an offence of contravening paragraph (1)(a)(i) or (b)(i) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with the DPRK;

(b) it is a defence for a person charged with an offence of contravening paragraph (1)(a)(ii) or (b)(ii) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were for use in the DPRK.

Financial services and funds relating to restricted goods and restricted technology

41

(1) A person must not directly or indirectly provide financial services to a person connected with the DPRK in pursuance of or in connection with an arrangement whose object or effect is—

(a) the export of restricted goods,

(b) the direct or indirect supply or delivery of restricted goods,

(d) the transfer of restricted technology, or

(e) the direct or indirect provision of technical assistance relating to restricted goods or restricted technology.

(2) A person must not directly or indirectly make funds available to a person connected with the DPRK in pursuance of or in connection with an arrangement mentioned in paragraph (1).

(3) A person must not directly or indirectly provide financial services or funds in pursuance of or in connection with an arrangement whose object or effect is—

(a) the export of restricted goods to, or for use in, the DPRK;

(b) the direct or indirect supply or delivery of restricted goods to a place in the DPRK;

(i) to a person connected with the DPRK, or

(ii) for use in the DPRK;

(d) the transfer of restricted technology—

(i) to a person connected with the DPRK, or

(ii) to a place in the DPRK; or

(e) the direct or indirect provision of technical assistance relating to restricted goods or restricted technology—

(i) to a person connected with the DPRK, or

(ii) for use in the DPRK.

(4) A person must not directly or indirectly procure financial services from a person connected with the DPRK in pursuance of or in connection with an arrangement mentioned in paragraph (1).

(5) A person must not directly or indirectly procure financial services in pursuance of or in connection with an arrangement mentioned in paragraph (3).

(6) Paragraphs (1) to (5) are subject to Part 9 (Exceptions and licences).

(7) A person who contravenes a prohibition in any of paragraphs (1) to (5) commits an offence, but—

(a) it is a defence for a person charged with an offence of contravening paragraph (1), (2) or (4) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with the DPRK;

(b) it is a defence for a person charged with the offence of contravening paragraph (3) to show that the person did not know and had no reasonable cause to suspect that the financial services or funds (as the case may be) were provided in pursuance of or in connection with an arrangement mentioned in that paragraph;

(c) it is a defence for a person charged with the offence of contravening paragraph (5) to show that the person did not know and had no reasonable cause to suspect that the financial services were procured in pursuance of or in connection with an arrangement mentioned in paragraph (3).

Brokering services: non-UK activity relating to restricted goods and restricted technology

42

(1) A person must not directly or indirectly provide brokering services to a person connected with the DPRK in relation to an arrangement (“arrangement A”) whose object or effect is—

(a) the direct or indirect supply or delivery of restricted goods from a non-UK country to a different non-UK country,

(b) directly or indirectly making restricted goods available in a non-UK country for supply or delivery to a different non-UK country,

(c) directly or indirectly making restricted technology available in a non-UK country for transfer to a place in a different non-UK country,

(d) the direct or indirect acquisition, in a non-UK country, of restricted goods, for supply or delivery to a different non-UK country,

(e) the direct or indirect acquisition, in a non-UK country, of restricted technology, for transfer to a place in a different non-UK country,

(f) the transfer of restricted technology from a place in a non-UK country to a place in a different non-UK country,

(g) the direct or indirect provision, in a non-UK country, of technical assistance relating to restricted goods or restricted technology,

(h) the direct or indirect procurement from a non-UK country of technical assistance relating to restricted goods or restricted technology,

(i) the direct or indirect provision of financial services in a non-UK country, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 41(1),

(j) the direct or indirect procurement of financial services from a non-UK country, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 41(1), or

(k) the direct or indirect provision of funds from a non-UK country, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 41(1).

(2) A person must not directly or indirectly provide brokering services in relation to an arrangement (“arrangement A”) whose object or effect is—

(a) the direct or indirect supply or delivery of restricted goods from a third country to a place in the DPRK;

(b) directly or indirectly making restricted goods available in a third country for direct or indirect supply or delivery—

(i) to a person connected with the DPRK, or

(ii) to a place in the DPRK;

(i) to a person connected with the DPRK, or

(ii) to a place in the DPRK;

(d) the transfer of restricted technology from a place in a third country—

(i) to a person connected with the DPRK, or

(ii) to a place in the DPRK;

(e) the direct or indirect provision, in a non-UK country, of technical assistance relating to restricted goods or restricted technology—

(i) to a person connected with the DPRK, or

(ii) for use in the DPRK;

(f) the direct or indirect provision, in a non-UK country, of financial services—

(i) to a person connected with the DPRK, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 41(1), or

(ii) where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 41(3);

(g) directly or indirectly making funds available, in a non-UK country, to a person connected with the DPRK, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 41(1); or

(h) the direct or indirect provision of funds from a non-UK country, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 41(3).

(3) Paragraphs (1) and (2) are subject to Part 9 (Exceptions and licences).

(4) A person who contravenes a prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with the DPRK.

(5) A person who contravenes a prohibition in paragraph (2) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect that the brokering services were provided in relation to an arrangement mentioned in that paragraph.

(6) In this regulation—

“non-UK country” means—for the purposes of paragraph (1)(a), (b) and (d), a country that is not the United Kingdom or the Isle of Man,for the purposes of any other provision of this regulation, a country that is not the United Kingdom;

“third country” means—for the purposes of paragraph (2)(a) and (b), a country that is not the United Kingdom, the Isle of Man or the DPRK,for the purposes of any other provision of this regulation, a country that is not the United Kingdom or the DPRK.

CHAPTER 2 — Other goods, technology , services and land

Goods and technology for armed forces of the DPRK

43

(1) The export of goods to or for the benefit of the armed forces of the DPRK is prohibited.

(2) A person must not—

(a) directly or indirectly supply or deliver goods from a third country to or for the benefit of the armed forces of the DPRK;

(b) directly or indirectly make goods or technology available to or for the benefit of the armed forces of the DPRK;

(3) Paragraphs (1) and (2) are subject to Part 9 (Exceptions and licences).

(4) A person who contravenes a prohibition in paragraph (2) commits an offence, but—

(a) it is a defence for a person charged with the offence of contravening paragraph (2)(a) to show that the person did not know and had no reasonable cause to suspect that it was the armed forces of the DPRK to which, or for the benefit of which, the goods were supplied or delivered;

(b) it is a defence for a person charged with the offence of contravening paragraph (2)(b) to show that the person did not know and had no reasonable cause to suspect that it was the armed forces of the DPRK to which, or for the benefit of which, the goods or technology were made available;

(c) it is a defence for a person charged with the offence of contravening paragraph (2)(c) to show that the person did not know and had no reasonable cause to suspect that it was the armed forces of the DPRK to which, or for the benefit of which, the technology was transferred.

(5) In this regulation—

“goods” do not include food or medicine;

“third country” means a country that is not the United Kingdom, the Isle of Man or the DPRK.

Armed forces goods and technology

44

(1) The export of armed forces goods to the DPRK is prohibited.

(2) The import of armed forces goods which are consigned from the DPRK is prohibited.

(3) The import of armed forces goods which originate in the DPRK is prohibited.

(4) A person must not—

(a) directly or indirectly supply or deliver armed forces goods—

(i) from a third country to a place in the DPRK, or

(ii) from a place in the DPRK to a third country;

(b) directly or indirectly—

(i) acquire armed forces goods or armed forces technology from a person connected with the DPRK, or

(ii) make armed forces goods or armed forces technology available to a person connected with the DPRK;

(d) transfer armed forces technology to persons outside the United Kingdom or to a place outside the United Kingdom, where the transfer is from a place in the DPRK; or

(e) transfer armed forces technology to a place in the DPRK or to a person connected with the DPRK.

(5) Paragraphs (1) to (4) are subject to Part 9 (Exceptions and licences).

(6) A person who contravenes a prohibition in paragraph (4) commits an offence, but—

(a) it is a defence for a person charged with an offence of contravening a prohibition in any provision of paragraph (4) to show that the person did not know and had no reasonable cause to suspect that the goods were armed forces goods or (as the case may be) the technology was armed forces technology;

(b) it is a defence for a person charged with the offence of contravening paragraph (4)(a) to show that the person did not know and had no reasonable cause to suspect that the supply or delivery was to or from a place in the DPRK, whether directly or indirectly;

(c) it is a defence for a person charged with the offence of contravening paragraph (4)(b) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with the DPRK;

(d) it is a defence for a person charged with the offence of contravening paragraph (4)(c) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were located in the DPRK;

(e) it is a defence for a person charged with the offence of contravening paragraph (4)(d) to show that the person did not know and had no reasonable cause to suspect that the transfer was from a place in the DPRK;

(f) it is a defence for a person charged with the offence of contravening paragraph (4)(e) (“P”) to show that P did not know and had no reasonable cause to suspect either that the transfer was to a place in the DPRK or (as the case may be) that the person was connected with the DPRK.

(7) In this regulation—

“armed forces goods” means goods, except food or medicine, which could support or enhance the operational capability of the armed forces of any country other than the DPRK;

“armed forces technology” means technology which could support or enhance the operational capability of the armed forces of any country other than the DPRK;

“third country” means a country that is not the United Kingdom, the Isle of Man or the DPRK.

Exports of certain goods

45

(1) The export of the following goods to, or for use in, the DPRK is prohibited—

(a) aviation fuel;

(b) condensates and natural gas liquids;

(d) helicopters and vessels;

(e) industrial machinery, vehicles, iron, steel and other metals;

(f) luxury goods;

(g) refined petroleum products.

(2) Paragraph (1) is subject to Part 9 (Exceptions and licences).

Supply and delivery of certain goods to the DPRK

46

(1) A person must not directly or indirectly supply or deliver goods to which this paragraph applies from a third country to a place in the DPRK.

(2) Paragraph (1) applies to—

(a) aviation fuel;

(b) condensates and natural gas liquids;

(d) helicopters and vessels;

(e) industrial machinery, vehicles, iron, steel and other metals;

(f) luxury goods;

(g) refined petroleum products.

(3) Paragraph (1) is subject to Part 9 (Exceptions and licences).

(4) A person who contravenes the prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect that the goods were destined (or ultimately destined) for the DPRK.

(5) In this regulation “third country” means a country that is not the United Kingdom, the Isle of Man or the DPRK.

Sale etc. of certain goods

47

(1) A person must not—

(a) directly or indirectly make goods to which this paragraph applies available to a person connected with the DPRK;

(b) directly or indirectly make goods to which this paragraph applies available for use in the DPRK.

(2) Paragraph (1) applies to—

(a) aviation fuel;

(b) condensates and natural gas liquids;

(d) helicopters and vessels;

(e) industrial machinery, vehicles, iron, steel and other metals;

(f) luxury goods;

(g) refined petroleum products.

(3) Paragraph (1) is subject to Part 9 (Exceptions and licences).

(4) A person who contravenes a prohibition in paragraph (1) commits an offence, but—

(a) it is a defence for a person charged with the offence of contravening paragraph (1)(a) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with the DPRK;

(b) it is a defence for a person charged with the offence of contravening paragraph (1)(b) to show that the person did not know and had no reasonable cause to suspect that the goods were for use in the DPRK

Imports of certain goods

48

(1) The import of goods to which this paragraph applies which are consigned from the DPRK is prohibited.

(2) The import of goods to which this paragraph applies which originate in the DPRK is prohibited.

(3) Paragraphs (1) and (2) apply to—

(a) coal, iron and iron ore;

(b) copper, nickel, silver and zinc;

(d) food and agricultural products;

(e) gold ores and concentrates, titanium ore, vanadium ore and rare-earth minerals;

(f) lead and lead ore;

(g) luxury goods;

(h) machinery and electrical equipment;

(i) petroleum products;

(j) seafood;

(k) statues;

(l) textiles;

(m) vessels;

(n) wood.

(4) Paragraphs (1) and (2) are subject to Part 9 (Exceptions and licences).

Supply and delivery of certain goods from the DPRK

49

(1) A person must not directly or indirectly supply or deliver goods to which this paragraph applies from a place in the DPRK to a third country.

(2) Paragraph (1) applies to—

(a) coal, iron and iron ore;

(b) copper, nickel, silver and zinc;

(d) food and agricultural products;

(e) gold ores and concentrates, titanium ore, vanadium ore and rare-earth minerals;

(f) lead and lead ore;

(g) luxury goods;

(h) machinery and electrical equipment;

(i) petroleum products;

(j) seafood;

(k) statues;

(l) textiles;

(m) vessels;

(n) wood.

(3) Paragraph (1) is subject to Part 9 (Exceptions and licences).

(4) A person who contravenes the prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect that the supply or delivery was from a place in the DPRK, whether directly or indirectly.

(5) In this regulation “third country” means a country that is not the United Kingdom, the Isle of Man or the DPRK.

Purchase etc. of certain goods and rights

50

(1) A person must not—

(a) directly or indirectly acquire goods to which this paragraph applies from a person connected with the DPRK;

(b) directly or indirectly acquire goods to which this paragraph applies which originate in the DPRK;

(2) Paragraph (1) applies to—

(a) coal, iron and iron ore;

(b) copper, nickel, silver and zinc;

(d) food and agricultural products;

(e) gold ores and concentrates, titanium ore, vanadium ore and rare-earth minerals;

(f) lead and lead ore;

(g) luxury goods;

(h) machinery and electrical equipment;

(i) petroleum products;

(j) seafood;

(k) statues;

(l) textiles;

(m) vessels;

(n) wood.

(3) A person must not—

(a) directly or indirectly acquire or transfer fishing rights from a person connected with the DPRK; or

(b) directly or indirectly acquire or transfer fishing rights which are exercisable in DPRK waters.

(4) Paragraphs (1) and (3) are subject to Part 9 (Exceptions and licences).

(5) A person who contravenes a prohibition in paragraph (1) commits an offence, but—

(a) it is a defence for a person charged with the offence of contravening paragraph (1)(a) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with the DPRK;

Reading this document does not replace reading the official text published on legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. We assume no responsibility for any inaccuracies arising from the conversion of the original CLML XML to this format.

This text is published under legislation.gov.uk's own terms of reuse, not a Legalize or public-domain licence. legislation.gov.uk
Open Government Licence v3.0 (attribution required)
© Crown and database right. Derived from content available under the Open Government Licence v3.0 from legislation.gov.uk.