On 21 September, Treasury issued executive order to cut funding to N Korea.
Treasury Statement
- Said despite UN resolution, North Korean had continued to threaten the world.
- US Authorities target enablers of regime's economic activity, wherever located.
- Stated no bank in any country should be used to assist NK destructive behavior.
Bank Restrictions
- Prohibits export of goods, services including financial services and technology.
- Banks face sanction, including suspension of US correspondent account access.
- To foreign banks that knowingly conducts or facilitates significant transactions
which are tied to trade for North Korea, or relate to certain designated person. - Authority to block funds transiting accounts linked to Korea that come into US.
Effectiveness
- Stated foreign banks can choose to do business for US or N Korea, but not both.
- Sanctions will be forward-looking, and applied to conduct following date of EO.
- Anyone trading goods, service or technology, could be banned from US system.
- Block and freeze assets of actors supporting textile, fishing, IT, manufacturing.
- US person can not do business with entities in N. Korea, unless under a license.
OFAC Guidance
- OFAC issued FAQs, a new general license 10, and update of general license 3-A.
- License 10 on calling of certain vessels, and landing certain authorized aircraft.
