President Trump’s executive order authorizes the Treasury Dept. to enforce economic sanctions against foreign companies, financial institutions and individuals that do business with North Korea.
A new executive order signed Thursday by President Trump significantly extends the reach of U.S. economic sanctions on North Korea to include persons – that is, entities such as companies as well as individuals – that are determined by the U.S. Treasury Dept., in consultation with the State Dept.:
- to operate in North Korea’s construction, energy, financial services, fishing, information technology, manufacturing, medical, mining, textiles, or transportation industries;
- to own, control, or operate any sea, air or land port of entry in North Korea;
- have engaged in at least one significant import or expert transaction in goods, services or technology with North Korea;
- to be a North Korean person, including a North Korean person that has engaged in commercial activity that generates revenue for the Government of North Korea or the Workers’ Party of Korea;
- 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 under this executive order; or
- 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.
The U.S. initiated its North Korea sanctions with Executive Order 13466 issued June 26, 2008.
The North Korea sanctions include the freezing of any assets these persons possess or control that are in or may come into the United States. Relief donations of items such as food, clothing, and medicine to these persons are prohibited. No vessel or aircraft in which a foreign person has an interest that has landed in North Korea is permitted to land in the U.S. within 180 days after departing from North Korea.
The order authorizes the Treasury Dept. to enforce sanctions against foreign financial institutions found to have knowingly conducted or facilitated any transaction on behalf of persons subject to the current or previous executive orders (EO 13551, 13687, 13722), or any trade with North Korea, effective from September 21.
Extremely limited exemptions are carved out by General License Nos. 3-A and 10 (e.g., for a vessel that calls at a North Korean port because it is in distress).
Descartes MK Denied Party ScreeningTM solutions can help companies comply with current economic sanctions programs and screen potential business partners against the list of Specially Designated Nationals (SDN) subject to sanctions maintained by Treasury’s Office of Foreign Assets Control (OFAC). To learn more, click here – or just ask us.