North Korea Sanctions Q&A
456. What does Executive Order (E.O.) 13722 do?
E.O. 13722 blocks the Government of North Korea and the Workers’ Party of Korea; prohibits the exportation and reexportation of goods, services (including financial services), and technology to North Korea; and prohibits new investment in North Korea. E.O. 13722 also adds new designation criteria, some of which are mandatory criteria from the North Korea Sanctions and Policy Enhancement Act of 2016. [09-21-2017]
457. Does Executive Order (E.O.) 13722 take into account United Nations Security Council Resolution (UNSCR) 2270 and domestic legislation?
Yes. E.O. 13722 implements certain U.S. obligations under UNSCR 2270 and certain provisions of Public Law No. 114-122, The North Korea Sanctions and Policy Enhancement Act of 2016. U.S. sanctions against North Korea are generally broader than UN sanctions. [09-21-2017.]
458. Does the blocking of the Government of North Korea and the Workers’ Party of Korea impact the ability of U.S. persons to do business with or conduct transactions with entities in which either party has an interest?
Yes. All property and interests in property of the Government of North Korea and the Workers’ Party of Korea are blocked. U.S. persons are generally prohibited from engaging in transactions with them without authorization from OFAC and must block property or interests in property that are in, or come within, the United States or the possession of a U.S. person. [03-16-2016]
459. What impact does the prohibition on the exportation or reexportation of goods, services, or technology under Executive Order (E.O.) 13722 have on the regulations of the Department of Commerce’s Bureau of Industry and Security (BIS)?
None. E.O. 13722 prohibits the exportation or reexportation, from the United States, or by a United States person, of any goods, services, or technology to North Korea. BIS maintains authority to license exports and reexports of goods and technology subject to the Export Administration Regulations to persons who are not Specially Designated National (SDNs) and involving the Government of North Korea and the Workers’ Party of Korea. In most instances, to export to designated individuals and entities, U.S. persons must obtain a license from both OFAC and BIS. Regulated financial entities processing a transaction in accordance with a BIS license may want to request a copy of the license to ensure the transaction meets the terms, conditions, and criteria of the BIS license. [09-21-2017]
460. Can U.S. persons do business with entities in North Korea?
No. Unless authorized pursuant to a general or specific license from OFAC and/or BIS, Executive Order 13722 prohibits new investment in North Korea by a U.S. person and the exportation or reexportation, from the United States, or by a U.S. person, of any goods, services, or technology to North Korea. the new E.O. Imposing Additional Sanctions with Respect to North Korea does not modify any of those prohibitions. [09-21-2017]
461. Has OFAC issued general licenses for the North Korea program?
Yes. See the OFAC’s webpage on North Korea for the general licenses. [09-21-2017]
462. Can U.S. persons continue to send money to family or friends in North Korea?
Yes. OFAC General License No. 4 authorizes U.S. depository institutions, including banks, and U.S.-registered money transmitters, to process non-commercial, personal remittances to or from North Korea, or for or on behalf of an individual ordinarily resident in North Korea. Such transactions do not require further authorization from OFAC. [03-16-2016]
463. Can nongovernmental organizations (NGOs) provide assistance to North Korea?
Yes. Per General License No. 5, NGOs are authorized to export or reexport services to North Korea that would otherwise be prohibited by Executive Order 13722 in support of the following activities: (1) activities to support humanitarian projects to meet basic human needs in North Korea, including drought and flood relief, food, nutrition, and medicine distribution, the provision of health services, assistance for individuals with disabilities, and environmental programs; (2) activities to support democracy building in North Korea, including rule of law, citizen participation, government accountability, universal human rights and fundamental freedoms, access to information, and civil society development projects; (3) activities to support education in North Korea, including combating illiteracy, increasing access to education, international exchanges, and assisting education reform projects; (4) activities to support non-commercial development projects directly benefiting the North Korean people, including preventing infectious disease and promoting maternal/child health, sustainable agriculture, and clean water assistance; and (5) activities to support environmental protection, including the preservation and protection of threatened or endangered species and the remediation of pollution or other environmental damage. Additionally, U.S. depository institutions, U.S.-registered brokers or dealers in securities, and U.S.-registered money transmitters are authorized to process transfers of funds on behalf of U.S. or third-country NGOS to or from North Korea in support of the activities identified above. Executive Order 13810 does not modify any of those authorizations.
General License No. 5 does not authorize transactions with the Government of North Korea or other blocked persons, except for limited transactions with the Government of North Korea that are necessary for the above-described activities, such as payment of taxes and other fees. [09-21-2017]
*For guidance on specific questions with respect to charitable donations, NGOs, and the scope of General License No. 5, please reach out to OFAC. Contact information may be found here.
464. Can I travel to North Korea?
No. While OFAC sanctions do not prohibit U.S. persons from traveling to or from North Korea, the Department of State imposed a Geographical Travel Restriction for U.S. citizens’ travel to North Korea on September 1, 2017. We recommend consulting the State Department’s Travel Warning on North Korea for additional information. [09-21-2017]
465. What is an example of a person who forms part of the household of an employee of the official mission of the Government of North Korea or of an employee of the United Nations?
General License No. 1 authorizes the provision of goods or services in the United States to employees of the official mission of the Government of North Korea to the United Nations or employees of the United Nations, their families, or other persons forming part of their household. Persons forming part of their household could include spouses, domestic partners, and dependent children. [09-21-2017]
525. How does Executive Order (E.O.) 13810 change the current sanctions regime?
E.O. 13810 provides the Secretary of the Treasury, in consultation with the Secretary of State, additional tools to disrupt North Korea’s ability to fund its weapons of mass destruction (WMD) and ballistic missile programs. Specifically, the Executive order: (1) establishes several new designation criteria; (2) prohibits vessels and aircraft that have called or landed at a port or place in North Korea in the previous 180 days, and vessels that engaged in a ship-to-ship transfer with such a vessel in the previous 180 days, from entering the United States; (3) provides authority to block any funds transiting accounts linked to North Korea that come within the United States or possession of a United States person; and (4) provides authority to impose sanctions on a foreign financial institution that knowingly conducted or facilitated, on or after the date of the order (i) any significant transaction on behalf of certain blocked persons or (ii) any significant transaction in connection with trade with North Korea. The sanctions applicable to foreign financial institutions can be restrictions on correspondent or payable-through accounts or full blocking sanctions.
OFAC is issuing new General License 10 to allow, among others things, vessels in distress to call at a port and aircraft to make emergency landings. The general licenses previously issued with E.O. 13722 do not apply to transactions prohibited by E.O. 13810, except for General Licenses 2 and 9 with respect to legal services and emergency medical services, respectively. OFAC is also updating General License 3 to account for E.O. 13810. [9-21-2017]
526. How does the Secretary of the Treasury make a determination about foreign bank accounts mentioned in Executive Order (E.O) 13810? How are U.S. persons expected to implement?
Section 3 of E.O. 13810 authorizes the Secretary of the Treasury to determine that a North Korean person owns, controls, or has used a foreign bank account, and to require the blocking of funds that originate from, are destined for, or pass through that account. OFAC will provide appropriate notice and additional guidance, as necessary, to clarify its expectations for implementation. Absent such a determination and notice from Treasury, this provision does not create any immediate compliance obligations on U.S. persons. [9-21-2017]
Source: https://www.treasury.gov/resource-center/faqs/Sanctions/Pages/faq_other.aspx#nk