On October 21, 2016, the Government of Canada published amendments to its trade and economic sanctions against the Democratic People’s Republic of North Korea (“DPRK”) contained in the Regulations Implementing the United Nations Resolutions on the Democratic People’s Republic of Korea (DPRK) (the “Regulations”) made under the United Nations Act.
Amending the Regulations enables the Government of Canada to incorporate into Canadian law the additional sanctions measures adopted by the United Nations Security Council in Resolution 2270. Resolution 2270 was adopted on March 2, 2016 in response to the DPRK’s nuclear test conducted on January 6, 2016, and use of ballistic missile technology to launch a long-range rocket on February 7, 2016.
The additional sanctions measures contained in the amendments to the Regulations include the following:
- A ban on the sale, supply or transfer of aviation fuel destined for the DPRK or for any person in the DPRK (except for aviation fuel provided to a DPRK passenger aircraft for its return flight to the DPRK);
- A ban on the import, purchase or acquisition of coal, iron, iron ore, gold, titanium ore, vanadium ore and rare earth minerals from the DPRK or from any person in the DPRK;
- A ban on providing teaching or training to any national of the DPRK in disciplines which could contribute to proliferation-sensitive nuclear activities or the development of nuclear weapon delivery systems in the DPRK, including in advanced physics, advanced computer simulation and related computer sciences, geospatial navigation, nuclear engineering, aerospace engineering, aeronautical engineering and related disciplines;
- A ban on the provision, under lease or charter, of a Canadian-flagged vessel or aircraft, or crew services for such a vessel or aircraft;
- A ban on registering a vessel in the DPRK; obtaining authorization for a vessel to fly the DPRK flag; owning, leasing, operating or insuring any DPRK-flagged vessel; and providing any vessel classification, certification or related service for any DPRK-flagged vessel;
- The addition, to the list of entities that must determine on a continuing basis whether they are in possession or control of property that is owned, held or controlled by or on behalf of a designated person, of “persons and entities engaged in the business of foreign exchange dealing, of remitting funds or transmitting funds by any means or through any person, entity or electronic funds transfer network, or of issuing or redeeming money orders, traveller’s cheques or other similar negotiable instruments except for cheques payable to a named person or entity”, if the activity involves the opening of an account for a client;
- A new provision allowing a Canadian federal or provincial “official” to disclose personal information to the Minister of Foreign Affairs, who in turn may disclose personal information to the United Nations Security Council, the Panel of Experts established under Security Council Resolution 1874 or the Focal Point for De-listing;
- A ban on legal proceedings in Canada at the instance of the Government of the DPRK, any person in the DPRK, any designated person or any person claiming through or acting on behalf of any designated person, in connection with any contract or other dealing if its performance was prevented by the Regulations.
It is worth noting that Canada also imposes sanctions against the DPRK pursuant to regulations made under the Special Economic Measures Act (“SEMA”). Under SEMA, the Government of Canada has imposed broad trade embargoes, including in part bans on all imports from and exports to the DPRK, and a ban on investments in any entity in the DPRK that involve a dealing in any property, wherever situated, held by or on behalf of the DPRK, any person in the DPRK, or a national of the DPRK who does not ordinarily reside in Canada. The sanctions against the DPRK made under SEMA were not amended at this time.
The full text of the amendments can be found here: http://www.international.gc.ca/sanctions/countries-pays/korea_un_regulations-coree_onu_reglement.aspx?lang=eng.