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SAFETY4SEA

Update on sanctions against North Korea

by The Editorial Team
May 4, 2020
in Security
sanctions against north korea
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The UK P&I Club issued an updated circular on the Democratic People’s Republic of Korea (DPRK) sanctions enforcement, following a previous circular in 2019. The update includes the recent 2019/2020 UN Panel of Experts of North Korea Sanctions Report, published by the UN Security Council in March 2020.

The report notes that the DPRK regime has not taken steps to end its nuclear programme, which continues in violation of UN Security Council resolutions. The regime has continued to raise revenue for its ballistic missile programme through the illicit import of refined petroleum and export of commodities such as sand and coal and maritime is key for facilitating this revenue stream.

As such, UN and national enforcement agencies strongly advised shipowners to “take note that sanctions monitoring and surveillance continues at a pace and through the co-operation of UN Member States more evidence is being collated and reported where there has been such a breach”.

In particular, continuing its use of non-DPRK flagged vessels to perform illicit STS cargo transfers at sea, North Korea has changed its trading methods to evade detection in international waters and subsequent delivery of unlawful cargo direct to Nampo.

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Such vessels have conducted operations several times over before they are detected. These operations have amounted to the DPRK receiving almost three times the UN specified total cap of 500,000 barrels of refined petroleum.

With the assistance of a UN Member State, 14 vessels were designated, though none are entered with an IG Club.

To conceal the true identification of the ownership, most of the vessels’ registered owners were dissolved or struck off company registers or were operating under false or fraudulent flags.

In response, the Panel noted the need for regulators, enforcement agencies and the maritime industry to remain vigilant and maintain proper and effective due diligence. Tanker operators in particular should make every effort to confirm the true intended destination of cargoes carried onboard.

The report notes that the DPRK is continuously innovating and adapting to avoid detection of its activities and a further trend reported by the Panel was the exploitation of the scrap vessel market where onward sale of vessels of larger bulk carriers (destined for scrap) were being used to transfer coal, as opposed to the previous use of smaller vessels.

The penalties for performing activities with a DPRK nexus could result in designation, asset freezing and listing by the UN, OFAC and other enforcement agencies.

Any trade with a North Korea nexus will be subject to surveillance and scrutiny by monitoring agencies, including vessel movements, using AIS and long range identification tracking, satellite imagery and other assets.

Vessels suspected of breaching sanctions against North Korea may be listed by national authorities and/or subject to search and detained at ports whilst investigations are carried out.

Any activity assessed to be in breach of sanctions will result in the withdrawal of insurance cover. Even if it were possible to undertake legitimate trade with North Korea and North Korean interests, Members should consider that an International Group Club is unlikely to be able to support vessels trading to North Korean ports, with payment of claims and fees and the provision of security liable to be delayed and perhaps completely prohibited,

…the UK Club advised.

As such, all ship owners and operators should take care to avoid knowingly or inadvertently engaging in activities prohibited by sanctions against North Korea.

Tags: north koreaUN Sanctions

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