The US has passed the Sanctions and Policy Enhancement Act of 2016 (H.R. 757), which maintains existing sanctions and additionally imposes more strict licensing requirements for the export or re-export to North Korea of any US origin goods, software, or technology, and imposes targeted sanctions on persons deemed to engage in certain types of activities related to North Korea’s nuclear proliferation, money laundering, as well as its efforts to undermine cyber security.
Separately, the United Nations is poised to impose additional sanctions against North Korea. The US and China have agreed to a draft resolution increasing UN sanctions against North Korea.
Under the Act, similar to the past secondary sanctions which were imposed with respect to Iran, the United States may impose sanctions on any individual or entity that has, or has attempted to, knowingly engage or assist in:
- Activities or transactions with the government of North Korea related to proliferation of weapons of mass destruction;
- Activities related to significant arms or related material;
- Import or export of luxury goods to or from North Korea;
- Censorship by the government of North Korea;
- Serious human rights abuses by the government of North Korea;
- Money laundering, counterfeiting, or narcotics trafficking involving or supporting the government of North Korea; or
- Significant activities undermining cyber security in support of the government of North Korea.
In addition, U.S. sanctions may be imposed on individuals or entities that have, or have attempted to, engage in, facilitate, or support:
- Transactions in violation of an applicable UN Security Council resolution; or
- Any conduct prohibited by the UN Security Council or a U.S. Executive Order.
- The knowing bribery of a North Korean official or the misappropriation or theft of public funds by or for the benefit of such an official.
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Source: The North of England P&I Club
