North Korea Sanctions
The Office of Foreign Assets Control (OFAC) is a critical agency within the U.S. Department of the Treasury, responsible for administering and enforcing economic and trade sanctions based on U.S. foreign policy and national security goals. These sanctions are designed to target specific foreign countries and regimes, individuals, and entities engaged in activities that threaten the security and stability of the United States and its allies. Among the various OFAC sanctions programs, the sanctions against North Korea are particularly stringent, aimed at curbing the regime’s nuclear ambitions and addressing its human rights violations.
Sanctions lawyers are experts in ensuring that clients meet all regulatory requirements related to transactions with North Korea. Our Sanctions Lawyers can help you with the process of obtaining necessary licenses and authorizations from OFAC to ensure your business is legal.
Why did North Korea Face Sanctions?
US sanctions on North Korea were first imposed in the 1950s, tightening them further in the 1980s following international bombings carried out by North Korean agents. The sanctions were temporarily eased in the 1990s when South Korea pursued engagement policies, but North Korea’s withdrawal from the Nuclear Non-Proliferation Treaty in 2003 led to the reinstatement of various OFAC sanctions against North Korea.
North Korea has faced a series of international sanctions primarily due to its ongoing development of nuclear weapons and ballistic missile programs. These actions have repeatedly violated United Nations Security Council resolutions and posed significant threats to global security. Economic sanctions on North Korea aim to:
- deter the development and proliferation of nuclear weapons and missile technology;
- restrict the regime’s access to international financial systems;
- limit the import and export of goods, particularly those related to weapons development;
- target specific individuals and entities involved in the nuclear program.
Despite the US sanctions on North Korea, the country has continued to advance its missile technology and nuclear capabilities. The regime has become adept at evading sanctions through complex smuggling operations and illicit activities, which remain a significant challenge for the international community. However, the sanctions against North Korea undeniably impacted its economy, reducing its ability to generate revenue and maintain its nuclear program.
Updates on North Korea Sanctions
North Korea has continued to build closer ties with Russia, culminating in a “Treaty on Comprehensive Strategic Partnership” signed by Kim Jong-un and Vladimir Putin in June 2024. This treaty includes provisions for military and other assistance in case of war, and cooperation in various fields, including defense capabilities.
North Korea has intensified its military activities, including the transfer of missile launchers to the border with South Korea and the development of short-range weaponry designed to overwhelm missile defenses. In August 2024, Kim Jong-un oversaw the delivery of 250 new tactical ballistic missile launchers to frontline military units, emphasizing the need for enhanced military capabilities to address perceived threats from the United States.
In response to North Korea’s continued provocations, the US has sanctioned additional individuals and entities involved in the country’s illegal weapons programs and support for Russia’s war of aggression against Ukraine.
Importance of Executive Order
An executive order is a formal directive issued by the President of the United States to manage the operations of the federal government. These orders, such as those involving US sanctions on North Korea, are signed, written, and published documents that hold significant authority and impact. They are sequentially numbered and can be referenced by their assigned number or topic.
Executive Order 13722
Issued on March 16, 2016, EO 13722 blocks the property of the Government of North Korea and the Workers’ Party of Korea. It prohibits the exportation and reexportation of goods, services, and technology to North Korea, as well as new investments in the country. This order also implements certain obligations under United Nations Security Council Resolution 2270 and the North Korea Sanctions and Policy Enhancement Act of 2016.
Executive Order 13810
Signed on September 20, 2017, EO 13810 expands the scope of economic sanctions on North Korea by targeting foreign financial institutions that facilitate significant transactions with North Korea. This order provides the Secretary of the Treasury with additional tools to disrupt North Korea’s ability to fund its weapons of mass destruction (WMD) and ballistic missile programs.
OFAC General License for North Korea
The Office of Foreign Assets Control (OFAC) issues general licenses to authorize certain activities that would otherwise be prohibited under the North Korea Sanctions Regulations (NKSR). These general licenses allow specific transactions without the need for a specific license application, facilitating humanitarian, journalistic, and other essential activities.
General Licenses under the North Korea Sanctions Program, and OFAC is actively updating General License 3-A and General License 10. These General Licenses permit specific activities without the need to obtain a Specific License concerning North Korea and North Korean individuals. The General Licenses include:
- General 1-A – North Korean Mission to the United Nations and Employees of the United Nations.
- General License 2 – Provision of Certain Legal Services Authorized.
- General License 3-A – Entry in Certain Accounts for Normal Services Charges Authorized.
- General License 4 – Non-Commercial Personal Remittance Authorized.
- General License 5 – Certain Services in Support of Non-Governmental Organization Activities Authorized.
- General License 6 – Third-Country Diplomatic and Consular Fund Transfers.
- General License 7 – Transactions Related to Telecommunication and Mail Authorized.
- General License 8 – Certain Transactions Related to Patents, Trademarks and Copyrights Authorized.
- General License 9 – Emergency Medical Services Authorized.
- General License 10 – Docking of Certain Vessels and Landing of Certain Aircraft Authorized.
Our OFAC License Attorneys specialize in assisting clients who want to legally work with North Korea. They provide expert guidance through the complex legal framework to ensure compliance with NKSR while facilitating necessary activities. Their expertise is crucial for requesting specific licenses for activities not covered by general licenses.
Contact OFAC Sanctions Lawyer
For businesses and individuals dealing with the complexities of OFAC North Korea sanctions, expert legal guidance is essential. Contact an experienced OFAC sanctions lawyer today to ensure OFAC compliance, mitigate risks, and navigate the intricate regulatory landscape with confidence.
