On 21 September 2017, President Trump issued a new Executive Order (“E.O.“) imposing new sanctions on North Korea, in response to its latest nuclear and ballistic missile tests. The new restrictive measures target individuals and entities that engage in trade with North Korea, as well as the financial institutions that facilitate this trade and these measures include:
- A 180-day ban on vessels and aircraft that have visited North Korea from visiting the United States (“US“). This ban also targets vessels that have engaged in a ship-to-ship transfer with a vessel that has visited North Korea within 180 days;
- The authority to impose sanctions on any foreign financial institution that knowingly conducts or facilitates any significant transaction on behalf of certain designated individuals and entities, or any significant transaction in connection with trade with North Korea, on or after the date of the E.O.;
- The authority for the Secretary of the Treasury, in consultation with the Secretary of State, to impose sanctions on persons involved in:
- Industries: The construction, energy, financial services, fishing, information technology, manufacturing, medical, mining, textiles, or transportation industries in North Korea;
- Ports: Ownership, control, or operation of any port in North Korea, including any seaport, airport, or land port of entry; and
- Imports and Exports: at least one significant importation from or exportation to North Korea of any goods, services, or technology.
- The authority for the Secretary of the Treasury to block any funds originating from, destined for, or passing through accounts linked to North Korea that come within the United States or possession of a U.S. person.
According to the White House press release, foreign financial institutions must choose between doing business with the US, or facilitating trade with North Korea, or its designated supporters. The full press release can be found here.