Switzerland tightens sanctions against North Korea

Sanctions North Korea

On 22 February 2017, the Swiss Federal Council once again tightened sanctions against the Democratic People’s Republic of Korea (North Korea), thereby implementing UN Security Council Resolution 2321 (2016).

The UN Security Council (UNSC) adopted Resolution 2321 (2016) on 30 November, reinforcing sanctions against North Korea in response to its fifth nuclear test, conducted on 9 September 2016, which violated all previous UNSC resolutions. The resolution includes imposing tougher sanctions on on finance, trade in goods, shipping, air transport and on education.

Financial sanctionsnow specify that North Korea’s diplomatic and consular representations in Switzerland as well as their diplomatic staff may hold only one bank account each. Any supernumerary accounts must be closed. Real estate owned or rented by North Korea may be expressly used only for diplomatic activities. Branches, subsidiaries and representations of Swiss banks may not be opened or operated in North Korea, and nor may Swiss bank accounts, unless they are used for humanitarian purposes, or for diplomatic or UN activities. Existing branches, subsidiaries, representations and bank accounts in North Korea must be closed by 31 March of this year. Any public or private financial support for trade with North Korea is prohibited.

In terms oftrade sanctions, additional goods have been added to the current export ban on luxury goods and on certain dual-use goods for the production of conventional weapons. The purchase of certain raw materials (copper, nickel, silver and zinc) and statues of all kinds from North Korea is prohibited, as is the delivery of new helicopters and ships to North Korea. A new global limit not exceeding approximately USD 400m or 7.5m tonnes per year now has been imposed on the export of coal originating in North Korea. Compliance with these limits is monitored by the UN.

Additional sanctions are being introduced toshipping and air transport, including a ban on the procurement of crew services in North Korea. The provision of insurance or reinsurance is prohibited for ships owned, controlled or operated by North Korea, with the exception of cases where the activities of the ship are for the sole purpose of transporting essential goods or humanitarian purposes.

Existingeducation sanctions will also be extended. North Korean students will no longer be admitted to higher education programmes in materials science, machinery or electronics in Switzerland. Switzerland will suspend scientific and technical cooperation with North Korea, with the exception of medical cooperation.

Source:Press Release

Your team

Contact

In need of legal or tax advice? We look forward to contacting you.