The UN Security Council Sanctions Regime on the DPRK and Challenges - - PowerPoint PPT Presentation

Stephanie Kleine-Ahlbrandt, DPRK Panel of Experts 2017 ASEAN Regional Forum (ARF) Inter-sessional Meeting (ISM) on Non-Proliferation and Disarmament (NPD) Auckland, New Zealand: 8-9 March 2017

The UN Security Council Sanctions Regime on the DPRK and Challenges for Implementation

Overview

1.UN Security Council Sanctions related to the DPRK 2.Expansion of UN sanctions regime through resolutions 2270 & 2321 (2016) 3.Panel of Experts 2017 Final Report findings 4.How do Member States Implement?

• 1. UN Security Council

Sanctions related to the DPRK

Report Report Direct Assist/Report

Security Council

1718 Committee UN Member States, UN Bodies and Interested Parties Panel of Experts

DPRK Sanctions Regime

Goals of sanctions

v to facilitate a peaceful and comprehensive solution v to persuade the DPRK to return to the Treaty on the Non-

Proliferation of Nuclear Weapons (NPT)

v to halt its nuclear weapons and ballistic missile programs by

agreeing to the complete, verifiable, and irreversible denuclearization of the Korean Peninsula

v Legal basis: Under Article 41 of Chapter 7 of the UN Charter, the

Security Council may require all member states to implement measures short of the use of military force to give effect to its decisions

Targeted measures are not intended to have adverse humanitarian consequences

UN Security Council Resolutions concerning the DPRK 30 November 2016 2 March 2016 7 March 2013 S/RES/2321 (2016) S/RES/2270 (2016) S/RES/2094 (2013) S/RES/2087 (2013) S/RES/1874 (2009) S/RES/1718 (2006) UNSCRs concerning the Panel’s Mandate S/RES/2276 (2016) S/RES/2207 (2015) S/RES/2141 (2014) S/RES/2094 (2013) S/RES/2050 (2012) S/RES/1985 (2011) S/RES/1928 (2010) 22 January 2013 12 June 2009 14 October 2006 24 March 2016 4 March 2015 5 March 2014 7 March 2013 12 June 2012 10 June 2011 7 June 2010

DPRK Sanctions Regime

• Investigations:

gather, examine and analyze information from States, relevant UN bodies and other interested parties, in particular on incidents of non-compliance;

• Recommendations: make recommendations on actions

which the Council, Committee or Member States may consider to improve implementation;

• Reporting: report to the 1718 Committee and the

Security Council (twice per year: midterm and final report);

• Outreach to Member States to explain sanctions measures

and encourage correct implementation;

• Assistance to the Committee:

assist the 1718 Committee in carrying out its mandate and functions;

DPRK Panel of Experts

1. 2. 3. 4. Arms Financial Commodity/ Interdiction and embargo sanctions and Sectoral bans Transportation vigilance measures

DPRK Sanctions Regime

• 2. Expansion of the UN

sanctions regime through resolutions 2270 and 2321 (2016)

UN Resolution 2321 (2016) builds on 2270 (2016)

• 1. Imposes additional financial measures impacting the DPRK’s

ability to access the international financial system for prohibited activities

• 2. Strengthens and expands sectoral sanctions on exports from

the DPRK

• 3. Imposes new sanctions on the DPRK’s illicit transportation

activities, including new mandatory inspection of cargo

• 4. Imposes other measures (aimed at non-proliferation)

• 1. Expanded scope of targeted financial

sanctions

• 1. Strengthened asset freeze: now also applies to economic resources
• wned or controlled by the Government of the DPRK, the Worker’s

Party of Korea and any individual / entity working on their behalf or at their direction, with certain exemptions for DPRK diplomatic missions and other case-by-case exemptions

• 2. Scope of other targeted financial sanctions expanded by requiring

States to i. close representative offices of designated entities and prohibit States’ participation in JVs

• r

any

• ther

business arrangements with designated individuals and entities; and ii. expel non-nationals for working on behalf of or at the direction

• f designated individuals or entities.

• 2. New activity-based financial prohibitions and

vigilance measures

• Require all States to expel individuals working on

behalf of DPRK banks or FIs;

• Require closure of foreign bank offices, accounts, and

subsidiaries in the DPRK;

• Require the expulsion of DPRK banking and financial officials

located outside the DPRK;

• Limit the number of bank accounts to one per DPRK

diplomatic mission and consular post, and one per accredited DPRK diplomat and consular

• ffice;
• Prohibit DPRK from using real property it owns or leases in a

State’s territory for any purpose other than diplomatic

• r

consular activities;

• Prohibit all public and private support for trade with the DPRK

(such as export credits, guarantees and insurance).

• 3. Expanded sectoral sanctions
• Prohibitions on trade of gold, titanium ore,

vanadium, rare earth materials, coal, iron, iron

• re, copper, nickel, silver and zinc, aviation fuel,

as well as new helicopters and vessels;

• Setting of a binding cap on DPRK coal exports

and tightening conditions under that cap (the procurements may not involve any individuals

• r

entities associated with the nuclear, ballistic missile, or other prohibited programs and activities).

1. Prohibiting leasing, chartering or provision of crew services to the DPRK; 2. Mandatory inspection of all cargo destined for or originating from the DPRK (including personal luggage and checked baggage) 3. Prohibiting insurance and re-insurance services to DPRK vessels; 4. Prohibiting procurement of vessel or aircraft crewing services from the DPRK; 5. Requiring states to de-flag any vessel owned, controlled, or

• perated

by the DPRK; 6. Introducing procedures for states to designate vessels based

• n

reasonable grounds that they have been related to prohibited programmes or activities.

• 4. Expanded transport restrictions

• 1. Arms Embargo (binding conventional and WMD catch-all)

a. Expanded list of prohibited dual-use items with WMD-related applications to include an additional 18 items; b. Created list of additional dual-use items that have conventional arms-related applications, to be prohibited for transfer to the DPRK.

• 2. Restricting scientific and technical cooperation involving the DPRK in

certain sensitive fields

• 3. Exercising vigilance over the practice of DPRK

nationals sent to work in other States to earn hard currency for the DPRK’s nuclear and ballistic missile programs as well as using bulk cash to evade sanctions

• 5. Restricting entry into, or transit through other States’ territories of

DPRK government and military officials if they are associated with prohibited programs

• 6. Calls upon Member States to reduce the number of staff at DRPK

diplomatic missions and consular posts

• 5. Other measures (proliferation)

• 3. Panel of Experts 2017

Final Report

• In 2016, the DPRK engaged in:
• Nuclear tests (2) and ballistic missile launches (some 20)
• Trade in prohibited goods to a wide array of countries

including in lucrative military technologies

• Trade in banned minerals including by designated entities

despite the new sectoral bans

• More sophisticated sanctions evasion techniques
• DPRK diplomats & embassies playing a key role in prohibited

activities and cases of sanction evasion

• While Member States have successfully blocked OMM vessels,
• ther vessels are engaging in circumvention techniques

(including through identity fraud) with the support of the DPRK maritime administration

Panel of Experts 2017 Report Findings

Maritime transport of prohibited items aboard the Jie Shun

• DPRK banks (including designated banks)

maintain correspondent bank accounts and representative

• ffices abroad
• DPRK banks operate abroad through front

companies that are not registered as financial institutions but function as such

• DPRK banks form partnerships with foreign

companies

• DPRK diplomatic missions provide support

to network’s financial operations

• The DPRK also uses bulk cash and gold to circumvent

the formal financial sector. Panel of Experts Report Findings

• The networks behind this activity consist of a core of

agents who are highly experienced and well trained in mobilizing money, people and goods, including arms and related materiel, across borders.

• DPRK

networks’ ability to conceal financial activity by using foreign nationals and entities allows them to continue to conduct financial transactions through top global financial centers including Hong Kong, New York and Singapore.

• The business conducted by some of these networks

generates significant revenue. Most of the financial activity investigated by the Panel was denominated in US dollars, euros and renminbi. Panel of Experts Report Findings

• 4. How do Member States

implement?

Implementation

Member States are required to supply information regarding any non-compliance with the sanctions measures and to submit national implementation reports in a timely manner. The 1718 Committee and the Panel will engage in

• utreach activities; to foster a better understanding of the

DPRK sanctions regime; and to hold special meetings to address Member States’ capacity challenges The Committee will provide guidance to international

• rganizations and States on how to proceed when

implementing sanctions.

National Implementation Reports (NIRs) Information on non- compliance Reports on inspection, seizure and disposal DPRK Panel of Experts’ independent investigations

Member States implementation

Overview of reporting by region

As of February 2017

• 1718 Committee
• Implementation Assistance Notices
• Fact Sheet compiling certain measures imposed by

Security Council resolutions 1718, 1874, 2087, 2093 and 2270 (24 May 2016)

• Lists of items prohibited for export to and import from the

DPRK

• 1718 Sanctions List
• Procurement of DPRK coal by Member

States

• Committee Guidelines
• More information available here:

https://www.un.org/sc/suborg/en/sanctions/1718

Tools for Member States

Thank you!

Contact: Stephanie Kleine-Ahlbrandt Member, Panel of Experts Established pursuant to UNSCR 1874 United Nations Security Council 2 UN Plaza

• Suite 1849

United Nations, New York 10017 Email: kleine-ahlbrandt@un.org