Financial Services and Markets (Sanctions and Freezing of Assets of Persons — Democratic People’s Republic of Korea) Regulations 2023

The new Financial Services and Markets (Sanctions and Freezing of Assets of Persons — Democratic People’s Republic of Korea) Regulations 2023 were published on Singapore Statutes Online, the official website of the Singapore government for publicizing legal texts. The regulations set out an entirely new sanctions framework with respect to the Democratic People’s Republic of Korea (DPRK) based on various resolutions of the United Nations (UN) Security Council primarily relating to the country’s nuclear weapons program.
The regulations thereby specify
– the grounds for sanctioning individuals, entities, and bodies (designations by the UN Security Council);
– the type of sanctions that will be applied towards such persons, entities, and bodies (asset freezing and other financial restrictions as noted below, trade restrictions); and
– situations where frozen funds may be released (e.g. to meet human basic needs or for the payment of „reasonable“ legal fees).
Additionally, the regulations explicitly prohibit financial institutions to „directly or indirectly (including through any provider of any brokering or other intermediary services) — provide any financial services (including but not limited to the granting of export credits, guarantees, insurance, re‑insurance, or the clearing or settlement of any transactions) or any other related services“ to designated entities, bodies, or persons.
Furthermore, the regulations explicitly require financial institutions to apply enhanced due diligence with respect to transactions and business relationships involving the DPRK and to report:
– any observed or proposed transaction that may be for the benefit of a designated person or entity and
– any frozen assets.
Finally, the regulations repeal the Monetary Authority of Singapore (Sanctions and Freezing of Assets of Persons — Democratic People’s Republic of Korea) Regulations 2016. Any sanction measures that were in effect in the 2016 regulations will continue to apply, including licenses that were granted to individuals, firms, or organizations.