Joint Proposal for a COUNCIL REGULATION amending Regulation (EC) No 329/2007 concerning restrictive measures against the Democratic People’s Republic of Korea
Date: 2013-05-30
Institutions: European Commission, High Representative of the Union
Subjects: North Korea, economic sanctions, international sanctions, trade restriction

EUROPEAN 
COMMISSION 

HIGH REPRESENTATIVE OF THE
EUROPEAN UNION FOR
FOREIGN AFFAIRS AND
SECURITY POLICY

Brussels, 30.5.2013  
JOIN(2013) 18 final 

2013/0180 (NLE) 

Joint Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 329/2007 concerning restrictive measures against the 
Democratic People’s Republic of Korea 

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(1) 

EXPLANATORY MEMORANDUM 

On 7 March 2013, the United Nations Security Council (UNSC) adopted Resolution 
2094  (2013)  in  which  it  condemned  the  nuclear  test  that  the  Democratic  People’s 
Republic of Korea (“North Korea”) had conducted on 12 February 2013. The UNSC 
affirmed the measures it had already taken in UNSC Resolutions 1718 (2006), 1874 
(2009)  and  2087  (2013)  and  decided  that  all  UN  members  shall  apply  additional 
restrictive  measures  against  North  Korea.  The  additional  measures  provided  for  in 
UNSC Resolution 2094 (2013) include:  

(a) 

(b) 

(c) 

(d) 

asset  freeze  measures  against  individuals  or  entities  acting  on  behalf  of  or  at 
the  direction  of  the  individuals  and  entities  which  have  already  been 
designated,  and  to  entities  owned  or  controlled  by  them,  including  through 
illicit means; 

a  prohibition  on  establishment  of  correspondent  banking  relationships  with 
banks and financial institutions in North Korea or the opening of bank accounts 
in North Korea; 

the  requirement  to  inspect  cargos  originating  in  North  Korea  or  destined  for 
North  Korea  or  brokered  or  facilitated  by  North  Korea,  or  by  individuals  or 
entities  acting  on  their  behalf,  where  there  are  reasonable  grounds  to  believe 
that the cargo contains prohibited items; 

a  prohibition  on  aircraft  taking  off  from,  landing  in  or  overflying  territory  if 
there  are  reasonable  grounds  to  believe  that  the  aircraft  contains  prohibited 
items. 

(2) 

(3) 

In order to implement UNSC Resolution 2094 (2013), the Council adopted Decision 
2013/183/CFSP  concerning  restrictive  measures  against  the  Democratic  People’s 
Republic of Korea repealing Decision 2010/800/CFSP1, which provides for action by 
the European Union in order to implement additional restrictive measures. 

The  High  Representative  for  Foreign  Affairs  and  Security  Policy  and  the 
Commission propose to implement the restrictive measures noted above by means of 
an amendment to Council Regulation 329/2007.  

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OJ L 111, 23.4.2013, p.52. 

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2013/0180 (NLE) 

Joint Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 329/2007 concerning restrictive measures against the 
Democratic People’s Republic of Korea 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 215 thereof, 

Having  regard  to  the  joint  proposal  from  the  High  Representative  of  the  Union  for  Foreign 
Affairs and Security Policy and the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

Council  Regulation  (EC)  No  329/2007  of  27  March  2007  concerning  restrictive 
measures  against  the  Democratic  Republic  of  Korea2,  gives  effect  to  measures 
provided for in Common Position 2006/795/CFSP of 20 November 2006 concerning 
restrictive measures against the Democratic People’s Republic of North Korea3, which 
was later repealed and replaced by Council Decision 2010/800/CFSP of 22 December 
2010  concerning  restrictive  measures  against  the  Democratic  People’s  Republic  of 
Korea4 (‘North Korea’). 

On  22  April  2013,  the  Council  adopted  Decision  2013/183/CFSP  concerning 
restrictive measures against the Democratic People’s Republic of Korea and repealing 
Decision  2010/800/CFSP5,  renewing  existing  measures  and  giving  effect  to  United 
Nations Security Council (UNSC) Resolution 2094 (2013).  

The  restrictive  measures  include  a  prohibition  on  the  transfer  of  technical  training, 
advice,  services  or  technical  assistance  in  relation  to  prohibited  items  and  it  is 
necessary  to  expand  the  scope  of  that  prohibition  to  include  other  intermediary 
services. 

The  provision  of  financial  services  to  additional  persons  and  entities  is  prohibited, 
namely those acting on behalf of, or at the direction of, designated persons and entities 
or entities owned or controlled by them, and it is necessary to add an additional listing 
criteria to that effect. 

It  is  necessary  to  prohibit  the  establishment  of  new  correspondent  relationships  with 
banks in North Korea and the maintenance of correspondent relationships with banks 
in North Korea where there are reasonable grounds to believe that this could contribute 
to  North  Korea’s  nuclear-related,  other  weapons  of  mass  destruction-related  or 
ballistic  missile-related  programmes  or  other  prohibited  activities.  Furthermore, 
financial  institutions  of  Member  States  shall  be  prohibited  from  opening  of  bank 
accounts in North Korea. 

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4 
5 

OJ L 88, 29.3.2007, p. 1. 
OJ L 322, 22.11.2006, p. 32. 
OJ L 341, 23.12.2010, p. 32. 
OJ L 111, 23.4.2013, p. 52. 

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(6) 

(7) 

(8) 

It is necessary to inspect cargo originating in North Korea or destined for North Korea 
or brokered or facilitated by North Korea or its nationals, or by individuals or entities 
acting  on  their  behalf,  where  there  are  reasonable  grounds  to  believe  that  the  cargo 
contains prohibited items. Accordingly, there should be a requirement to submit pre-
arrival and pre-departure information. 

It is necessary to prohibit any aircraft from taking off from, landing in or overflying 
the  territory  of  the  Union,  if  there  are  reasonable  grounds to  believe  that  the  aircraft 
contains prohibited items. 

These measures fall within the scope of the Treaty on the Functioning of the European 
Union and, therefore, in particular with a view to ensuring their uniform application by 
economic operators in all Member States, regulatory action at the level of the Union is 
necessary in order to implement them. 

(9) 

Regulation (EC) 329/2007 should therefore be amended accordingly, 

HAS ADOPTED THIS REGULATION: 

Regulation (EC) No 329/2007 is amended as follows: 

(1) 

Article 3(1)(a) is replaced by the following: 

Article 1 

(a) 

“to  provide,  directly  or  indirectly,  technical  assistance  and  brokering  or  other 
intermediary  services  related  to  goods  and  technology  listed  in  the  EU 
Common  List  of  Military  Equipment  or  in  Annexes  I,  Ia  and  Ib  and  to  the 
provision,  manufacture,  maintenance  and  use  of  goods  listed  in  the  EU 
Common List of Military Equipment or in Annexes I, Ia, and Ib to any natural 
or legal person, entity or body in, or for use in, North Korea;” 

(2) 

Article 3a is replaced by the following: 

“Article 3a 

1.  To  prevent  the  transfer  of  goods  and  technology  which  are  covered  by  the  EU 
Common List of Military Equipment or the supply, sale, transfer, export or import of 
which is  prohibited by this  Regulation, and in addition to the  obligation to  provide 
the competent customs authorities with the pre-arrival and pre-departure information 
as  determined  in  the  relevant  provisions  concerning  entry  and  exit  summary 
declarations as well as customs declarations in Regulation (EEC) No 2913/926 and in 
Regulation (EEC) No 2454/937, the person who provides the information referred to 
in paragraph 2 of this Article, shall declare whether the goods are covered by the EU 
Common List of Military Equipment or by this Regulation and, where their export is 
subject to authorisation, specify the particulars of the export licence granted.  

2.  The  required  additional  elements  referred  to  in  this  Article  shall  be  submitted 
either in written form or using a customs declaration as appropriate.  

3.  The  provision  of  bunkering  or  ship  supply  services,  or  any  other  servicing  of 
vessels, to North Korean vessels is prohibited where the providers of the service have 
information,  including  from  the  competent  customs  authorities  on  the  basis  of  the 
pre-arrival  and  pre-  departure  information  referred  to  in  paragraph  1,  that  provides 

6 
7 

OJ L 302, 19.10.1992, p. 1. 
OJ L 253, 11.10.1993, p. 1. 

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reasonable  grounds  to  believe  that  the  vessels  carry  items  whose  supply,  sale, 
transfer  or  export  is  prohibited  under  this  Regulation,  unless  the  provision  of  such 
services is necessary for humanitarian purposes.” 

(3) 

Article 5a is amended as follows: 

(a) 

In Article 5a(1), points (a) and (b) are replaced by the following: 

“(a) to open a new bank account with a credit or financial institution domiciled 
in  North  Korea  or  any  credit  or  financial  institution  referred  to  in  Article 
11a(2); 

(b)  to  establish  a  new  correspondent  banking  relationship  with  a  credit  or 
financial  institution  domiciled  in  North  Korea  or  with  any  credit  or  financial 
institution referred to in Article 11a(2);” 

(b) 

In Article 5a(1) the following points (c), (d) and (e) are added: 

“(c) to open a new representative office in North Korea, or to establish a new 
branch or subsidiary, in North Korea;  

(d)  to  establish  a  new  joint  venture  with  a  credit  or  financial  institution 
domiciled in North Korea or with any credit or financial institution referred to 
in Article 11a(2); 

(e) to maintain a correspondent banking relationship with a credit or financial 
institution  domiciled  in  North  Korea  and  any  credit  or  financial  institution 
referred  to  in  Article  11a(2)  if  there  is  information  that  provides  reasonable 
grounds to believe that this could contribute to North Korea’s nuclear-related, 
other  weapons  of  mass  destruction-related  or  ballistic  missile-related 
programmes,  or  other  prohibited  activities  by  this  Regulation  or  Decision 
2013/88/CFSP.”  

(4) 

In Article 6 paragraphs 1 to 4 are replaced by the following: 

“1. All funds and economic resources belonging to, owned, held or controlled by the 
persons,  entities  and  bodies  listed  in  Annex  IV  shall  be  frozen.  Annex  IV  shall 
include  the  persons,  entities  and  bodies  designated  by  the  Sanctions  Committee  or 
the UN Security Council in accordance with paragraph 8(d) of UN Security Council 
Resolution  1718  (2006),  and  paragraph  8  of  UN  Security  Council  Resolution  2094 
(2013). 

2. All funds and economic resources belonging to, owned, held or controlled by the 
persons, entities and bodies listed in Annex V shall be frozen. Annex V shall include 
persons,  entities  and  bodies  not  listed  in  Annex  IV,  who,  in  accordance  with 
paragraph  Article  15  (1)  point  (b)  of  Council  Decision  2013/183/CFSP,  have  been 
identified by the Council: 

(a)  as  responsible  for,  including  through  support  or  promoting,  North  Korea’s 
nuclear-related, other weapons of mass destruction-related or ballistic missile-related 
programmes, or persons, entities or bodies acting on their behalf or at their direction, 
or persons, entities or bodies owned or controlled by them, including through illicit 
means; 

(b) as providing financial services or the transfer to, through or from the territory of 
the Union, or involving nationals of Member States or entities organised under their 
laws, or persons or financial institutions in the territory of the Union, of any financial 
or  other  assets  or  resources  that  could  contribute  to  North  Korea’s  nuclear-related, 

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other weapons of mass destruction-related or ballistic missile-related programmes, or 
persons,  entities  or  bodies  acting  on  their  behalf  or  at  their  direction,  or  persons, 
entities or bodies owned or controlled by them; or 

(c) as involved in, including through the provision of financial services, the supply to 
or from North Korea of arms and related material of all types, or of items, materials, 
equipment, goods and technology which could contribute to North Korea’s nuclear-
related,  other  weapons  of  mass  destruction-related  or  ballistic  missile-related 
programmes to North Korea. 

Annex V shall be reviewed at regular intervals and at least every 12 months.  

2a.  All  funds  and  economic  resources  belonging  to,  owned,  held  or  controlled  by 
persons, entities or bodies in Annex Va shall be frozen. Annex Va shall include the 
persons, entities or bodies not covered by Annex IV or V who are working on behalf 
of or at the direction of a person, entity or body listed in Annex IV or V or persons 
assisting in the evasion of sanctions or violating the provisions of this Regulation, of 
Decision 2013/183/CSFP as listed in Annex Va. 

Annex Va shall be reviewed at regular intervals and at least every 12 months. 

3. Annexes IV, V and Va shall include where available information on listed natural 
persons for the purpose of identifying sufficiently the persons concerned. 

Such information may include: 

(a) 

surname and given names, including alias names and titles, if any; 

(b)  date and place of birth; 

(c)  nationality; 

(d)  passport and identity card numbers; 

(e) 

(f) 

(g) 

(h) 

(i) 

fiscal and social security numbers; 

gender; 

address or other information on whereabouts; 

function or profession; 

date of designation. 

Annexes IV, V and Va shall also include the grounds for listing, such as occupation. 

Annexes IV, V and Va may also include information on identification purposes as set 
out  in  this  paragraph  on  family  members  of  the  persons  listed,  provided  that  this 
information  is  necessary  in  a  specific  case  for  the  sole  purpose  of  verifying  the 
identity of the listed natural person concerned. 

4. No funds or economic resources shall be made available, directly or indirectly, to 
for the benefit of the natural or legal persons, entities or bodies listed in Annexes IV, 
V and Va.”  

(5) 

Article 7 is replaced by the following: 

“Article 7 

1.  By  way  of  derogation  from  Article  6,  the  competent  authorities  of  the  Member 
States,  as  indicated  on  the  websites  listed  in  Annex  II,  may  authorise  under  such 
conditions as they deem appropriate, the release of certain frozen funds or economic 

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resources,  or  the  making  available  of  certain  funds  or  economic  resources,  if  the 
following conditions are met: 

(a) 

the competent authority concerned has determined that the funds or economic 
resources are: 

necessary to satisfy the basic needs of persons listed in Annex IV, V or 
(i) 
Va  and  their  dependent  family  members,  including  payments  for  foodstuffs, 
rent or mortgage, medicines and medical treatment, taxes, insurance premiums 
and public utility charges; 

(ii) 
intended  exclusively  for  payment  of  reasonable  professional  fees  and 
reimbursement  of  incurred  expenses  associated  with  the  provision  of  legal 
services; or 

intended exclusively for payment of fees or services charges for routine 

(iii) 
holding or maintenance of frozen funds or economic resources; and 

(b)  where the authorisation concerns a person, entity and body listed in Annex IV, 
the  Member  State  concerned  has  notified  the  Sanctions  Committee  of  that 
determination  and  its  intention  to  grant  an  authorisation,  and  the  Sanctions 
Committee has not objected to that course of action within five working days 
of notification. 

2.  By  way  of  derogation  from  Article  6,  the  competent  authorities  of  the  Member 
States, as indicated on the websites listed in Annex II, may authorise the release of 
certain frozen funds or economic resources or the making available of certain frozen 
funds  or  economic  resources,  after  having  determined  that  the  funds  or  economic 
resources are necessary for extraordinary expense, provided that: 

(a)  where the authorisation concerns a person, entity or body listed in Annex IV, 
the  Sanctions  Committee  has  been  notified  of  this  determination  by  the 
member State concerned and that the determination has been approved by that 
Committee, and 

(b)  where the authorisation concerns a person, entity or body listed in Annex V or 
Va,  the  Member  State  concerned  has  notified  other  Member  States  and  the 
Commission of the grounds on which it considers that a specific authorisation 
should be granted, at least two weeks prior to the authorisation. 

3.  The  Member  State  concerned  shall  inform  other  Member  States  and  the 
Commission of any authorisation granted under paragraphs 1 and 2.”  

(6) 

Article 8(c) shall be replaced by the following: 

“(c) the lien or judgement is not for the benefit of a person, entity or body listed in 
Annexes IV, V or Va.” 

(7) 

Article 11a(1) is replaced by the following: 

“1. Credit and financial institutions which fall within the scope of Article 16 shall, in 
their activities with credit and financial institutions referred to in paragraph 2, and in 
order to prevent such activities contributing to North Korea’s nuclear-related, other 
weapons  of  mass  destruction-related  or  ballistic  missile-related  programmes  or  to 
prevent other activities prohibited by this Regulation, or Decision 2013/88/CFSP: 

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(a) exercise continuous vigilance over account activity, particularly by means of their 
programmes on customer due diligence and obligations related to the prevention of 
money-laundering and the financing of terrorism; 

(b)  require  that  in  payment  instructions  all  information  fields  which  relate  to  the 
originator  and  beneficiary  of  the  transaction  in  question  be  completed  and,  if  that 
information is not supplied, refuse the transaction; 

(c)  maintain  all  records  of  transactions  for  a  period  of  five  years  and  make  them 
available to national authorities on request; 

(d)  if  they  suspect  or  have  reasonable  grounds  to  suspect  that  funds  are  related  to 
proliferation financing, promptly report their suspicions to the financial intelligence 
unit  (FIU)  or  another  competent  authority  designated  by  the  Member  State 
concerned,  as  indicated  on  the  websites  listed  in  Annex  II,  without  prejudice  to 
Article  3(1)  or  Article  6.  The  FIU  or  another  competent  authority  shall  serve  as  a 
national  centre  for  receiving  and  analysing  suspicious  transaction  reports  regarding 
potential  proliferation  financing.  The  FIU  or  other  such  competent  authority  shall 
have access, directly or indirectly, on a timely basis to the financial, administrative 
and law enforcement information that it requires in order to properly undertake this 
function, including the analysis of suspicious transaction reports.” 

(8) 

The following Article shall be inserted:  

“Article 11b 

1. Where there are reasonable grounds to believe that an aircraft may contain items 
whose supply, sale, transfer or export is prohibited under Articles 2, 4 or 4a, it shall 
be prohibited for that aircraft to: 

(a) 

(b) 

fly over the territory of the Union; or 

to take off from or land in the territory of the Union.  

2. Paragraph 1 shall not restrict aircraft from making an emergency landing. 

3.  Paragraph  1  shall  not  restrict  aircraft  registered  in  an  EU  Member  State  from 
landing for inspection of prohibited items. 

4. It shall be prohibited to participate, knowingly and intentionally, in activities the 
object or effect of which is to circumvent paragraph 1.” 

(9) 

The Annex to this Regulation is inserted as Annex Va to Regulation 329/2007.  

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

Article 2 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels,  

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For the Council 
The President  

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ANNEX 

"ANNEX Va” 

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