The Democratic People’s Republic of Korea (Sanctions) (EU Exit) Regulations 2019

Investment and commercial activities

26.—(1) A person (“P”) must not accept or approve investment in a commercial activity which P knows, or has reasonable cause to suspect, is investment made by—

(a)the Government of the DPRK or any member of that Government;

(b)the Worker’s Party of Korea;

(c)a national of the DPRK;

(d)a person, other than an individual, which is incorporated or constituted under the law of the DPRK;

(e)a person acting on behalf of or at the direction of a person falling within any of sub-paragraphs (a) to (d); or

(f)a person, other than an individual, which is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person falling within any of sub-paragraphs (a) to (d).

(2) A person (“P”) must not directly or indirectly provide financial services to, or make funds available to, any person falling within paragraph (1)(a) to (f) if P knows, or has reasonable cause to suspect, that P is so providing the financial services or making the funds so available.

(3) A person (“P”) must not establish, maintain or operate a joint venture or a co-operative entity with—

(a)a person falling within paragraph (1)(a) to (f), or

(b)a person, other than an individual, which is domiciled in the DPRK,

if P knows or has reasonable cause to suspect that P is so doing.

(4) A person (“P”) must not take, acquire or extend any ownership interest in—

(a)a person falling within paragraph (1)(a) to (f), or

(b)a person domiciled in the DPRK,

if P knows or has reasonable cause to suspect that P is so doing.

(5) A person (“P”) must not take, acquire, maintain or extend any ownership interest in activities or assets in the DPRK if P knows, or has reasonable cause, to suspect that P is so doing.

(6) A person (“P”) must not provide financial services directly or indirectly related to any activity that is prohibited by paragraphs (2) to (5) if P knows, or has reasonable cause to suspect, that P is so doing.

(7) Subject to paragraph (8), a person must close any joint ventures or co-operative entities with a person falling within paragraph (1)(a) to (f) or with a person, other than an individual, which is domiciled in the DPRK.

(8) Where a person has directly or indirectly requested approval for a joint venture or co-operative entity from the Committee, that person is not obliged to close that joint venture or co-operative entity—

(a)while no decision has yet been taken by the Committee, or

(b)if the Committee has denied the request for approval, until the end of the period of 120 days beginning with the date on which the Committee denied the request.

(9) Paragraphs (1) to (7) are subject to Part 9 (Exceptions and licences).

(10) A person who contravenes a prohibition in paragraphs (1) to (6) commits an offence.

(11) A person who fails to comply with the requirement in paragraph (7) commits an offence.