Press Release - President Donald J. Trump Increases Pressure to Cut Off Funding for North Korea

STRONG FINANCIAL SANCTIONS: President Trump today issued a new Executive Order (E.O.) imposing additional sanctions with respect to North Korea.

• The provocative, destabilizing, and repressive actions and policies of the Government of North Korea constitute a continuing threat to the national security, foreign policy, and, economy of the United States and a disturbance of the international relations of the United States.
• The United States is committed to targeting all means used by North Korea to earn, access, and transfer funds that North Korea uses to further its WMD programs.
• We must maximize pressure on North Korea to demonstrate to its leadership that the best and only path is to return to denuclearization.

TARGETING TRADE AND FINANCIAL INSTITUTIONS: These new authorities target individuals and entities that engage in trade with North Korea as well as the financial institutions that facilitate this trade.

TRADE: The E.O. directly targets North Korea’s shipping and trade networks and issues a 180-day ban on vessels and aircraft that have visited North Korea from visiting the United States. This ban also targets vessels that have engaged in a ship-to-ship transfer with a vessel that has visited North Korea within 180 days. North Korea is dependent on its shipping networks to facilitate international trade.

The E.O. also authorizes the Secretary of the Treasury, in consultation with the Secretary of State, to impose sanctions on persons involved in:

• Industries: The construction, energy, financial services, fishing, information technology, manufacturing, medical, mining, textiles, or transportation industries in North Korea;
• Ports: Ownership, control, or operation of any port in North Korea, including any seaport, airport, or land port of entry;
• Imports/Exports: at least one significant importation from or exportation to North Korea of any goods, services, or technology.

FINANCIAL INSTITUTIONS: The E.O. provides the authority to impose sanctions on any foreign financial institution that knowingly conducts or facilitates any significant transaction on behalf of certain designated individuals and entities, or any significant transaction in connection with trade with North Korea, on or after the date of the E.O.

• Under this new authority, the sanctions measures can be either restrictions on correspondent or payable-through accounts or blocking sanctions.
• The E.O. also provides the Secretary of the Treasury additional authority to block any funds originating from, destined for, or passing through accounts linked to North Korea that come within the United States or possession of a U.S. person.
• Foreign financial institutions must choose between doing business with the United States or facilitating trade with North Korea or its designated supporters.