Citation, commencement, extent and revocation_I1

1.—(1) This Order may be cited as the Democratic People’s Republic of Korea (Sanctions) (Overseas Territories) Order 2012.

(2) It comes into force on 9th January 2013.

(3) It extends to the territories listed in Schedule 1.

(4) The North Korea (United Nations Measures) (Overseas Territories) Order 2006(4) is revoked.

Application of the Order_I2

2.—(1) This Order applies to—

(a)any person in the Territory,

(b)any person elsewhere who is—

(i)a British citizen, a British overseas territories citizen, a British Overseas citizen, a British subject, a British National (Overseas) or a British protected person and is ordinarily resident in the Territory, or

(ii)a body incorporated or constituted under the law of any part of the Territory, and

(c)any person onboard a ship or aircraft that is registered in the Territory.

[^F1 (2) Article 17 applies to the Sovereign Base Areas of Akrotiri and Dhekelia in the Island of Cyprus, the Falkland Islands, South Georgia and the South Sandwich Islands, and St Helena, Ascension and Tristan da Cunha as set out in Schedule 3.^F1]

[^F2 (3) ^F2] In the application of this Order to any territory listed in Schedule 1, the expression “the Territory” in this Order means that territory.

Interpretation_I3

3.—(1) In this Order, unless otherwise provided—

“aircraft” means a fixed wing, swivel wing, rotary wing, tilt rotor or tilt wing airborne vehicle or helicopter;

“assistance” means any form of assistance, including advice, training, technical assistance, [^F3 financing or financial assistance ^F3] , investment services, brokering services or other services, and the transfer of financial resources and services;

[^F4 “aviation fuel” means items listed in Annex Ie to the Council Regulation; ^F4]

[^F5 “branch”, in relation to a financial or credit institution, means a place of business which forms a legally dependent part of a financial or credit institution and which carries out directly all or some of the transactions inherent in the business of financial or credit institutions; ^F5]

“brokering services” means—

[^F4 “coal, iron and iron ore” means items listed in Annex Id to the Council Regulation; ^F4]

“commander”, in relation to an aircraft, means the member of the flight crew designated as commander of the aircraft by the operator of the aircraft, or, if there is no operator, the person who is for the time being the pilot in command of the aircraft;

[^F6 “the Committee” means the Committee of the United Nations Security Council established under paragraph 12 of the United Nations Security Council resolution 1718 adopted on 14th October 2006; ^F6]

[^F7 “condensates and natural gas liquids” means items listed in Annex XIc of the Council Regulation; ^F7]

[^F6 “copper, nickel, silver and zinc” means items listed in Annex Ih to the Council Regulation; ^F6]

[^F8 “the Council Regulation” means Council Regulation ( EU ) No 2017/1509 adopted by the Council of the European Union on 30th August 2017 concerning restrictive measures against the Democratic People’s Republic of Korea and repealing Regulation (EC) No 329/2007 ; ^F8]

[^F7 “crude oil” means items listed in Annex XIe of the Council Regulation; ^F7]

[^F9 “designated person” means any person listed in [^F10 Annex XIII , XV , XVI , or XVII ^F10] to the Council Regulation and any person subject to a direction made by the Treasury under regulation 7A of the Democratic People’s Republic of Korea (European Union Financial Sanctions) Regulations 2013 ( 5 ) ; ^F9]

[^F6 “designated vessel” means a vessel designated by the Committee pursuant to paragraph 12 of resolution 2321 (2016) [^F11 or listed in Annex XIV to the Council Regulation ^F11] ; ^F6]

“document” includes information recorded in any form, and in relation to information recorded otherwise than in legible form, references to its production include references to producing a copy of the information in legible form;

[^F12 “economic resources” means assets of every kind, whether tangible or intangible, movable or immovable, actual or potential which are not funds but can be used to obtain funds, goods or services, including vessels, such as maritime vessels; ^F12]

“export” includes shipment as stores;

“exportation” in relation to any ship or aircraft, includes taking the ship or aircraft out of the Territory, whether or not it is conveying goods or passengers or moving under its own power, and cognate expressions are to be construed accordingly;

[^F13 “financial institutions” includes companies performing financial services commensurate with those provided by banks; ^F13]

[^F14 “financing or financial assistance” includes grants, loans, export credit insurance, insurance and reinsurance; ^F14]

“frozen account” means an account with a relevant institution which is held or controlled (directly or indirectly) by a designated person;

“funds” means financial assets and benefits of every kind, including (but not limited to)—

[^F4 “gold and ores” means items listed in Annex Ic to the Council Regulation; ^F4]

“goods” includes items, materials and equipment;

“Governor” means the Governor or other officer administering the Government of the Territory;

[^F6 “helicopters and vessels” means items listed in Annex IIIb to the Council Regulation; ^F6]

^F15 “insurance” means an undertaking or commitment where a ... person is obliged, in return for a payment, to provide another person, in the event of materialisation of a risk, with an indemnity or a benefit as determined by the undertaking or commitment;

[^F16 “investment services” means—

[^F13 lead and lead ore” means items listed in Annex XIb of the Council Regulation;^F13]

“luxury goods” means luxury goods listed in Annex III to the Council Regulation;

“master”, in relation to a ship, includes any persons for the time being in charge of the ship;

“North Korea” means the Democratic People’s Republic of Korea;

“officer”, in relation to a body corporate, means a director, manager, secretary or other similar officer of the body corporate or any person who has purported to act in any such capacity;

“operator”, in relation to an aircraft or vehicle, means the person for the time being having the management of the aircraft or vehicle;

“owner”, in relation to a ship, where the owner is not the operator, means the operator and any person to whom it is chartered;

^F17...

[^F16 “payee” means a person that is the intended recipient of transferred funds; ^F16]

[^F16 “payer” means a person—

[^F16 “payment service provider” means a person providing transfer of funds services; ^F16]

[^F16 “petroleum products” means items listed in Annex If to the Council Regulation; ^F16]

[^F6 “real property” means land, buildings and parts therof, which are located outside the territory of North Korea; ^F6]

[^F7 “refined petroleum products” means items listed in Annex XId of the Council Regulation; ^F7]

[^F5 “reinsurance” means the activity consisting in accepting risks ceded by an insurance undertaking or by another reinsurance undertaking or, in the case of the association of underwriters known as Lloyd’s, the activity consisting in accepting risks, ceded by any member of Lloyd’s, by an insurance or reinsurance undertaking other than the association of underwriters known as Lloyd’s; ^F5]

“relevant institution” means—

[^F4 “relevant person”—

[^F6 “resolution 2321 (2016)” means United Nations Security Council resolution 2321 adopted on 30th November 2016; ^F6]

“restricted goods” means—

[^F13 “seafood” includes all seafood including fish, crustaceans, molluscs, and other aquatic invertebrates in all forms, as listed in Annex XIa of the Council Regulation; ^F13]

[^F20 “services incidental to” means services rendered on a fee or contract basis by units mainly engaged in the production of transportable goods, and services typically related to the production of such goods; ^F20]

“ship” includes every description of vessel used in navigation;

“ship supply services” means the provision to a ship of bunker oil or any other supply, provision or service, other than basic provisions for the crew, to facilitate a voyage by that ship;

“shipment” includes loading into an aircraft;

[^F6 “statues” means items listed in Annex IIIa to the Council Regulation; ^F6]

“stores” means goods for use in a ship or aircraft and includes fuel and spare parts and other articles of equipment, whether or not for immediate fitting, but excludes any goods for use in a ship or aircraft as merchandise for sale by retail to persons carried in them;

“technical assistance” means any technical support related to repairs, development, manufacture, assembly, testing, maintenance, or any other technical service, and may take forms such as instruction, advice, training, transmission of working knowledge or skills or consulting services, including verbal forms of assistance;

“the Territory” has the meaning given in article 2(5);

“transfer” in relation to funds means—

[^F7 “textiles” means items listed in Annex XIf of the Council Regulation; ^F7]

“vehicle” means land transport vehicle.

(2) For the purpose of the definition of “relevant institution” in paragraph (1)—

(a)the activity of accepting deposits has the meaning given by section 22 of the Financial Services and Markets Act 2000(7), taken with Schedule 2 to that Act and any order under section 22 of that Act, and

(b)a person is not regarded as accepting deposits by way of business if—

(i)the person does not hold himself or herself out as accepting deposits on a day to day basis, and

(ii)any deposits which the person accepts are accepted only on particular occasions, whether or not involving the issue of any securities.

(3) In determining for the purposes of paragraph (2)(b) whether deposits are accepted only on particular occasions, regard is to be had to the frequency of those occasions and to any characteristics distinguishing them from each other.

(4) An expression used both in this Order and in the Council Regulation has the meaning given in the Council Regulation.

(5) A reference in this Order to any enactment (including legislation of the European Union) or statutory instrument is to be construed as a reference to that enactment or instrument as amended from time to time.

PART 1 Freezing funds etc.

Dealing with funds and economic resources_I4

4. —(1) It is an offence for a person (“P”), including the designated person, to deal with funds or economic resources belonging to, or owned, held or controlled by, a designated person if P knows, or has reasonable cause to suspect, that P is dealing with such funds or economic resources.

(2) In paragraph (1), “deal with” means—

(a)in relation to funds—

(i)use, alter, move, allow access to or transfer,

(ii)deal with the funds in any other way that would result in a change in volume, amount, location, ownership, possession, character or destination, or

(iii)make any other change that would enable use, including portfolio management, and

(b)in relation to economic resources, use to obtain funds, goods or services in any way, including by selling, hiring or mortgaging the resources.

(3) It is an offence for a person (“P”) to make funds or economic resources available (directly or indirectly) to a designated person if P knows, or has reasonable cause to suspect, that—

(a)P is making the funds or economic resources so available, and

(b)in the case of economic resources, the designated person would be likely to exchange them, or use them in exchange, for funds, goods or services.

(4) It is an offence for a person (“P”) to make funds or economic resources available (directly or indirectly) to any person for the benefit of a designated person if P knows, or has reasonable cause to suspect, that P is making the funds or economic resources so available.

(5) For the purposes of paragraph (4)—

(a)funds or economic resources are made available for the benefit of a designated person only if that person obtains, or is able to obtain, a significant financial benefit from the funds or economic resources, and

(b) “financial benefit” includes the discharge of a financial obligation for which the designated person is wholly or partly responsible.

(6) No liability arises for any person concerned in the freezing of funds or economic resources in accordance with this article unless it is proved that the funds or economic resources were frozen or withheld as a result of negligence.

(7) This article is subject to articles 5 [^F21, 11 and 12^F21] .

Credits to a frozen account_I5

5.—(1) Nothing in article 4 prevents a person from crediting a frozen account with—

(a)interest or other earnings due on the account, or

(b)payments due under contracts, agreements or obligations that were concluded or arose before the account became a frozen account.

(2) Nothing in article 4 prevents a relevant institution from crediting a frozen account where it receives funds transferred to the account.

Information relating to funds etc._I6

6.—(1) The Governor must take such steps as the Governor considers appropriate to cooperate with any international investigation relating to the funds, economic resources or financial transactions of—

(a)a designated person,

(b)a person owned or controlled by a designated person, or

(c)a person acting on behalf of, or at the direction of, a designated person.

(2) A relevant institution must inform the Governor as soon as practicable if it knows or suspects that a customer—

(a)is a designated person, or

(b)has committed an offence under article 4 or 11(10).

(3) When informing the Governor under paragraph (2), the relevant institution must state—

(a)the information or other matter on which the knowledge or suspicion is based,

(b)any information it holds about the customer by which the customer can be identified, and

(c)if the customer is a designated person, the nature and amount or quantity of any funds or economic resources held by the relevant institution for the customer since the customer first became a designated person.

(4) A relevant institution must inform the Governor as soon as practicable if it credits a frozen account in accordance with article 5(1)(b) or (2).

(5) It is an offence for a relevant institution to fail to comply with a requirement of paragraph (2), (3) or (4).

(6) Anything done by a relevant institution in accordance with this article is not to be treated as a breach of any restriction imposed by statute or otherwise.

(7) For the purposes of this article, “customer”, in relation to a relevant institution, includes—

(a)a person who is or has been a customer of the institution at any time since the coming into force of this Order, or

(b)a person with whom the institution has had dealings in the course of its business since the coming into force of this Order.

PART 2 Restricted goods etc.

[^F22Offences related to the movement of [^F23certain items^F23]

7.—(1) It is an offence for a person to knowingly sell, supply, transfer or export (directly or indirectly) restricted goods—

(a)to any person in North Korea; or

(b)for use in North Korea.

(2) It is an offence for a person to knowingly sell, supply or transfer or export (directly or indirectly) luxury goods [^F24 , aviation fuel, ^F25... helicopters and vessels^F24] [^F26 , condensates and natural gas liquids, refined petroleum products or crude oil^F26] —

(a)to any person in North Korea; or

(b)for use in North Korea.

(3)[^F27 It is an offence for a person to knowingly obtain from North Korea—

(a)coal, iron and iron ore;

(b)gold and ores;

(c)luxury goods; ^F28...

(d)petroleum products [^F29 ;^F29]

[^F30 (e)copper, nickel, silver and zinc; ^F31...

(f)statues [^F32 ;^F32,F30]]

[^F33 (g)seafood; ^F34...

(h)lead and lead ore [^F35 ; or^F35,F33]]

[^F36 (i)textiles.^F36]

regardless of whether the goods originated in North Korea.

(3A) Paragraphs (2) and (3) in relation to luxury goods do not apply to—

(a)personal effects of a person travelling to or from North Korea;

(b)goods of a non-commercial nature for personal use contained in the luggage of a person travelling to or from North Korea;

(c)goods necessary for the official purposes of diplomatic or consular missions in North Korea or the personal effects of their staff; or

(d)goods necessary for the official purposes of international organisations enjoying immunities in North Korea in accordance with international law or the personal effects of their staff.

(4) It is an offence for a relevant person to knowingly use a ship, aircraft or vehicle falling within paragraph (7) for the carriage of restricted goods, luxury goods [^F37 , aviation fuel, ^F38... helicopters and vessels^F37] [^F39 , condensates and natural gas liquids, refined petroleum products, or crude oil,^F39] if the carriage is, or forms part of, carriage from any place outside North Korea to any destination in North Korea.

(5) It is an offence for a relevant person to knowingly use a ship, aircraft or vehicle falling within paragraph (7) for the carriage of restricted goods, coal, iron and iron ore [^F40 , gold and ores, copper, nickel, silver and zinc, ^F41... statues,^F40] [^F42 seafood, lead and lead ore or textiles,^F42] if the carriage is, or forms part of, carriage from any place in North Korea to any destination outside North Korea.^F27]

(6) Paragraphs (2) and (4) do not apply in relation to the sale or supply of aviation fuel to civilian passenger aircraft outside North Korea exclusively for consumption during its flight to North Korea and its return to the airport of origin.

(7) The following fall within this paragraph—

(a)a ship, aircraft or vehicle within the Territory;

(b)a ship or aircraft registered in the Territory; or

(c)any other ship or aircraft that is for the time being chartered to a person mentioned in article 2(1)(a) or (b).

(8) Paragraphs (4) and (5) are without prejudice to any other provision of law prohibiting or restricting the use of ships, aircraft or vehicles.

(9) Schedule 2 (which contains provision about customs powers and investigations in relation to offences under this article and article 7A) has effect.

(10) This article is subject to articles 11 and 12.

Providing, obtaining or carrying goods destined for North Korea’s armed forces

7A. —(1) It is an offence for a person (“P”) to knowingly sell, supply, transfer or export (directly or indirectly) to North Korea goods, except food or medicine, which P knows or has reasonable cause to suspect—

(a)are destined directly or indirectly for North Korea’s armed forces; or

(b)could support or enhance the operational capabilities of the armed forces of a State other than North Korea.

(2) It is an offence for a person (“P”) to knowingly obtain goods from North Korea, except food or medicine, which P knows or has reasonable cause to suspect—

(a)are destined directly or indirectly for North Korea’s armed forces; or

(b)could support or enhance the operational capabilities of the armed forces of a State other than North Korea.

(3) It is an offence for a relevant person (“P”) to knowingly use a ship, aircraft or vehicle falling within article 7(7) for the carriage of goods, except food or medicine, if—

(a)the carriage is, or forms part of, carriage—

(i)from any place outside North Korea to any destination in North Korea, or

(ii)from any place in North Korea to any destination outside North Korea; and

(b)P knows or has reasonable cause to suspect that—

(i)the goods are destined directly or indirectly for North Korea’s armed forces, or

(ii)the goods could support or enhance the operational capabilities of the armed forces of a State other than North Korea.

(4) Paragraph (3) is without prejudice to any other provision of law prohibiting or restricting the use of ships, aircraft or vehicles.

(5) This article is subject to articles 11 and 12.^F22]

Providing assistance related to restricted goods_I7

8.—(1) It is an offence for a person to knowingly provide (directly or indirectly) assistance relating to the sale, supply, transfer or export of restricted goods —

(a)to any person in North Korea, or

(b)for use in North Korea.

(2) It is an offence for a person to knowingly provide (directly or indirectly) assistance relating to the maintenance, manufacture or use of restricted goods—

(a)by any person in North Korea, or

(b)for use in North Korea.

(3) This article is subject to [^F43articles 11 and 12^F43] .

Obtaining assistance related to restricted goods_I8

9.—(1) It is an offence for a person to knowingly obtain (directly or indirectly) assistance relating to the sale, supply, transfer or export of restricted goods —

(a)from any person in North Korea, or

(b)for use in North Korea.

(2) It is an offence for a person to knowingly obtain (directly or indirectly) assistance relating to the maintenance, manufacture or use of restricted goods—

(a)from any person in North Korea, or

(b)for use in North Korea

(3) This article is subject to [^F44articles 11 and 12^F44] .

[^F45Ship supply services and ship-to-ship transfers^F45] _I9

10. —(1) It is an offence for a person (“P”) to provide ship supply services to any ship registered in North Korea where P knows, or has reasonable grounds to suspect, that the ship is carrying restricted goods or luxury goods the carriage of which is prohibited by [^F46 article 7(4) or (5) ^F46] .

(2) No offence is committed under paragraph (1) if the provision of ship supply services is necessary for humanitarian purposes.

[^F47 (3) It is an offence for any person (“P”) to facilitate or engage in ship-to-ship transfers of any goods or items that are being sold, supplied, transferred, or exported to or from North Korea, to or from any ship which P knows or has reasonable grounds to suspect is registered in North Korea.

(4) This article is subject to articles 11 and 12.^F47]

[^F48PART 2A Other Restrictions

Sale or purchase of North Korean bonds

10A. —(1) A person (“P”) commits an offence if P sells or purchases (directly or indirectly) North Korean public or public-guaranteed bonds issued after the date on which this Order comes into force to or from a person ^F49 ... falling within paragraph (4) if P knows or has reasonable cause to suspect that the sale or purchase is to or from such a person ^F49 ....

(2) A person (“P”) commits an offence if P provides brokering services with respect to North Korean public or public-guaranteed bonds issued after the date on which this Order comes into force to a person ^F49 ... falling within paragraph (4) if P knows or has reasonable cause to suspect that the services are being provided to such a person ^F49 ....

(3) A person (“P”) commits an offence if P assists a person ^F49 ... falling within paragraph (4) to issue North Korean public or public-guaranteed bonds, by providing—

(a)brokering services,

(b)advertising, or

(c)any other service with respect to such bonds,

if P knows or has reasonable cause to suspect that P is assisting such a person^F49....

(4) The following persons^F50... fall within this paragraph—

(a)North Korea or its Government, and its public bodies, corporations and agencies;

(b)a credit or financial institution domiciled in North Korea, including the Central Bank of North Korea;

(c)a branch or subsidiary, wherever located, of a credit or financial institution domiciled in North Korea;

(d)a credit or financial institution that is not domiciled in North Korea, but is controlled by a person ^F51... domiciled in North Korea;

(e)a person^F52... acting on behalf of or at the direction of a ^F52... person^F52... falling within sub-paragraph (a), (b), (c) or (d);

(f)a legal person, entity or body owned or controlled by a person, entity or body falling within sub-paragraph (a), (b), (c), (d) or (e).

Agreements

10B. A person (“P”) commits an offence if P concludes an agreement for, or on behalf of, a person ^F53 ... falling within article 10A (4), which relates to the opening of a representative office or the establishment of a branch or subsidiary in the Territory or P knows or has reasonable cause to suspect that the agreement is for, or on behalf of, such a person.

[^F54North Korean credit and financial institutions: branches, subsidiaries, and representative offices

10C. —(1) A credit or financial institution (“P”) commits an offence if P—

(a)opens a new bank account with;

(b)establishes a new correspondent banking relationship with;

(c)establishes a new joint venture with; or

(d)takes an ownership interest in,

a person who P knows or has reasonable cause to suspect falls within article 10A(4).

(2) A credit or financial institution (“P”) commits an offence if P—

(a)opens a new representative office in North Korea; or

(b)establishes a new branch or subsidiary in North Korea.

Acquisition or extension of ownership interest

10D. A credit or financial institution (“P”) commits an offence if P allows a person falling within article 10A(4) to acquire or extend a participation, or acquire any other ownership interest, in P.

Severance of existing financial relationships

10E. —(1) A credit or financial institution (“P”) commits an offence if, by 24th June 2016, P fails to—

(a)terminate any joint venture with;

(b)relinquish any ownership interest in; or

(c)terminate any correspondent banking relationship with,

a person who P knows or has reasonable cause to suspect falls within article 10(A)(4).

(2) The Governor may direct that a credit or financial institution must—

(a)close any bank account with a person falling within article 10(A)(4); or

(b)close any branch, subsidiary, or representative office in North Korea.

^F55(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F55(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F55(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) Any direction made under paragraph (2) must be—

(a)published in any form the Governor considers appropriate, including by means of a website;

(b)sent by the Governor to one or more credit or financial institutions affected by the direction; or

(c)sent by the Governor to one or more other persons affected by the direction.

(7) A credit or financial institution (“P”) commits an offence if P knowingly fails to comply with any direction of the Governor made under paragraph (2).

(8) Anything done by a credit or financial institution in accordance with this article is not to be treated as a breach of any restriction imposed by statute or otherwise.

Business directly or indirectly with designated persons

10F. A credit or financial institution (“P”) commits an offence if P knowingly participates in any business arrangements, including joint ventures, with—

(a)a designated person; or

(b)any other person acting on behalf or at the direction of such a person.

Financial support for trade

10G. —(1) A credit or financial institution (“P”) commits an offence if P provides financing or financial assistance for trade which P knows or has reasonable cause to suspect may contribute to—

(a)the nuclear-related, other weapons of mass destruction-related, or ballistic missile-related programmes of North Korea; or

(b)an activity prohibited under this Order.

(2) Paragraph (1) does not apply if—

(a)the contract or agreement to provide financing or financial assistance was concluded prior to 10th August 2016; or

(b)the trade is in food, agricultural or medical equipment, or is for humanitarian purposes.^F56]

Offences related to the movement of North Korean banknotes or coins

10H. A person (“P”) commits an offence if P knowingly sells, supplies, transfers or exports (directly or indirectly) new North Korea denominated banknotes or coinage printed or minted in the Territory to the Central Bank of North Korea.

Offences related to the movement of gold, precious metals or diamonds listed in Annex VII to the Council Regulation

10I. —(1) A person (“P”) commits an offence if P knowingly—

(a)sells, supplies, transfers or exports (directly or indirectly) gold, precious metals or diamonds listed in Annex VII to the Council Regulation to a person falling within paragraph (2);

(b)purchases, imports or transports (directly or indirectly) gold, precious metals or diamonds listed in Annex VII to the Council Regulation, regardless of whether the goods originated in North Korea, from a person falling within paragraph (2); or

(c)provides (directly or indirectly) technical assistance or brokering services, financing or financial assistance, related to gold, precious metals or diamonds listed in Annex VII to the Council Regulation to a person falling within paragraph (2).

(2) The following persons fall within this paragraph—

(a)the Government of North Korea, its public bodies, corporations and agencies;

(b)the Central Bank of North Korea; and

(c)any person acting on behalf or at the direction of, or any legal person owned or controlled by a person falling within sub-paragraph (a) or (b).

Offences related to the provision of access to ports

10J. —(1) It is an offence for a person (“P”) to provide access to ports in the Territory to any vessel that P knows or has reasonable cause to suspect—

(a)[^F58 is owned, operated, crewed or flagged by North Korea;^F58]

(b)is owned or controlled directly or indirectly by a person listed in [^F59 Annex XIII, XV, XVI, or XVII^F59] to the Council Regulation;

(c)contains restricted goods, luxury goods, aviation fuel, gold and ores, coal, iron and iron ore, petroleum products or any other goods prohibited under this Order;

(d)has refused to be inspected for carriage of goods prohibited by this Order after such inspection has been authorised by the vessel’s flag State; or

(e)is without nationality and has refused to be inspected for carriage of goods prohibited by this Order.

[^F60 (f)is a designated vessel that the Committee has required be denied access to the ports of United Nations Member States.^F60]

(2)[^F61 Paragraph (1) does not apply if—

(a)access to a port is needed by the vessel in the case of emergency;

(b)in the case of a vessel referred to in paragraph (1)(a) to (e), the vessel is coming into port for inspection; or

(c)the vessel is returning to its port of origin.^F61]

(3) This article is subject to articles 11 and 12.^F57]

[^F62 10JA.—(1) When so required by the Committee, the Governor may de-flag a designated vessel flagged to the territory.

(2) When so required by the Committee, the Governor may direct the master of a designated vessel flagged to the territory to take that vessel to a port identified by the Committee, such direction to be given in co-ordination with the port State.

(3) A person (“P”) commits an offence if P fails to comply with a direction given by the Governor under paragraph (2). ^F62]

[^F63Offences related to the leasing, chartering, insuring and registering of vessels and the provision of crew services^F63]

10K. —(1) A person “P” commits an offence if P leases or charters a vessel or aircraft, or provides crew services, with knowledge or reasonable cause to suspect that the lease, charter or provision of crew services is to—

(a)North Korea;

(b)a person listed in Annex XIII, XV, XVI or XVII to the Council Regulation;

(c)a North Korean entity;

(d)a person who has assisted in violating the provisions of United Nations Security Council resolutions referred to in Article 43(a) of the Council Regulation; or

(e)a person acting on behalf of or at the direction of—

(i)a person referred to in subparagraph (a), (b), (c) or (d); or

(ii)an entity owned or controlled by a person referred to in subparagraph (a), (b), (c) or (d).^F64]

(2) A person (“P”) commits an offence if P owns, leases, [^F65 charters, ^F65] insures, operates, or provides vessel classification services or associated services to a vessel which P knows or has reasonable cause to suspect is flagged to North Korea.

[^F66 (3) A person (“P”) commits an offence if P registers or maintains on a register a vessel which P knows or has reasonable cause to suspect is owned, controlled or operated by North Korea or North Korean nationals.

(4) A person (“P”) commits an offence if P registers or maintains on a register a vessel which P knows or has reasonable grounds to suspect has been de-registered by another State pursuant to paragraph 24 of United Nations Security Council resolution 2321 of 30th November 2016 [^F67 or paragraph 8 of United Nations Security Council resolution 2375 of 11th September 2017 ^F67] .

(5) A person (“P”) commits an offence if P provides insurance or re-insurance services to a vessel that P knows, or has reasonable cause to suspect, is owned, controlled, or operated by North Korea.

(6) Paragraphs (1), (2), (3) and (5) are subject to articles 11 and 12.^F66,F54,F48]]]

[^F68Procurement of vessel or aircraft crew services from North Korea

10KA. —(1) A person (“P”) commits an offence if P knowingly procures vessel or aircraft crew services from North Korea.

(2) This article is subject to articles 11 and 12.^F68]

[^F69Investment in commercial activity

10L. —(1) A person (“P”) commits an offence if P accepts or approves investment in any commercial activity knowing or having reasonable cause to suspect that such investment is made by—

(a)a person falling within paragraph (2);

(b)a person acting on behalf, or at the direction of, a person falling within paragraph (2); or

(c)a legal person owned or controlled by a person falling within paragraph (2).

(2) The following persons fall within this paragraph—

(a)the Government of North Korea, its public bodies, corporations and agencies;

(b)the Worker’s Party of Korea;

(c)a North Korean national; or

(d)a person incorporated or constituted under the law of North Korea.

Joint ventures and ownership interests

10M. —(1) A person (“P”) commits an offence if P—

[^F70 (a)establishes [^F71 , maintains, or operates^F71] a joint venture or cooperative entity with; or^F70]

(b)takes or extends an ownership interest in, including by acquisition in full or the acquisition of shares and other securities,

[^F72 a person referred to in article 10L(1)(a), (b) or (c), knowing or having reasonable cause to suspect that the joint venture or ownership interest is with or in such a person^F72] .

[^F73 (2) This article is subject to articles 11 and 12.^F73]

[^F74 (3) A person (“P”) commits an offence if P does not close any existing joint venture or cooperative entity referred to in paragraph (1) over which P has sufficient control within 120 days of the adoption of United Nations Security Council Resolution 2375 (2017) of 11th September 2017.

(4) Paragraphs (1) and (3) do not apply if—

(a)the Committee has approved the joint venture or cooperative entity; or

(b)an application has been lodged with the Committee to approve the joint venture or cooperative entity and—

(i)the decision of the Committee is pending, or

(ii)the Committee has given notice that it has not approved the joint venture or cooperative entity and 120 days have not elapsed since the date of that notice.^F74]

[^F75Financing or financial assistance to North Korean persons

10N. —(1) A person (“P”) commits an offence if P grants financing or financial assistance knowing or having reasonable cause to suspect that it is granted to—

(a)a person incorporated or constituted under the law of North Korea; or

(b)a person acting on behalf or at the direction of, or a person owned or controlled by, a person referred to in sub-paragraph (a).

(2) This article is subject to articles 11 and 12.^F75]

Provision of investment services

10O. A person (“P”) commits an offence if P provides investment services knowing or having reasonable cause to suspect that such investment services are directly [^F76 or indirectly ^F76] related to an activity prohibited under article 10M or 10N.

Transfers of funds to and from North Korea

10P. —(1) A person (“P”) commits an offence if P transfers funds [^F77 , including clearing of funds, ^F77] knowing or having reasonable cause to suspect that the transfer is to or from North Korea.

(2) A credit or financial institution (“P”) commits an offence if P enters into or continues to participate in any transaction, knowing or having reasonable cause to suspect that the transaction is with—

(a)a credit or financial institution domiciled in North Korea;

(b)a branch or subsidiary of a credit or financial institution domiciled in North Korea, regardless of the location of such branch or subsidiary; or

(c)a credit or financial institution listed in Annex VI to the Council Regulation.

(3) Paragraphs (1) and (2) do not apply if—

(a)the transaction falls within paragraph (5) and involves a transfer of funds equal to or below EUR15,000 or equivalent; or

(b)the transaction is necessary for the official purposes of a diplomatic or consular mission or an international organisation enjoying immunities in North Korea in accordance with international law.

(4) In determining the value of a transfer of funds for the purpose of paragraph (3)(a), where the transfer is executed in one or more operations which appear to be linked, the total value shall be the sum of the value of all linked transfers.

(5) A transaction falls within this paragraph if it concerns—

(a)foodstuffs, healthcare, or medical equipment, or is for agricultural or humanitarian purposes;

(b)personal remittances;

(c)the carrying out of acts permitted under this Order;

(d)a specific trade contract not prohibited by this Order;

(e)official purposes of a diplomatic or consular mission or an international organisation enjoying immunities in accordance with international law; or

(f)implementation of projects funded by the European Union or its Member States for development purposes directly addressing the needs of the civilian population or the promotion of denuclearisation.

(6) This article is subject to articles 11 and 12.^F69]

[^F78Provision of financing or financial assistance for trade with North Korea

10Q. —(1) A person (“P”) commits an offence if P knowingly provides financing or financial assistance for trade with North Korea, including the granting of guarantees, to any person involved in such trade.

(2) Paragraph (1) is subject to articles 11 and 12.

Provision of bank accounts

10R. —(1) A person (“P”) commits an offence if P provides a new bank account to, or fails to close within 90 days of 5th April 2017 an existing bank account of, a North Korean diplomatic mission, consular post, or one of their members.

(2) Paragraph (1) is subject to articles 11 and 12.

Use of real property

10S. —(1) A person (“P”) commits an offence if P leases or otherwise makes available, directly or indirectly, real property to the Government of North Korea, where P knows or has reasonable cause to suspect that the property is to be used for any purpose other than the official purposes of a diplomatic mission or consular post.

(2) A person (“P”) commits an offence if P leases real property from the Government of North Korea.

(3) A person (“P”) commits an offence if P engages in any activity that P knows or has reasonable cause to suspect is linked to the use of real property that the Government of North Korea owns, leases or is otherwise entitled to use.

(4) Paragraph (3) does not apply to the provision of goods and services which are:

(a)essential for the functioning of a diplomatic mission or consular post; and

(b)cannot be used to generate income or profit directly or indirectly for the Government of North Korea.^F78]

[^F79 (5) This article is subject to articles 11 and 12.^F79]

[^F80Provision of services in the chemical, mining and refining industry

10T. —(1) A person (“ P ”) commits an offence if P provides, directly or indirectly, a service falling within paragraph (2) where P knows or has reasonable cause to suspect that the services are provided—

(a)to a person in North Korea; or

(b)for use in North Korea.

(2) The services falling within this paragraph are services incidental to mining or manufacturing in the chemical, mining and refining industry, as set out in Part A of Annex VIII to the Council Regulation.

(3) Paragraph (1) does not apply if the services are provided before 16th November 2017 in accordance with—

(a)a contract or other legally binding agreement concluded before 16th August 2017; or

(b)any other legal obligation arising before 16th August 2017.

(4) This article is subject to articles 11 and 12.

Provision of computer and related services

10U. —(1) A person (“ P ”) commits an offence if P provides, directly or indirectly, services falling within paragraph (2) where P knows or has reasonable cause to suspect that the services are provided—

(a)to a person in North Korea; or

(b)for use in North Korea.

(2) The services falling within this paragraph are computer and related services as set out in Part B of Annex VIII to the Council Regulation.

(3) Paragraph (1) does not apply if the services are provided—

(a)exclusively for the official purposes of a diplomatic or consular mission or an international organisation enjoying immunities in North Korea in accordance with international law; or

(b)by a public body or a person in receipt of funding from the European Union or a Member State of the European Union for development purposes that directly address the needs of the civilian population or the promotion of denuclearisation.

(4) Paragraph (1) does not apply if the services are provided before 16th November 2017 in accordance with—

(a)a contract or other legally binding agreement concluded before 16^th August 2017; or

(b)ancillary contracts necessary for the execution of such contracts.

(5) This article is subject to articles 11 and 12.^F80]

PART 3 General

Licences granted by the Governor_I10

11.—(1) The Governor may, with the consent of the Secretary of State, grant a licence authorising an activity that would otherwise be prohibited under [^F81article 4, 7, 7A, 8, 9, 10, 10J, 10K(1), (2), (3) and (5), 10KA, 10M, 10N, 10P, 10Q, 10R, 10S, 10T or 10U^F81] .

(2) A person is not guilty of an offence under [^F82article 4, 7, 7A, 8, 9, 10, 10J, 10K(1), (2), (3) and (5), 10KA, 10M, 10N, 10P, 10Q, 10R, 10S, 10T or 10U^F82] in respect of anything done by the person under the authority of a licence granted by the Governor.

[^F83 (3) A licence may, in particular, relate to—

(a)non-combat vehicles which have been manufactured or fitted with materials to provide ballistic protection, intended solely for protective use of personnel of the European Union and its member States in North Korea;

(b)payment of basic expenses of designated persons and their dependent family members, including payments for foodstuffs, rent or mortgage, medicines, medical treatment, taxes, insurance premiums and public utility charges;

(c)payment of reasonable professional fees and expenses associated with the provision of legal services;

(d)payment of fees or service charges for the routine holding or maintenance of frozen funds or economic resources;

(e)payment of necessary extraordinary expenses;

(f)[^F84 satisfaction of a judicial, administrative or arbitral decision or judgment rendered before the designated person was so designated, provided it is not for the benefit of a designated person;^F84]

[^F85 (g)the purchase, import or transfer of coal provided that the Governor has determined on the basis of credible information that—

(i)the shipment originated outside of North Korea and was transported through North Korea solely for export from the Port of Rajin (Rason), and

(ii)the transactions are unrelated to generating revenue for North Korea’s nuclear or ballistic missile programmes or other activities prohibited by this Order.^F85]

(h)transactions that the Governor has determined to be exclusively for livelihood purposes and unrelated to generating revenue for North Korea’s nuclear or ballistic missile programmes or other activities prohibited by this Order;

(i)goods which do not relate to the production, development, maintenance or use of military goods, or the maintenance of military personnel, and which the Governor has determined would not directly contribute to the development of the operational capabilities of armed forces of North Korea, or support or enhance the operational capabilities of the armed forces of a State other than North Korea;

(j)goods which the Governor has determined are exclusively for either humanitarian or livelihood purposes which will not be used by North Korean persons to generate revenue, and are not related to any activity prohibited by this Order;

(k)aviation fuel which the Governor has determined to be for verified essential humanitarian needs;

(l)funds and economic resources which the Governor has determined are required for the delivery of humanitarian assistance, denuclearisation or any purpose consistent with the objectives of United Nations Security Council resolution 2270 of 2nd March 2016; or

[^F86 (m)the owning, leasing, operating, chartering or provision of vessel classification services or associated services to any North Korea flagged vessel;^F86]

[^F87 (ma)the registration, or maintenance on the register, of a vessel that is owned, controlled, or operated by North Korea or North Korean nationals;^F87]

[^F88 (n)payment by a designated person due under a contract, agreement or obligation that was concluded or arose before the designated person was so designated provided that the Governor has determined—

(i)the contract is not related to any item, operation, service or transaction referred to in article 7(1), (3) or (5) as regards restricted goods, article 8 or article 9, and

(ii)the payment is not directly or indirectly for the benefit of a person listed in Annex V to the Council Regulation;

[^F89 (o)access to ports for humanitarian or other purposes consistent with the objectives of the United Nations Security Council resolutions referred to in paragraph 6 of United Nations Security Council resolution 2371 of 5 August 2017;^F89]

(p)payment or a transaction of a similar nature to satisfy a claim against North Korea, its nationals or persons incorporated under the law of North Korea, provided that the Governor has determined that the payment or transaction does not contribute to activities prohibited by this Order;

(q)a transaction in excess of EUR15,000 or equivalent, provided that the Governor is satisfied that the transaction falls within article 10P(5);

(r)a transaction in respect of luxury goods referred to in point 17 of Annex III to the Council Regulation, provided that the Governor has determined that the goods are for humanitarian purposes;

(s)sale, supply, transfer or export of restricted goods, provided that the Governor has determined that the goods are for food, agricultural, medical or other humanitarian purposes; and

(t)assistance in respect of restricted goods, provided that the Governor has determined that the goods are for food, agricultural, medical or other humanitarian purposes.^F88]

[^F90 (u)the provision of insurance or reinsurance services to vessels owned, controlled, or operated by North Korea, provided that the Governor is satisfied the vessel is engaged in activities exclusively for humanitarian purposes, or exclusively for livelihood purposes and will not be used by North Korean persons to generate revenue;

(v)the opening or retaining of one bank account per North Korean diplomatic mission, consular post, or one of their members, provided that the mission or post is hosted in the United Kingdom and does not hold any other bank account in the territory of the European Union or any of the Territories listed in Schedule 1;

[^F91 (w)any activity that the Governor is satisfied is necessary to facilitate the work of international or non-governmental organisations carrying out assistance and relief activities in North Korea for the benefit of the civilian population of North Korea or for any purpose consistent with the objectives of the following United Nations Security Council resolutions—

(i)1718 adopted on 14 October 2006,

(ii)1874 adopted on 12 June 2009,

(iii)2087 adopted on 22 January 2013,

(iv)2094 adopted on 7 March 2013,

(v)2270 adopted on 2 March 2016,

(vi)2321 adopted on 30 November 2016,

(vii)2356 adopted on 2 June 2017 ,

(viii)2371 adopted on 5 August 2017, or

(ix)2375 adopted on 11 September 2017;^F91]

(x)access to a port that the Committee has directed the vessel to enter.^F90]

[^F92 (y)the provision of services falling within paragraph (2) of article 10T which the Governor has determined are to be used exclusively for development purposes directly addressing the needs of the civilian population or the promotion of denuclearisation; ^F93...

(z)the provision of computer and related services falling within paragraph 2 of Article 10U which the Governor has determined are to be provided exclusively for development purposes directly addressing the needs of the civilian population or the promotion of denuclearisation [^F94 ; ^F95...^F94,F92]]

[^F96 (z1)the sale, supply, transfer or export of refined petroleum products which the Governor has determined to be exclusively for livelihood purposes of the civilian population of North Korea and which satisfy the requirements of the Council Resolution; or

(z2)the sale, supply, transfer or export of crude oil which the Governor determines satisfies the requirements of paragraph 15 of United Nations Security Council resolution 2375 of 11 September 2017.^F96]

(4) A licence must specify the acts authorised by it and may be—

(a)general or granted to a category of persons or to a particular person,

(b)subject to conditions, and

(c)of indefinite duration or subject to an expiry date.

(5) The Governor may, with the consent of the Secretary of State, vary or revoke a licence at any time.

(6) On the grant, variation or revocation of a licence, the Governor must—

(a)in the case of a licence granted to a particular person, give written notice of the grant, variation or revocation to that person, and

(b)in the case of a general licence or a licence granted to a category of persons, take such steps as the Governor considers appropriate to publicise the grant, variation or revocation of the licence.

(7) Any notice to be given to a person by the Governor under paragraph (6) may be given—

(a)by posting it to the person’s last known address, or

(b)where the person is a body corporate, partnership or unincorporated body other than a partnership, by posting it to the registered or principal office in the Territory of the body or partnership.

(8) Where the Governor does not have an address in the Territory for the person, the Governor must make arrangements for the notice to be given to the person at the first available opportunity.

(9) Failing to comply with any condition in the licence is acting in a way that is not authorised by the licence unless—

(a)the licence was modified after the completion of the act authorised by the licence, and

(b)the alleged failure to comply with a condition in the licence would not have been a failure if the licence had not been so modified.

(10) It is an offence for a person to knowingly or recklessly make any statement or give any document or information which is false in a material particular for the purpose of obtaining a licence.

(11) A licence granted in connection with the application for which the false statement was made or the false document or information given is void from the time it was granted.^F83]

Licences granted outside the Territory_I11

12. A person is not guilty of an offence under [^F97article 4, 7, 7A, 8, 9, 10, 10J, 10K(1), (2), (3) and (5), 10KA, 10M, 10N, 10P, 10Q, 10R, 10S, 10T or 10U^F97] in respect of anything done by the person—

(a)outside the Territory, and

(b)under the authority of a licence granted in accordance with any provisions of the law in force in the place where it is done corresponding to the provisions of this Order.

[^F98Claims for indemnity or under contract

12A.—(1) No claim in connection with any contract or transaction, the performance of which has been affected, directly or indirectly, in whole or in part, by this Order shall be enforced if it is made by—

(a)a person listed in Annex IV or V to the Council Regulation;

(b)a person incorporated or constituted under the law of North Korea;

(c)the Government of North Korea, its public bodies, corporations and agencies;

(d)a person acting on behalf of a designated person; or

(e)a person acting on behalf of or at the direction of a person falling within sub-paragraph (a), (b), (c) or (d).

(2) Paragraph (1) applies in particular to any claim for indemnity or any other claim of this type, such as a claim for compensation or a claim under guarantee (including a financial guarantee or indemnity).

(3) In any proceedings for the enforcement of such a claim, the burden of proof that the claim is not prohibited is on the person seeking to enforce that claim.^F98]

[^F99Requirement to publish list of designated persons, restricted goods, luxury goods, aviation fuel, coal, iron and iron ore, gold and ores, and petroleum products

13.—(1) The Governor must—

(a)publish a list of—

(i)designated persons,

(ii)restricted goods,

(iii)luxury goods,

(iv)aviation fuel,

(v)coal, iron and iron ore,

(vi)gold and ores, and

(vii)petroleum products; and

(b)keep the list up to date.

(2) The Governor may publish a list under paragraph (1) in any form the Governor considers appropriate, including by means of a website.^F99]

Evidence and information_I12

14.[^F100 Schedule 4^F100] (which contains further provisions about obtaining evidence and information) has effect.

Functions of the Governor_I13

15.—(1) The Governor may, to such extent and subject to such restrictions and conditions as the Governor thinks proper, delegate or authorise the delegation of any of the Governor’s functions under this Order to any person, or class or description of persons.

(2) References in this Order to the Governor are to be construed accordingly.

(3) The Governor may by regulations specify in the currency of the Territory the amount which is to be taken as equivalent to sums expressed in sterling in this Order.

Circumvention and contravention of prohibitions_I14

16. It is an offence for a person to intentionally participate in an activity, knowing that the object or effect of the activity is (directly or indirectly)—

(a)to circumvent any of the prohibitions in articles [^F101article 4, 7 or 7A to 10U^F101] , or

(b)to enable or facilitate the contravention of any such prohibition.

Penalties_I15

17.—(1) A person guilty of an offence under [^F102article 4, 7, 7A, 8, 9, 10, 10H, 10I(1)(a) or 16^F102] is liable—

(a)on conviction on indictment, to imprisonment for a term not exceeding seven years or to a fine or to both; or

(b)on summary conviction, to imprisonment for a term not exceeding six months or to a fine not exceeding £5,000 or its equivalent or to both.

(2) A person guilty of an offence under article 6 [^F103, 10A, 10B, 10C, 10D, [^F104 10E, 10F, 10G, 10I(1)(b), 10I(1)(c), 10J, 10K^F104] [^F105 , [^F106 10KA,^F106] 10L, 10M, 10N, 10O, 10P(1), 10P(2)^F105,F103]] , [^F10610Q, 10R, 10S ^F106][^F107 , 10T, 10U,^F107] or 11(10), paragraph 2(2)(b) or paragraph 3(6)(b) or (c) of Schedule 2, or paragraph 3(b), (c) or (d) of [^F108Schedule 4^F108] is liable—

(a)on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both; or

(b)on summary conviction, to imprisonment for a term not exceeding six months or to a fine not exceeding £5,000 or its equivalent or to both.

(3) A person guilty of an offence under [^F109article 10JA(3) or^F109] paragraph 3(6)(a) of Schedule 2, or paragraph 3(a) or paragraph 5 of [^F108Schedule 4^F108] is liable on summary conviction to imprisonment for a term not exceeding six months or to a fine not exceeding £5,000 or its equivalent or to both.

(4) A person guilty of an offence under paragraph 1, 2(2)(a) or 2(5) of Schedule 2 is liable on summary conviction to a fine not exceeding £5,000 or its equivalent.

(5) If an offence under this Order committed by a body corporate is shown—

(a)to have been committed with the consent or connivance of an officer of the body corporate, or

(b)to be attributable to any neglect on the part of an officer of the body corporate,

the officer as well as the body corporate is guilty of an offence and is liable to be proceeded against and punished accordingly.

Proceedings_I16

18.—(1) Proceedings against a person for an offence may be taken before the appropriate court in the Territory having jurisdiction in the place where that person is for the time being.

(2) Summary proceedings for an offence alleged to have been committed outside the Territory may be instituted within the period of 12 months beginning with the date on which the person charged first enters the Territory after committing the offence.

(3) Proceedings for an offence must not be instituted in the Territory except with the consent of the principal public officer of the Territory responsible for criminal prosecutions.

(4) Nothing in paragraph (3) prevents—

(a)the arrest, or the issue or execution of a warrant for the arrest, of any person in respect of an offence, or

(b)the remand in custody or on bail of any person charged with an offence.

(5) A reference in this article to an offence is to an offence under this Order.

Article 1(3)

SCHEDULE 1 Territories to which this Order extends _I17

• Anguilla

• British Antarctic Territory

• British Indian Ocean Territory

• Cayman Islands

• Falkland Islands

• Montserrat

• Pitcairn, Henderson, Ducie and Oeno Islands

• St Helena, Ascension and Tristan da Cunha

• South Georgia and the South Sandwich Islands

• The Sovereign Base Areas of Akrotiri and Dhekelia in the Island of Cyprus

• Turks and Caicos Islands

• Virgin Islands

Article 7

SCHEDULE 2 Customs powers and investigations

Power to demand evidence of destination of restricted goods or luxury goods_I18

1.—(1) An authorised officer may require a person who exports or carries restricted goods or luxury goods from the Territory to provide proof to the officer’s satisfaction that the goods have reached an authorised destination.

(2) For the purposes of sub-paragraph (1), “an authorised destination” means a destination to which the exportation or carriage of the goods is—

(a)authorised by a licence granted by the Governor under article 11, or

(b)not otherwise prohibited under this Order.

(3) It is an offence for a person (“P”) to fail to comply with a requirement under sub-paragraph (1), unless P proves that the goods reached a destination other than an authorised destination without P’s consent or connivance.

[^F110Requirement for declaration as to carriage of [^F111certain items^F111] : power to search persons^F110] _I19

2. [^F112 —(1) An authorised officer may require a person who is in or about to leave the Territory (“P”) to—

(a)declare whether P is carrying restricted goods, luxury goods, gold and ores, coal, iron and iron ore [^F113 , aviation fuel [^F114 , petroleum products, copper, nickel, silver and zinc, helicopters and vessels, [^F115 statues, seafood, lead and lead ore, condensates and natural gas liquids, refined petroleum products, crude oil, or textiles^{F115,F114,F113}]]] which—

(i)has originated in North Korea,

(ii)is destined for North Korea, or

(iii)is destined for delivery (directly or indirectly) to, or to the order of, any person in North Korea; and

(b)produce any such goods that P is carrying.^F112]

(2) It is an offence for P to—

(a)fail without reasonable excuse to comply with a requirement under sub-paragraph (1), or

(b)knowingly or recklessly make a declaration which is false in a material particular.

(3) An authorised officer may search P for the purpose of finding out whether P is carrying [^F116restricted goods, luxury goods, gold and ores, coal, iron and iron ore [^F117 , aviation fuel [^F118 , petroleum products, copper, nickel, silver and zinc, helicopters and vessels, [^F119 statues, seafood, lead and lead ore, condensates and natural gas liquids, refined petroleum products, crude oil, or textiles^{F119,F118,F117,F116}]]]] .

(4) A search under sub-paragraph (3) must be carried out by a person of the same sex as P.

(5) It is an offence for P to fail without reasonable excuse to comply with a request to be searched under sub-paragraph (3).

Investigation of suspected ships, aircraft or vehicles_I20

3.—(1) Where an authorised officer reasonably suspects that a ship, aircraft or vehicle has been, is being, or is about to be used in the commission of an offence under [^F120article 7(4), (5), 7A(3), or 10(3)^F120] , the officer may—

(a)stop and enter it;

(b)search it;

(c)require the relevant person to provide such information relating to the ship, aircraft or vehicle and any goods it is carrying, and produce for inspection such documents and goods, as the officer may specify;

(d)in relation to a ship, require the relevant person to do anything mentioned in sub-paragraph (2);

(e)in relation to an aircraft or vehicle, require the relevant person to keep the aircraft or vehicle and any goods it is carrying in the Territory until notified by an authorised officer that it may depart.

(2) Further to sub-paragraph (1)(d), the officer may require the relevant person to do any of the following—

(a)stop the ship from proceeding with the voyage on which it is engaged, or about to engage, until notified by an authorised officer that it may proceed;

(b)not land any part of the ship’s cargo at any port specified by the officer, except with the officer’s consent;

(c)if the ship is in port in the Territory, cause it to remain there until notified by an authorised officer that it may depart;

(d)if the ship is in any other place, take it to a port specified by the officer and keep it there until notified by an authorised officer that it may depart.

(3) The officer may take such steps as appear necessary to carry out a search under sub-paragraph (1)(b), or secure compliance with a requirement under sub-paragraph (1)(c), (d) or (e), including in particular—

(a)entering any land,

(b)using reasonable force, and

(c)detaining the ship, aircraft or vehicle and any goods it is carrying.

(4) The officer may seize any [^F121restricted goods, luxury goods, gold and ores, coal, iron and iron ore [^F122 , aviation fuel [^F123 , petroleum products, copper, nickel, silver and zinc, helicopters and vessels, [^F124 statues, seafood, lead and lead ore, condensates and natural gas liquids, refined petroleum products, crude oil, or textiles^{F124,F123,F122,F121}]]]] from the ship, aircraft or vehicle.

(5) Any [^F125restricted goods, luxury goods, gold and ores, coal, iron and iron ore [^F122 , aviation fuel [^F126 , petroleum products, copper, nickel, silver and zinc, helicopters and vessels, [^F127 statues, seafood, lead and lead ore, condensates and natural gas liquids, refined petroleum products, crude oil, or textiles^{F127,F126,F122,F125}]]]] seized may be forfeited, disposed of or transferred as appropriate.

(6) It is an offence for a relevant person to—

(a)fail without reasonable excuse to comply with a requirement under sub-paragraph (1)(c), (d) or (e),

(b)knowingly or recklessly provide information or a document which is false in a material particular in response to a requirement under sub-paragraph (1)(c), or

(c)otherwise intentionally obstruct an authorised officer, or a person acting under the officer’s authority, in the exercise of any power conferred by this paragraph.

Exercise of customs powers: general_I21

4.—(1) Any power exercisable by an authorised officer under this Schedule may be exercised by a person acting under the officer’s authority.

(2) An authorised officer, or a person acting under the officer’s authority, must, if requested to do so, produce evidence of his or her authority before exercising any power conferred by this Schedule.

(3) Any power conferred by this Schedule to require information, or produce for inspection a document or goods, includes a power to specify the form in which the information or document should be given, and the period within which the information, document or goods should be provided or produced for inspection.

(4) An authorised officer may exercise any power conferred by paragraph 3 in relation to—

(a)any ship within the seaward limits of the territorial sea of the Territory,

(b)a ship registered in the Territory while it is on the high seas, or

(c)any aircraft or vehicle in the Territory.

(5) But a power conferred by paragraph 3 may not be exercised in relation to a ship falling within sub-paragraph (6) unless—

(a)in the case of a ship falling only within sub-paragraph (6)(a), the Territory is entitled under international law to exercise the power without the consent of the flag state, or

(b)in any other case, the Governor, with the consent of the Secretary of State, has authorised the exercise of the power.

(6) A ship falls within this sub-paragraph if it is—

(a)a ship flying the flag of, or registered in, a State or territory other than the Territory,

(b)a warship that belongs to a government of a State or territory other than the Territory, or

(c)any other ship that is being used by such a government only for non-commercial purposes.

(7) The Governor may authorise the exercise of a power under sub-paragraph (5)(b) only if the flag state has consented to the Territory exercising the power (whether generally or in relation to the ship in question).

(8) In giving such authority, the Governor must impose such conditions or limitations on the exercise of the power as are necessary to give effect to any conditions or limitations imposed by the flag state.

(9) This Schedule is without prejudice to any other provision of law conferring powers, imposing restrictions or enabling restrictions to be imposed in respect of ships, aircraft or vehicles.

Interpretation_I22

5. In this Schedule—

“authorised officer” means—

“high seas” means seas that are not within the seaward limits of—

^F128...

Article 2(2)

[^F129SCHEDULE 3 Application of Article 17 to particular Territories

Application of article 17

1.—(1) Article 17 applies as follows to the Sovereign Base Areas of Akrotiri and Dhekelia in the Island of Cyprus, the Falkland Islands, South Georgia and the South Sandwich Islands, and St Helena, Ascension and Tristan da Cunha.

(2) A person guilty of an offence under article 4, 7, 7A, 8, 9, 10, 10H, 10I(1)(a) or 16 is liable on conviction to imprisonment for a term not exceeding seven years or to a fine or to both.

(3) A person guilty of an offence under article 6, 10A, 10B, 10C, 10D, 10E, 10F, 10G, 10I(1)(b), 10I(1)(c), 10J, 10K, [^F130 10KA,^F130] [^F131 10L, 10M, 10N, 10O, 10P(1), 10P(2), [^F130 10Q, 10R, 10S,^F130] [^F132 10T, 10U,^F132,F131]] 11(10), paragraph 2(2)(b) or paragraph 3(6)(b) or (c) of Schedule 2, or paragraph 3(b), (c) or (d) of Schedule 4 is liable on conviction to imprisonment for a term not exceeding two years or to a fine or to both.

(4) A person guilty of an offence under [^F133 article 10JA(3),^F133] paragraph 3(6)(a) of Schedule 2, or paragraph 3(a) or paragraph 5 of Schedule 4 is liable on conviction to imprisonment for a term not exceeding six months or to a fine not exceeding £5,000 or its equivalent or to both.

(5) A person guilty of an offence under paragraph 1, 2(2)(a) or 2(5) of Schedule 2 is liable on conviction to a fine not exceeding £5,000 or its equivalent.

(6) If an offence under this Order committed by a body corporate is shown—

(a)to have been committed with the consent or connivance of an officer of the body corporate; or

(b)to be attributable to any neglect on the part of an officer of the body corporate,

the officer as well as the body corporate is guilty of the offence and is liable to be proceeded against and punished accordingly.^F129]

Article 14

SCHEDULE [^F1344^F134] Evidence and information

Power to require information or documents_I23

1.—(1) An authorised officer may request any person in, or resident in, the Territory to provide any information or produce any document in the person’s possession or control which the officer may require for the purpose of—

(a)securing compliance with, or detecting evasion of, this Order,

(b)obtaining evidence of the commission of an offence under this Order,

(c)establishing the nature and amount or quantity of any funds or economic resources owned, held or controlled by a designated person,

(d)establishing the nature of any financial transactions entered into by a designated person, or

(e)cooperating with any international investigation in accordance with article 6(1).

(2) When exercising the power in sub-paragraph (1), an authorised officer may—

(a)take copies of or extracts from any document so produced,

(b)request any person producing a document to give an explanation of it, and

(c)where that person is a body corporate, request any person who is a present or past officer or employee of the body corporate to give such an explanation.

(3) Any person to whom a request is made must comply with it within such time and in such manner as may be specified in the request.

(4) Nothing in this paragraph is to be taken to require any person who has acted as counsel or solicitor for any person to disclose any privileged information or document in the person’s possession in that capacity.

Powers of search and entry to obtain evidence or information_I24

2.—(1) A justice of the peace may grant a search warrant if satisfied by information on oath that—

(a)there are reasonable grounds for suspecting that—

(i)an offence under this Order has been or is being committed, or

(ii)information or a document requested by an authorised officer under paragraph 1 has not been provided or produced; and

(b)evidence of the commission of the offence, or the information or document so requested, is to be found on a ship, aircraft, vehicle or premises specified in the information.

(2) A search warrant issued under this paragraph is a warrant empowering an authorised officer to enter and search the ship, aircraft, vehicle or premises specified in the information, at any time within one month from the date of the warrant.

(3) An authorised officer who enters and searches a ship, aircraft, vehicle or premises under a warrant issued under this paragraph may—

(a)take such other persons and such equipment on to the ship, aircraft, vehicle or premises as appear to the officer to be necessary;

(b)inspect and seize anything found in the course of a search if the officer reasonably suspects that—

(i)it is evidence in relation to an offence under this Order,

(ii)it is information or a document requested (but not provided or produced) under paragraph 1, or

(iii)it is necessary to seize it in order to prevent it being concealed, lost, damaged, altered or destroyed;

(c)take copies of any document;

(d)require information which is stored in an electronic form and is accessible from the premises to be produced in a form in which it can be taken away and in which it is visible and legible (or from which it can readily be produced in a visible and legible form).

(4) An authorised officer may, if necessary, use reasonable force in the exercise of the powers conferred by this paragraph.

(5) Anything seized under sub-paragraph (3) may be retained for so long as is necessary in all the circumstances.

(6) An authorised officer who enters a ship, aircraft, vehicle or premises under a warrant issued under this paragraph, or by virtue of sub-paragraph (3)(a), may—

(a)search any person found on the ship, aircraft, vehicle or premises whom the officer has reasonable cause to believe to be in possession of anything which may be required as evidence for the purposes of proceedings in respect of an offence under this Order, and

(b)seize anything found in such a search.

(7) A search of a person under sub-paragraph (6) must be carried out by a person of the same sex.

(8) The powers in this paragraph are without prejudice to the powers in paragraph 3 of Schedule 2.

Offences relating to information etc._{I25,I26,I27,I28,I29,I30}

3. It is an offence for a person to—

(a)without reasonable excuse, refuse or fail within the time and in the manner specified (or, if no time has been specified, within a reasonable time) to comply with any request made under this Schedule,

(b)knowingly or recklessly give any information, or produce any document, which is false in a material particular in response to such a request,

(c)destroy, mutilate, deface, conceal or remove any document with intent to evade the provisions of this Schedule, or

(d)otherwise intentionally obstruct any person in the exercise of that person’s powers under this Schedule.

4. Where a person is convicted of an offence under paragraph 3(a), the court may make an order requiring the person, within such period as may be specified in the order, to give the requested information or produce the requested document.

5.—(1) It is an offence for a person to disclose information or a document obtained in accordance with this Order (including a copy or extract made of such a document) except—

(a)to a person who would have been authorised to request the information or document under this Order;

(b)to a person holding or acting in any office under or in the service of—

(i)the Crown in right of the Government of the United Kingdom,

(ii)the Government of the Isle of Man,

(iii)the States of Guernsey or Alderney or the Chief Pleas of Sark,

(iv)the States of Jersey, or

(v)the Government of any British overseas territory;

(c)for the purpose of giving assistance or cooperation, with the authority of the Governor, to—

(i)any organ of the United Nations, or

(ii)any person in the service of the United Nations, the Council of the European Union, the European Commission or the government of any State or territory;

(d)with a view to instituting, or otherwise for the purposes of, any proceedings—

(i)in the Territory, for an offence under this Order, or

(ii)in the United Kingdom, any of the Channel Islands, the Isle of Man or any British overseas territory (other than the Territory), for an offence under a similar provision in any such jurisdiction;

(e)to [^F135the Financial Conduct Authority of the United Kingdom, the Prudential Regulation Authority of the United Kingdom^F135] or to the relevant authority with responsibility in any other State or territory for regulating and supervising financial services business; or

(f)to any third party, with the consent of a person who, in the person’s own right, is entitled to the information or to possession of the document, copy or extract.

(2) In sub-paragraph (1)(f) “in the person’s own right” means not merely in the person’s capacity as a servant or agent of another person.

6. An authorised officer must, if requested to do so, produce evidence of his or her authority before exercising any power conferred by this Schedule.

7. In this Schedule “authorised officer” means—

(a)a police or customs officer, or

(b)a person authorised by the Governor for the purposes of this Schedule, whether generally or in a particular case.

8. Anything done in accordance with this Schedule is not to be treated as a breach of any restriction imposed by statute or otherwise.