Regulations Implementing the United Nations Resolutions on the Democratic People’s Republic of Korea (DPRK)

Regulations Implementing the United Nations Resolutions on the Democratic People’s Republic of Korea (DPRK) Whereas the Security Council of the United Nations, acting under Article 41 of the Charter of the United Nations, adopted Resolution 1718 (2006) on October 14, 2006; And whereas it appears to the Governor in Council to be necessary to make regulations for enabling the measures set out in that Resolution to be effectively applied; Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, pursuant to section 2 of the United Nations Act, hereby makes the annexed Regulations Implementing the United Nations Resolution on the Democratic People’s Republic of Korea. The following definitions apply in these Regulations. armoured combat vehicles[Repealed, SOR/2009-232, s. 2] arms and related material means any type of weapon, ammunition, military equipment including military vehicles, or paramilitary equipment, and their spare parts. (armes et matériel connexe) attack helicopters[Repealed, SOR/2009-232, s. 2] battle tanks[Repealed, SOR/2009-232, s. 2] bulk cash means an amount of currency of any country whose total value is greater than $10,000 in Canadian currency. (grande quantité d’argent en espèces) Canadian means a citizen within the meaning of the Citizenship Act, or an entity established, incorporated or continued by or under the laws of Canada or of a province. (Canadien) combat aircraft[Repealed, SOR/2009-232, s. 2] Committee of the Security Council means the Committee of the Security Council established under paragraph 12 of Security Council Resolution 1718. (Comité du Conseil de sécurité) Democratic People’s Republic of Korea[Repealed, SOR/2009-232, s. 2] designated person means a person that is designated by the Committee of the Security Council under paragraph 8(d) or 12(e) of Security Council Resolution 1718 or by the Security Council under paragraph 8(d) of that resolution. (personne désignée) DPRK means the Democratic People’s Republic of Korea and includes its political subdivisions; its government and departments and the government and departments of its political subdivisions; and its agencies or any agency of its political subdivisions. (RPDC) entity includes a corporation, trust, partnership, fund, unincorporated association or organization or a foreign state. (entité) Focal Point for De-listing[Repealed, SOR/2020-119, s. 1] HS means the Harmonized Commodity Description and Coding System developed and maintained by the World Customs Organization. (SH) large-calibre artillery systems[Repealed, SOR/2009-232, s. 2] luxury goods includes jewelry, gems, precious and semi-precious stones, precious metals, lead crystal, tableware of porcelain or bone china, watches, cigarettes, alcoholic beverages, perfume, designer clothing and accessories, furs, rugs, tapestries, sporting goods, private aircraft, gourmet foods and ingredients, lobster, computers, televisions and other electronic devices and yachts, personal watercraft, snowmobiles and automobiles and other motor vehicles that are used to transport people, except those that are used for public transportation. (articles de luxe) Minister means the Minister of Foreign Affairs. (ministre) missiles and missile systems[Repealed, SOR/2009-232, s. 2] national means an individual who possesses the nationality of the DPRK as determined in accordance with the laws of the DPRK. (national) official means an individual who is or was employed in the service of Her Majesty in right of Canada or of a province; occupies or occupied a position of responsibility in the service of Her Majesty in right of Canada or of a province; or is or was engaged by or on behalf of Her Majesty in right of Canada or of a province. (fonctionnaire) person means an individual or an entity. (personne) property[Repealed, SOR/2018-1, s. 1] resources contributing to the Democratic People’s Republic of Korea’s weapons programme[Repealed, SOR/2009-232, s. 2] resources contributing to the DPRK’s weapons programme[Repealed, SOR/2016-278, s. 1] Security Council means the Security Council of the United Nations. (Conseil de sécurité) Security Council Resolution[Repealed, SOR/2009-232, s. 2] Security Council Resolution 1718 means Resolution 1718 (2006) of October 14, 2006 adopted by the Security Council. (résolution 1718 du conseil de sécurité) Security Council Resolution 1874 means Resolution 1874 (2009) of June 12, 2009 adopted by the Security Council. (résolution 1874 du conseil de sécurité) Security Council Resolution 2087 means Resolution 2087 (2013) of January 22, 2013, adopted by the Security Council. (résolution 2087 du Conseil de sécurité) Security Council Resolution 2094 means Resolution 2094 (2013) of March 7, 2013, adopted by the Security Council. (résolution 2094 du Conseil de sécurité) Security Council Resolution 2270 means Resolution 2270 (2016) of March 2, 2016, adopted by the Security Council. (résolution 2270 du Conseil de sécurité) Security Council Resolution 2321 means Resolution 2321 (2016) of November 30, 2016 adopted by the Security Council. (résolution 2321 du Conseil de sécurité) Security Council Resolution 2356 means Resolution 2356 (2017) of June 2, 2017 adopted by the Security Council. (résolution 2356 du Conseil de sécurité) Security Council Resolution 2371 means Resolution 2371 (2017) of August 5, 2017 adopted by the Security Council. (résolution 2371 du Conseil de sécurité) Security Council Resolution 2375 means Resolution 2375 (2017) of September 11, 2017 adopted by the Security Council. (résolution 2375 du Conseil de sécurité) Security Council Resolution 2397 means Resolution 2397 (2017) of December 22, 2017 adopted by the Security Council. (résolution 2397 du Conseil de sécurité) Security Council Resolutions means Security Council Resolution 1718, Security Council Resolution 1874, Security Council Resolution 2087, Security Council Resolution 2094, Security Council Resolution 2270, Security Council Resolution 2321, Security Council Resolution 2356, Security Council Resolution 2371, Security Council Resolution 2375 and Security Council Resolution 2397. (résolutions du Conseil de sécurité) technical assistance means any form of assistance, such as providing instruction, training, consulting services or technical advice or transferring know-how or technical data. (aide technique) technical data[Repealed, SOR/2016-278, s. 1] warships[Repealed, SOR/2009-232, s. 2] working day means a day that is neither a Saturday nor a holiday. (jour ouvrable) Prohibited activities It is prohibited for any person in Canada or any Canadian outside Canada to knowingly deal in any property in Canada that is owned, held or controlled, directly or indirectly, by a designated person or by a person acting on behalf of, or at the direction of, a designated person; enter into or facilitate any transaction related to a dealing referred to in paragraph (a); provide or acquire any financial or related services in respect of a dealing referred to in paragraph (a); make available any property to or for the benefit of a designated person, a person acting on behalf of or at the direction of a designated person or an entity that is owned, held or controlled, directly or indirectly, by a designated person; or provide any financial or related services to or for the benefit of any person or entity referred to in paragraph (d) or acquire any such services from or for the benefit of any such person or entity. Cash It is prohibited for any person in Canada or any Canadian outside Canada to knowingly supply or transfer, directly or indirectly, any bulk cash that is destined for the DPRK, for any person in the DPRK or for any national or to knowingly receive any bulk cash from the DPRK, from any person in the DPRK or from any national. Real property It is prohibited for any person in Canada or any Canadian outside Canada to knowingly sell or lease or otherwise make available real property to the DPRK, to a national or to any person acting on behalf or at the direction of the DPRK or a national. Embassies and consulates Subsection (1) does not apply to real property that is located in Canada and used exclusively for diplomatic or consular activities or to activities within the meaning of the Vienna Convention on Diplomatic Relations. Application For greater certainty, only the renewal of a lease that was entered into before the coming into force of these Regulations is subject to subsection (1) and that subsection does not apply to a lease that provided for that renewal. Providing financial or related services It is prohibited for any person in Canada or any Canadian outside Canada to knowingly provide financial or related services that are intended to facilitate trade with the DPRK to the DPRK, to any person in the DPRK or to a person acting on behalf of or at the direction of the DPRK or any person in the DPRK . Accepting financial or related services It is prohibited for any person in Canada or any Canadian outside Canada to accept any financial or related services that are intended to facilitate trade with the DPRK from the DPRK, from any person in the DPRK or from a person acting on behalf of or at the direction of the DPRK or any person in the DPRK. Exception — diplomatic missions Sections 2 and 4 do not apply to an activity that is intended solely for the support of diplomatic or consular missions in the DPRK and that is conducted by or in coordination with the United Nations, even if that activity involves the Foreign Trade Bank of the DPRK or the Korea National Insurance Corporation. Exception — humanitarian assistance Sections 2 and 4 do not prohibit the provision, processing or payment of funds, other financial assets or economic resources or the provision of goods and services that are necessary to ensure the timely delivery of humanitarian assistance or to support other activities that support basic human needs in the DPRK by the United Nations, including its programs, funds and other entities and bodies, as well as its specialized agencies and related organizations; international organizations; humanitarian organizations that have been granted observer status by the United Nations General Assembly and members of those humanitarian organizations; bilaterally or multilaterally funded non-governmental organizations that are participating in any United Nations humanitarian response plan, refugee response plan or other United Nations appeals for assistance or in groups of humanitarian organizations coordinated by the United Nations Office for the Coordination of Humanitarian Affairs, including the employees, grantees, subsidiaries and implementing partners of those non-governmental organizations while acting in those capacities; any other person authorized for that purpose by a United Nations committee established by the Security Council acting within its mandate. Exception — advance approval Sections 2 and 4 do not apply to an activity if the Committee of the Security Council has approved the activity in advance. Prohibited activities — entities referred to in section 19 It is prohibited for any entity referred to in section 19 to open a new office, branch, subsidiary or bank account in the DPRK. [Repealed, SOR/2016-278, s. 2] [Repealed, SOR/2013-219, s. 9] Joint ventures and cooperative entities It is prohibited for any person in Canada or any Canadian outside Canada to form, maintain or operate a joint venture or a cooperative entity with the DPRK or with any person in the DPRK. Maintaining operations A joint venture or cooperative entity may continue to operate, however, if the Committee of the Security Council has approved the maintenance of the operation. Embargo — specific products It is prohibited for any person in Canada or any Canadian outside Canada to knowingly sell, supply or transfer, directly or indirectly, any of the following products, wherever situated, to the DPRK or to any person in the DPRK: arms and related material; the vehicles, aircrafts, vessels and associated transport equipment referred to in HS codes 86 to 89; luxury goods; aviation fuel including aviation gasoline, napthatype jet fuel, kerosene-type jet fuel and kerosene-type rocket fuel, except for aviation fuel provided to a DPRK passenger aircraft for its return flight to the DPRK; crude oil and refined petroleum products; condensates and natural gas liquids; the base metals and articles of base metal referred to in HS codes 72 to 83; the machinery, mechanical appliances and electrical equipment referred to in HS codes 84 and 85. DPRK’s weapons programme It is prohibited for any person in Canada or any Canadian outside Canada to knowingly sell, supply or transfer, directly or indirectly, any of the following products, wherever situated, that are destined for the DPRK or for any person in the DPRK: those that are listed in Information Circular INFCIRC/ 254/Rev.12/Part 1, entitled Communication Received from the Permanent Mission of the Czech Republic to the International Atomic Energy Agency regarding Certain Member States’ Guidelines for the Export of Nuclear Material, Equipment and Technology; those that are listed in Information Circular INFCIRC/ 254/Rev.9/Part 2, entitled Communication Received from the Permanent Mission of the Czech Republic to the International Atomic Energy Agency regarding Certain Member States’ Guidelines for Transfers of Nuclear-related Dual-use Equipment, Materials, Software and Related Technology; those that appear on the lists set out in the Security Council documents S/2014/253, S/2016/308, S/2016/1069, S/2017/728, S/2017/760, S/ 2017/822 and S/2017/829; those that have been identified under paragraph 8 of Security Council Resolution 1718 by the Committee of the Security Council or by the Security Council; those that appear in Annex III of Security Council Resolution 2321. Support of military activities It is prohibited for any person in Canada or any Canadian outside Canada to knowingly provide to the DPRK, to any person in the DPRK, or to any person acting on behalf of the DPRK, any products other than food or medicine that could be used to support military activities. Technical assistance It is prohibited for any person in Canada or any Canadian outside Canada to knowingly provide to the DPRK, to any person in the DPRK, or to any person acting on behalf of the DPRK, technical assistance related to the sale, supply, transfer, manufacture, use or maintenance of any of the products referred to in paragraph (1)(a) or subsection (2). Training to nationals It is prohibited for any person in Canada or any Canadian outside Canada to knowingly provide to any national teaching or training in disciplines which could contribute to the proliferation of nuclear activities or the development of nuclear weapon delivery systems in the DPRK, including in advanced studies of physics, materials science, computer simulation and related computer sciences and geospatial navigation, and in nuclear, chemical, mechanical, electrical, industrial, aerospace and aeronautical engineering and related disciplines. Exception — exportation Subsections 8(1) to (3) do not apply to an activity if the Committee of the Security Council has approved the activity in advance. Exception — technical assistance and training Subsections 8(4) and (5) do not apply to an activity if the Committee of the Security Council has approved the activity in advance. Embargo — prohibited acquisitions It is prohibited for any person in Canada or any Canadian outside Canada to knowingly import, purchase or acquire any vessel or any of the products referred to in paragraph 8(1)(a) or subsections 8(2) and (3), wherever situated, from the DPRK or from any person in the DPRK. Coal, minerals and wood It is prohibited for any person in Canada or any Canadian outside Canada to knowingly import, purchase or acquire any of the following products, wherever situated, from the DPRK or from any person in the DPRK: any salt, sulphur, earths and stone, plastering materials, lime, cement and other materials referred to in HS code 25; coal, iron, iron ore, gold, titanium ore, vanadium ore, rare earth minerals, copper, nickel, silver, zinc, lead and lead ore; any wood, articles of wood and wood charcoal referred to in HS code 44. Statues It is prohibited for any person in Canada or any Canadian outside Canada to knowingly import, purchase or acquire statues, wherever situated, from the DPRK or from any person in the DPRK. Seafood It is prohibited for any person in Canada or any Canadian outside Canada to knowingly import, purchase or acquire seafood, including fish, crustaceans, mollusks and other aquatic invertebrates, wherever situated, or to acquire fishing rights related to such products by transfer or other means, from the DPRK or from any person in the DPRK. Food and agricultural products It is prohibited for any person in Canada or any Canadian outside Canada to knowingly import, purchase or acquire the products referred to in HS code 7, HS code 8 and HS code 12, wherever situated, from the DPRK or from any person in the DPRK. Textiles It is prohibited for any person in Canada or any Canadian outside Canada to knowingly import, purchase or acquire textiles, including fabrics and partially or fully assembled apparel products, wherever situated, from the DPRK or from any person in the DPRK. Machinery, appliances and electrical equipment It is prohibited for any person in Canada or any Canadian outside Canada to knowingly import, purchase or acquire the machinery, mechanical appliances and electrical equipment referred to in HS codes 84 and 85, wherever situated, from the DPRK or from any person in the DPRK. Technical assistance and training It is prohibited for any person in Canada or any Canadian outside Canada to knowingly receive any technical assistance or teaching or training related to the purchase, acquisition, manufacture, use or maintenance of any of the products referred to in paragraph 8(1)(a) or subsections 8(2) and (3) from the DPRK, from any person in the DPRK or from any national. Exception — importation Subsections 10(1) to (7) do not apply to an activity if the Committee of the Security Council has approved the activity in advance. Embargo — carriage It is prohibited for any owner or master of a Canadian vessel, as defined in section 2 of the Canada Shipping Act, 2001, or any operator of an aircraft registered in Canada or any Canadian owner or master of a vessel or Canadian operator of an aircraft to knowingly carry, cause to be carried or permit to be carried any of the products referred to in subsections 8(1) to (3) or any bulk cash that is destined for the DPRK or for any person in the DPRK. Carriage from DPRK — products referred to in subsections 10(1) to (7) It is also prohibited for any such owner, master or operator to knowingly carry, cause to be carried or permit to be carried, from the DPRK, any of the products referred to in any of subsections 10(1) to (7) or any bulk cash. Exception — export Subsection 12(1) does not apply if the Committee of the Security Council has been given notice in advance of the transport of a product that has been the subject of an advance approval referred to in subsection 9(1). Exception — import Subsection 12(2) does not apply if the Committee of the Security Council has been given notice in advance of the transport of a product that has been the subject of an advance approval referred to in section 11. Maintaining vessel It is prohibited for any person in Canada or any Canadian outside Canada to knowingly provide products or services for the operation or maintenance of any vessel, including with respect to stevedoring and lighterage, if the vessel has been identified by the competent authorities as one that is carrying any of the products referred to in subsections 8(1) to (3) and 10(1) to (7), unless it is necessary to do so for the safeguarding of human life or for the vessel to return to its port of origin. Crew services It is prohibited for any person in Canada or any Canadian outside Canada to knowingly provide a Canadian-flagged vessel or aircraft, or crew services for any vessel or aircraft, to the DPRK, to any person in the DPRK, to a designated person, to a person acting on behalf of or at the direction of a designated person or to an entity that is owned, held or controlled by a designated person. Crew services from DPRK It is prohibited for any person in Canada or any Canadian outside Canada to knowingly procure vessel or aircraft crew services from the DPRK or from any person in the DPRK. Vessels It is prohibited for any person in Canada or any Canadian outside Canada to register a vessel in the DPRK; obtain authorization for a vessel to fly the DPRK flag; own, lease or operate, directly or indirectly, any DPRK-flagged vessel; insure or reinsure any DPRK-flagged vessel or any vessel owned, held, controlled or operated, directly or indirectly, by the DPRK or any other vessel identified by the competent authorities as one that has transported any of the products referred to in any of subsections 8(1) to (3) and 10(1) to (7); or provide any vessel classification, certification or related service for any DPRK-flagged vessel. Exceptions — case by case Section 14 does not apply to an activity if the Committee of the Security Council has approved the activity in advance. Assisting in prohibited activity It is prohibited for any person in Canada or any Canadian outside Canada to knowingly do anything that causes, facilitates or assists in, or is intended to cause, facilitate or assist in, any activity prohibited by sections 2, subsection 3(1), sections 4 and 6, subsection 7(1), sections 8, 10, 12 and 14. Airports The authority that is responsible for an airport or its operator must refuse to allow an aircraft to land if the Minister advises the Authority that the Minister has information in his or her possession allowing him or her to conclude that the aircraft is in contravention of subsection 12(1) or (2) or that it is an aircraft of the DPRK. Ports The authority that is responsible for a port or its operator must refuse to allow a vessel to dock if the Minister advises the port or its operator that the Minister has information in his or her possession allowing him or her to conclude that the vessel is in contravention of subsection 12(1) or (2) or that it is a vessel of the DPRK. Exceptional circumstances Subsections (1) and (2) do not apply if it is necessary for the aircraft or vessel to land or dock for the safeguarding of human life, for inspection under a federal Act or for the aircraft or vessel to return to its point of origin. Registration of vessels The Chief Registrar who is responsible for maintaining the Canadian Register of Vessels under Part 2 of the Canada Shipping Act, 2001, must not register or must cancel the registration of a vessel if the vessel is designated by the Committee of the Security Council under Security Council Resolution 1718; the Chief Registrar has been notified that the vessel’s registration has been cancelled by a Member State of the United Nations under paragraph 24 of Security Council Resolution 2321; or the Chief Registrar has been notified of the Minister’s decision, based on reasonable grounds, that the vessel is owned, held or controlled by the DPRK, or used for activities prohibited by these Regulations. Approval by Committee of Security Council Paragraphs 1(a) and (b) do not apply if the Committee of the Security Council has given approval in advance for the registration. Duty to determine The following entities must determine on a continuing basis whether they are in possession or control of property owned, held or controlled by or on behalf of a designated person: authorized foreign banks, as defined in section 2 of the Bank Act, in respect of their business in Canada, and banks regulated by that Act; cooperative credit societies, savings and credit unions and caisses populaires regulated by a provincial Act and associations regulated by the Cooperative Credit Associations Act; foreign companies, as defined in subsection 2(1) of the Insurance Companies Act, in respect of their insurance activities in Canada; companies, provincial companies and societies, as those terms are defined in subsection 2(1) of the Insurance Companies Act; fraternal benefit societies regulated by a provincial Act in respect of their insurance activities and insurance companies and other entities regulated by a provincial Act that are engaged in the business of insuring risks; companies regulated by the Trust and Loan Companies Act; trust companies regulated by a provincial Act; loan companies regulated by a provincial Act; entities that engage in any activity referred to in paragraph 5(h) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act if the activity involves the opening of an account for a client; and entities authorized under provincial legislation to engage in the business of dealing in securities or to provide portfolio management or investment counselling services. Duty to disclose — RCMP or CSIS Every person in Canada, every Canadian outside Canada and every entity set out in section 19 must disclose without delay to the Commissioner of the Royal Canadian Mounted Police or to the Director of the Canadian Security Intelligence Service the existence of property in their possession or control that they have reason to believe is owned, held or controlled by or on behalf of a designated person; and any information about a transaction or proposed transaction in respect of property referred to in paragraph (a). Immunity No proceedings under the United Nations Act and no civil proceedings lie against a person for a disclosure made in good faith under subsection (1). Exemption A person that wishes to engage in any activity that is prohibited under these Regulations must, before doing so, apply to the Minister in writing for a certificate to exempt the activity from the application of the Regulations. Certificate The Minister must issue the certificate if the Security Council did not intend that the activity be prohibited or if the Security Council or the Committee of the Security Council has approved the activity in advance. Basic or extraordinary expenses A person whose property is affected by the application of section 2 may apply to the Minister in writing for a certificate to exempt the property from the application of that section if the property is necessary for basic or extraordinary expenses or is subject to a lien, mortgage or security interest, to a hypothec or prior claim, to a charge or to a judicial, administrative or arbitral decision. If it is established in accordance with Security Council Resolution 1718 that the property is necessary for basic or extraordinary expenses or that it is subject to a lien, mortgage or security interest, to a hypothec or prior claim, to a charge or to a judicial, administrative or arbitral decision, the Minister must issue a certificate within the following time periods: within 15 working days after receiving the application, in the case of property necessary for basic expenses, if the Committee of the Security Council did not oppose the application; within 30 working days after receiving the application, in the case of property necessary for extraordinary expenses, if the Committee of the Security Council approved the application; and within 90 working days after receiving the application, in the case of property that is subject to a lien, mortgage or security interest, to a hypothec or prior claim, to a charge or to a judicial, administrative or arbitral decision that was created or issued before the person became a designated person, is not for the benefit of a designated person, and has been brought to the attention of the Committee of the Security Council by the Minister. Mistaken identity A person whose name is the same as or similar to the name of a designated person and that claims not to be that designated person may apply to the Minister in writing for a certificate stating that they are not that designated person. Determination by Minister Within 45 working days after receiving the application, the Minister must issue the certificate, if it is established that the applicant is not the designated person; or provide notice to the applicant of his or her determination, if it is not so established. A person whose vessel is subject to a measure taken under subsection 18(1) based on a decision made under paragraph 18(1)(c) may apply in writing to the Minister for a reconsideration of that decision. Favourable decision If the Minister believes that subparagraph 18(1)(c)(i) or (ii) no longer applies to the vessel, the Minister must notify the applicant and the Chief Registrar of his or her decision and the Chief Registrar must rescind the measure taken. Unfavourable decision If the Minister believes that subparagraph 18(1)(c)(i) or (ii) continues to apply to the vessel, the Minister must notify the applicant of the decision to confirm the measure. New application If there has been a material change in circumstances since the last application was submitted under subsection (1), a person may submit another application to the Minister. Communication by Minister The Minister may, for the purpose of enforcing these Regulations or fulfilling any obligation under a resolution of the Security Council with respect to the DPRK or to respond to a request from the Security Council or any of its subsidiary organs, disclose any personal information to an official or to the Security Council or any of its subsidiary organs. Receipt of information An official may receive any personal information disclosed to them under subsection (1). Communication by official An official may, for the purpose of administering or enforcing these Regulations or fulfilling an obligation under a resolution of the Security Council with respect to the DPRK or to respond to a request from the Security Council or any of its subsidiary organs, disclose any personal information to the Minister. For the purpose of paragraph 11(2)(a) of the Statutory Instruments Act, these Regulations apply before they are published in the Canada Gazette.