BSP in lookout for NoKor transactions in PH

The Bangko Sentral ng Pilipinas (BSP) is urging all financial institutions in the country to report any transaction involving the North Korean government following a United Nations resolution last year slapping sanctions on Pyongyang due to its nuclear tests.

“The BSP, in coordination with the Department of Foreign Affairs, fully supports UN Security Council Resolution [UNSCR] No. 2321 (2016) and, within the bounds of banking laws, rules and regulations, advises BSP-supervised financial institutions to closely monitor and exercise vigilance on any financial transactions with the individuals and entities referred to in [the UN resolution], specifically Annexes I and II,” BSP Deputy Governor Nestor A. Espenilla Jr. said in Circular Letter No. CL-2017-035 issued on May 26.

The said UN resolution issued on Nov. 30, 2016 imposed sanctions on North Korea for a nuclear test two months prior, a violation of the UN Treaty on Non-Proliferation of Nuclear Weapons.

Annex I of the resolution froze the assets of and imposed a travel ban on 11 individuals, most of whom were said to be affiliated with state-owned Korea Mining Development Trading Corp., North Korea’s primary arms dealer.

Annex 2, meanwhile, froze the assets of 10 North Korean banks and state-run firms.

“Please note that the measures imposed under UNSCR 2321 (2016) also apply to any individuals and entities acting on their behalf or at their direction, and to entities owned or controlled by them including through illicit means,” Espenilla said.

All BSP-supervised financial institutions were “advised to report, to the appropriate supervising department of the [BSP’s] supervision and examination sector and to the Anti-Money Laundering Council, any known information, such as name, nature of transaction, amount involved, and date, regarding the cited individuals and entities, referred to in UNSCR No. 2321 (2016),” he said. —BEN O. DE VERA