Singapore legislation

Regulation 5

of Financial Services and Markets (Sanctions and Freezing of Assets of Persons — Democratic People’s Republic of Korea) Regulations 2023

Regulation 5

Prohibition against providing financial services or transferring assets or resources for nuclear‑related programmes and activities, etc.

Subregulation 1

A financial institution must not, directly or indirectly (including through any provider of any brokering or other intermediary services) —

(a)

provide any financial services (including but not limited to the granting of export credits, guarantees, insurance, re‑insurance, or the clearing or settlement of any transactions) or any other related services;

(b)

transfer (including through a gold courier transiting to and from the Democratic People’s Republic of Korea) any financial assets or resources (including bulk cash or gold); or

(c)

transfer other assets or resources,that may contribute to any prohibited activity of the Democratic People’s Republic of Korea.

Subregulation 2

For the purposes of paragraph (1), “prohibited activity” includes providing technical training, advice, services, or assistance relating to the provision, manufacture, maintenance or use of items, materials, equipment, goods or technology that is —

(a)

nuclear‑related;

(b)

ballistic missile‑related; or

(c)

other weapons of mass destruction‑related.

Subregulation 3

A financial institution must —

(a)

apply enhanced monitoring to prevent financial transactions; and

(b)

immediately freeze any financial assets or resources, or other assets or resources, in its possession, custody or control in Singapore,that are associated with, or may contribute to, any prohibited activity of the Democratic People’s Republic of Korea.

Subregulation 4

In proceedings for an offence of contravening paragraph (1) or (3) —

(a)

it is not necessary for the prosecution to prove that the financial institution knew or had reason to believe that the financial services or other related services, financial assets or resources, other assets or resources, or financial transactions (as the case may be) are associated with, or may contribute to, any prohibited activity of the Democratic People’s Republic of Korea; and

(b)

it is a defence for the financial institution to prove, on a balance of probabilities, that the financial institution did not know, and could not by the exercise of due diligence have known, that the financial services or other related services, financial assets or resources, other assets or resources, or financial transactions (as the case may be) are associated with, or may contribute to, any prohibited activity of the Democratic People’s Republic of Korea.

Read in full context — Financial Services and Markets (Sanctions and Freezing of Assets of Persons — Democratic People’s Republic of Korea) Regulations 2023 →