Council Regulation (EU) 2017/1509 of 30 August 2017 concerning restrictive measures against the Democratic People's Republic of Korea and repealing Regulation (EC) No 329/2007

This Regulation shall apply:

1. within the territory of the Union;

2. on board any aircraft or any vessel under the jurisdiction of a Member State;

3. to any person inside or outside the territory of the Union who is a national of a Member State;

4. to any legal person, entity or body, inside or outside the territory of the Union which is incorporated or constituted under the law of a Member State;

5. to any legal person, entity or body in respect of any business done in whole or in part within the Union.

For the purposes of this Regulation, the following definitions apply:

1. ‘branch’ of 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;

2. ‘brokering services’ means:

   1. the negotiation or arrangement of transactions for the purchase, sale or supply of goods and technology or of financial and technical services, including from a third country to any other third country; or

   2. the selling or buying of goods and technology or of financial and technical services, including where they are located in third countries for their transfer to another third country;

3. ‘claim’ means any claim, whether asserted by legal proceedings or not under or in connection with a contract or transaction, and includes in particular:

   1. a claim for performance of any obligation arising under or in connection with a contract or transaction;

   2. a claim for extension or payment of a bond, financial guarantee or indemnity of whatever form;

   3. a claim for compensation in respect of a contract or transaction;

   4. a counterclaim;

   5. a claim for the recognition or enforcement, including by the procedure of exequatur, of a judgment, an arbitration award or an equivalent decision, wherever made or given;

4. ‘competent authorities’ refers to the competent authorities as identified on the websites listed in Annex I;

5. ‘contract or transaction’ means any transaction of whatever form and whatever the applicable law, whether comprising one or more contracts or similar obligations made between the same or different parties; for this purpose ‘contract’ includes a bond, guarantee or indemnity, particularly a financial guarantee or financial indemnity, and credit, whether legally independent or not, as well as any related provision arising under, or in connection with, the transaction;

6. ‘credit institution’ means a credit institution as defined in point (1) of Article 4(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council⁽¹⁾, including branches thereof, as defined in point (17) of Article 4(1) of that Regulation, located in the Union, whether its head office is situated within the Union or in a third country;

7. ‘diplomatic missions, consular posts and their members’ has the same meaning as in the 1961 Vienna Convention on Diplomatic Relations and the 1963 Vienna Convention on Consular Relations, and also includes missions of the DPRK to international organisations hosted in the Member States and DPRK members of those missions;

8. ‘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;

9. ‘financial institution’ means

   1. an undertaking, other than a credit institution, which carries out one or more of the activities listed in points (2) to (12), (14) and (15) of Annex I to Directive 2013/36/EU of the European Parliament and of the Council⁽²⁾, including the activities of currency exchange offices (bureaux de change);

   2. an insurance undertaking as defined in point (1) of Article 13 of Directive 2009/138/EC of the European Parliament and of the Council⁽³⁾, insofar as it carries out life assurance activities covered by that Directive;

   3. an investment firm as defined in point (1) of Article 4(1) of Directive 2004/39/EC of the European Parliament and of the Council⁽⁴⁾;

   4. a collective investment undertaking marketing its units or shares;

   5. an insurance intermediary as defined in point (5) of Article 2 of Directive 2002/92/EC of the European Parliament and of the Council⁽⁵⁾ where it acts with respect to life insurance and other investment-related services, with the exception of a tied insurance intermediary as defined in point (7) of that Article;

   6. branches, when located in the Union, of financial institutions as referred to in points (a) to (e), whether their head office is situated in a Member State or in a third country;

10. ‘freezing of economic resources’ means preventing the use of economic resources to obtain funds, goods or services in any way, including, but not limited to, by selling, hiring or mortgaging them;

11. ‘freezing of funds’ means preventing any moving, transfer, alteration, use of, access to, or dealing with funds in any way that would result in any change in their volume, amount, location, ownership, possession, character, destination or other change that would enable the use of the funds, including portfolio management;

12. ‘funds’ means financial assets and benefits of every kind, including but not limited to:

    1. cash, cheques, claims on money, drafts, money orders and other payment instruments;

    2. deposits with financial institutions or other entities, balances on accounts, debts and debt obligations;

    3. publicly and privately-traded securities and debt instruments, including stocks and shares, certificates representing securities, bonds, notes, warrants, debentures and derivatives contracts;

    4. interest, dividends or other income on or value accruing from or generated by assets;

    5. credit, right of set-off, guarantees, performance bonds or other financial commitments;

    6. letters of credit, bills of lading, bills of sale;

    7. documents evidencing an interest in funds or financial resources;

13. ‘insurance’ means an undertaking or commitment whereby one or more natural or legal persons are obliged, in return for a payment, to provide one or more other persons, in the event of the materialisation of a risk, with an indemnity or a benefit as determined by the undertaking or commitment;

14. ‘investment services’ means the following services and activities:

    1. reception and transmission of orders in relation to one or more financial instruments;

    2. execution of orders on behalf of clients;

    3. dealing on own account;

    4. portfolio management;

    5. investment advice;

    6. underwriting of financial instruments and/or placing of financial instruments on a firm-commitment basis;

    7. placing of financial instruments without a firm-commitment basis;

    8. any service in relation to the admission to trading on a regulated market or trading on a multilateral trading facility;

15. ‘payee’ means a natural or legal person who is the intended recipient of the transfer of funds;

16. ‘payer’ means a person who holds a payment account and allows a transfer of funds from that payment account, or, where there is no payment account, that gives a transfer-of-funds order;

17. ‘payment service provider’ means the categories of payment service provider referred to in Article 1(1) of Directive 2007/64/EC of the European Parliament and of the Council⁽⁶⁾, natural or legal persons benefiting from a waiver pursuant to Article 26 of Directive 2007/64/EC and legal persons benefiting from a waiver pursuant to Article 9 of Directive 2009/110/EC of the European Parliament and of the Council⁽⁷⁾, providing transfer-of-funds services;

18. ‘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;

19. ‘services incidental to’ means services rendered on a fee or contract basis by units mainly engaged in the production of transportable goods, as well as services typically related to the production of such goods;

20. ‘shipowner’ means the registered owner of a seagoing ship, or any other person such as the bareboat charterer who is responsible for the operation of the ship;

21. ‘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;

22. ‘territory of the Union’ means the territories of the Member States to which the Treaty is applicable, under the conditions laid down in the Treaty, including their airspace;

23. ‘transfer of funds’ means:

    1. any transaction at least partially carried out by electronic means on behalf of a payer through a payment service provider, with a view to making funds available to a payee through a payment service provider, irrespective of whether the payer and the payee are the same person and irrespective of whether the payment service provider of the payer and that of the payee are one and the same, including:

       1. a credit transfer as defined in point (1) of Article 2 of Regulation (EU) No 260/2012 of the European Parliament and of the Council⁽⁸⁾;

       2. a direct debit as defined in point (2) of Article 2 of Regulation (EU) No 260/2012;

       3. a money remittance as defined in point (13) of Article 4 of Directive 2007/64/EC, whether national or cross border;

       4. a transfer carried out using a payment card, an electronic money instrument, or a mobile phone, or any other digital or IT prepaid or postpaid device with similar characteristics; and

    2. any transaction by non-electronic means, such as in cash, cheques or accountancy orders, with a view to making funds available to a payee irrespective of whether the payer and the payee are the same person.

24. ‘a vessel crewed by the DPRK’ means:

    1. a vessel whose manning is controlled by:

       1. a natural person of DPRK nationality; or

       2. a legal person, entity or body incorporated or constituted under the law of the DPRK;

    2. a vessel entirely manned by DPRK nationals.