The Market Monitor Minding the Nation's Business
The Bangko Sentral ng Pilipinas (BSP) noted a rise in spurious bank transactions involving North Korea, as it called on banks and other BSP-supervised institutions (BSFIs) to be vigilant on financial transactions involving the East Asian nation, and individuals and entities connected to it.
BSP Deputy Governor Nestor Espenilla Jr., in Circular Letter CL-2017-035, called on all BSP-supervised entities to “closely monitor and exercise vigilance” on the financial transactions of 11 individuals and 10 companies mentioned under United Nations Security Council (UNSC) Resolution 2321 (2016), issued on Nov. 30, 2016.
These individuals, who have been issued travel bans and whose assets have been ordered frozen, are Pak Chun II, Kim Song Chol, Son Jong Hyok, Kim Se Gon, Ri Won Ho, Jo Yong Chol, Kim Chol Sam, Kim Sok Chol, Chang Chang Ha, Cho Chun Ryong, and Son Mun San.
The entities identified under the UNSC Resolution are Korea United Development Bank, Ilsim International Bank, Korea Daesong Bank, Singwang Economics and Trading General Corporation, Korea Foreign Technical Trade Center, Korea Pugang Trading Corporation, Korea International Chemical Joint Venture Company, DCB Finance Limited, Korea Taesong Trading Company, and Korea Daesong General Trading Corporation.
Espenilla, who heads the central bank’s Supervision and Examination Sector (SES) and the incoming BSP chief, said “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.”
”BSFIs are likewise advised to report, to the appropriate supervising department of the 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),” the circular letter added.
UNSC issued the said Resolution following DPRK’s continued nuclear tests, which is in violation of the Treaty on Non-Proliferation of Nuclear Weapons, as well as prohibited arms sales.
The resolution explained that “proliferation of nuclear, chemical and biological weapons, as well as their means of delivery, constitutes a threat to international peace and security.”