ExecutiveOrdersEO
EO 13551Executive OrderObama · D

Executive Order 13551

Blocking Property of Certain Persons With Respect to North Korea

This executive order expands existing sanctions against North Korea by blocking U.S.-based assets and prohibiting transactions with individuals and entities involved in arms trade, luxury goods imports, money laundering, counterfeiting, narcotics trafficking, and other activities supporting the North Korean government. It builds upon prior sanctions in Executive Order 13466 and implements obligations from UN Security Council Resolutions 1718 and 1874.

Federal Register Open PDF 75 FR 53837

Impact dates

  1. EO effective and asset blocking takes effect at 12:01 p.m. EDT

Key directives

  • Block all property and interests in property of designated persons in the U.S. or under U.S. person control
  • Prohibit import/export/reexport of arms or related materiel to/from North Korea by designated persons
  • Prohibit provision of training, advice, services, or financial transactions related to North Korean arms
  • Prohibit import/export/reexport of luxury goods to North Korea
  • Prohibit money laundering, counterfeiting, bulk cash smuggling, and narcotics trafficking supporting North Korea
  • Prohibit material assistance to persons engaged in above activities
  • Prohibit donations that would impair ability to deal with national emergency
  • Authorize Treasury Secretary to designate additional sanctioned persons in consultation with State Secretary
  • Authorize Treasury Secretary to issue implementing regulations
  • Authorize Treasury Secretary to delist persons when circumstances no longer warrant blocking

Who is ordered

Timeline

Immediate

  • Asset blocking takes effect at 12:01 p.m. EDT on August 30, 2010 for listed persons
  • Prohibitions on transactions, donations, and dealings apply immediately
  • No prior notice required for listing determinations

Near term (90d)

  • Treasury Secretary to promulgate implementing rules and regulations
  • Potential expansion of sanctions to newly designated persons under criteria in Section 1(a)(ii)

Long term

  • Ongoing enforcement of sanctions regime against North Korea
  • Potential delisting determinations by Treasury Secretary when circumstances warrant
  • Continued coordination with UN sanctions framework

Risks & tensions

  • No prior notice requirement (Section 5) raises due process concerns for designated persons with constitutional presence in U.S.
  • Broad delegation to Treasury Secretary for designation criteria creates significant discretionary authority with limited procedural constraints
  • Definition of 'luxury goods' references external Commerce Control List (15 C.F.R. 746.4), creating regulatory dependency
  • Vague standard for delisting ('circumstances no longer warrant') provides no clear benchmarks for removal from sanctions
  • Extraterritorial reach via 'any overseas branch' of U.S. entities may create compliance tensions with foreign jurisdictions
Executive Order 13551: Blocking Property of Certain Persons With Respect to North Korea · Executive Orders