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More DPRK-linked NPWMD designations from OFAC…

OFAC has added the following entities:

HAPJANGGANG TRADING CORPORATION (Korean: 합장강무역회사), Korea, North; Secondary sanctions risk: North Korea Sanctions Regulations, sections 510.201 and 510.210; Transactions Prohibited For Persons Owned or Controlled By U.S. Financial Institutions: North Korea Sanctions Regulations section 510.214; Target Type State-Owned Enterprise [NPWMD] (Linked To: MINISTRY OF ROCKET INDUSTRY). 

KOREA ROUNSAN TRADING CORPORATION, Korea, North; Secondary sanctions risk: North Korea Sanctions Regulations, sections 510.201 and 510.210; Transactions Prohibited For Persons Owned or Controlled By U.S. Financial Institutions: North Korea Sanctions Regulations section 510.214; Target Type State-Owned Enterprise [NPWMD] (Linked To: MINISTRY OF ROCKET INDUSTRY).

MINISTRY OF ROCKET INDUSTRY (Korean: 로케트공업부) (a.k.a. ROCKET INDUSTRY DEPARTMENT), Pyongchon, Korea, North; Secondary sanctions risk: North Korea Sanctions Regulations, sections 510.201 and 510.210; Transactions Prohibited For Persons Owned or Controlled By U.S. Financial Institutions: North Korea Sanctions Regulations section 510.214; Target Type Government Entity [NPWMD] (Linked To: MUNITIONS INDUSTRY DEPARTMENT).

SUNGNISAN TRADING CORPORATION (Korean: 조선승리산무역회사) (a.k.a. KOREA SUNGRISAN TRADING CORPORATION), Chungsong 2-dong, Nangnang District, Pyongyang, Korea, North; Secondary sanctions risk: North Korea Sanctions Regulations, sections 510.201 and 510.210; Transactions Prohibited For Persons Owned or Controlled By U.S. Financial Institutions: North Korea Sanctions Regulations section 510.214; Target Type State-Owned Enterprise [NPWMD] (Linked To: MINISTRY OF ROCKET INDUSTRY).

UNCHON TRADING CORPORATION (Korean: 운천무역회사) (a.k.a. UNCHEN TRADING CORP.; a.k.a. UNCHON TRADING CORP.), Korea, North; Secondary sanctions risk: North Korea Sanctions Regulations, sections 510.201 and 510.210; Transactions Prohibited For Persons Owned or Controlled By U.S. Financial Institutions: North Korea Sanctions Regulations section 510.214; Target Type State-Owned Enterprise [NPWMD] (Linked To: MINISTRY OF ROCKET INDUSTRY).

to its non-proliferation sanctions program. And Treasury issued the following press release:

PRESS RELEASES

Treasury Targets Democratic People’s Republic of Korea (DPRK) Weapons of Mass Destruction Organization and Subsidiaries

April 1, 2022

WASHINGTON — The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today sanctioned five entities for providing support to the DPRK’s development of weapons of mass destruction (WMD) and ballistic missile programs, in violation of multiple United Nations Security Council resolutions (UNSCRs).

The DPRK conducted two ballistic missile tests on February 26 and March 4, 2022.

The United States Government analyzed the launches and concluded that they involved a new intercontinental ballistic missile (ICBM) system that the DPRK is developing, which was originally unveiled during the Korean Workers Party parade on October 10, 2020. The purpose of these tests is likely to evaluate this system before the DPRK conducts a test at full range in the future, potentially disguised as a space launch. On March 24, 2022, the DPRK conducted a test of an ICBM.

Today’s action targets a DPRK WMD research and development organization that is directly linked to the development of new ICBMs, along with four of its revenue-generating subsidiaries.

“The DPRK’s provocative ballistic missile tests represent a clear threat to regional and global security and are in blatant violation of UN Security Council resolutions,” said Secretary of the Treasury Janet L. Yellen. “The United States is committed to using our sanctions authorities to respond to the DPRK’s continued development of weapons of mass destruction and ballistic missiles. I also commend Japan for their actions today against the DPRK, and stand ready to continue to work together to counter the DPRK’s continued threatening behavior.”

DPRK BALLISTIC MISSILE DEVELOPMENT

On August 30, 2010, the U.S. Department of State designated the Munitions Industry Department (MID) pursuant to Executive Order (E.O.) 13382 (“Blocking Property of Weapons of Mass Destruction Proliferators and Their Supporters”) for its involvement with or provision of support for the DPRK’s weapons of mass destruction programs, including the development of ballistic missiles. Today’s action further restricts the ability of MID to procure both financial and material support from DPRK workers overseas and the use of front companies, shell companies, joint ventures and other opaque ownership structures that circumvent UNSCRs and U.S. sanctions.

As part of today’s action, OFAC designated the DPRK Ministry of Rocket Industry(MoRI) pursuant to E.O. 13382 for being owned or controlled by, or acting or purporting to act for or on behalf of, directly or indirectly, the MID. MoRI has worked with overseas representatives from other DPRK organizations in order to support MoRI procurement goals.

Additionally, OFAC is designating four MoRI trading companies – Hapjanggang Trading Corporation, Korea Rounsan Trading Corporation, Sungnisan Trading Corporation, and Unchon Trading Corporation – pursuant to E.O. 13382 for being owned or controlled by, or acting or purporting to act for or on behalf of, directly or indirectly, MoRI. These trading companies have pursued various activities likely aimed at generating revenue for MoRI. Such activities include: establishing joint ventures in North Korea; pursuing large-scale projects with Chinese firms; exporting North Korean labor, including IT workers; establishing a restaurant in a foreign location; coordinating with DPRK embassy personnel on international trade efforts; and importing large equipment manufactured by a European company to North Korea.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the individuals and entities that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. OFAC’s regulations generally prohibit all dealings by U.S. persons or within the United States (including transactions transiting the United States) that involve any property or interests in property of blocked or designated persons.

In addition, persons that engage in certain transactions with the individuals or entities designated today may themselves be exposed to designation. Furthermore, any foreign financial institution that knowingly facilitates a significant transaction or provides significant financial services for any of the individuals or entities designated today could be subject to U.S. correspondent or payable-through account sanctions.

The power and integrity of OFAC sanctions derive not only from its ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897. For detailed information on the process to submit a request for removal from an OFAC sanctions list.

Links:

OFAC Notice

Press Releases – Treasury

Categories: North Korea (DPRK) Sanctions OFAC Updates Sanctions Lists Weapons of Mass Destruction Proliferation Sanctions

eric9to5

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