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OFAC’s long weekend present: new North Korea, non-proliferation designations, narcotics removals, and a new version of Venezuela GL 8

OFAC has added the following person:

JONG, Yong Nam, Minsk, Belarus; DOB 26 Jan 1966; nationality Korea, North; Gender Male; 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; Passport PS 927120050 (Korea, North) (individual) [NPWMD].  

and entities:

AIR KORYO TRADING CORPORATION, Dandong, China; 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]. 

PUBLIC JOINT-STOCK COMPANY COMMERCIAL BANK 'SPUTNIK' (a.k.a. BANK SPUTNIK; a.k.a. BANK SPUTNIK CJSC; a.k.a. CB SPUTNIK; a.k.a. CB SPUTNIK PJSC; a.k.a. COMMERCIAL BANK SPUTNIK PUBLIC JOINT-STOCK COMPANY; f.k.a. OPEN JOINT-STOCK COMPANY COMMERCIAL BANK 'SPUTNIK'), Agibalov St. 48, Office 70, Samara, Samarskaya, Oblast 443041, Russia; SWIFT/BIC CSPJRU33; 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; Registration Number 1071 (Russia) [NPWMD].

under its non-proliferation sanctions program, and the following entity:

FAR EASTERN BANK (Cyrillic: ДАЛЬНЕВОСТОЧНЫЙ БАНК) (a.k.a. JOINT STOCK COMPANY FAR EASTERN BANK), 27-a, Verkhneportovaya St., Vladivostok, Primorskiy Kray 690990, Russia; SWIFT/BIC FAEBRU8V; BIK (RU) 040507705; 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; Tax ID No. 2540016961 (Russia); Legal Entity Number 253400YGH90JM0RMLU50 (Russia); Registration Number 1022500000786 (Russia) [DPRK3]. 

under the North Korea program. Additionally, the following designations were removed from the counter narcotics program:

AGRO Y COMERCIO DE SANTA BARBARA LAGROMER S. EN C., Cl 57 No. 24-72 Of 102 P 2, Bogota, Colombia; NIT # 800016670-7 (Colombia) [SDNTK]. 

AGRICOLA Y GANADERA CUEMIR, S.P.R. DE R.I. (a.k.a. RANCHO LA HERRADURA CUEMIR), Av. Prolongacion Vallarta No. 600, Zona Centro, Tlajomulco de Zuniga, Jalisco C.P. 45640, Mexico; Folio Mercantil No. 17919-1 (Mexico) [SDNTK].

RANCHO LA HERRADURA CUEMIR (a.k.a. AGRICOLA Y GANADERA CUEMIR, S.P.R. DE R.I.), Av. Prolongacion Vallarta No. 600, Zona Centro, Tlajomulco de Zuniga, Jalisco C.P. 45640, Mexico; Folio Mercantil No. 17919-1 (Mexico) [SDNTK].

CASA COMERCIAL UNI QUINCE COMPRAVENTA, Av. 15 No. 124-09 LC 102, Bogota, Colombia; Matricula Mercantil No 00666561 (Colombia) [SDNTK].

COMPANIA AGRO COMERCIAL CUETA S. EN C., Cl 57 No. 24-72 Local 102, Bogota, Colombia; NIT # 800007394-0 (Colombia) [SDNTK].

COOPERATIVA AVESTRUZ CUEMIR, S.C. DE R.L. DE C.V., Av. Prolongacion Vallarta No. 600 A, Zona Centro, Tlajomulco de Zuniga, Jalisco C.P. 45640, Mexico; Folio Mercantil No. 42877-1 (Mexico) [SDNTK].

INVERSIONES HUNEL LTDA., Cl 57 No. 24-72, Bogota, Colombia; NIT # 800223039-6 (Colombia) [SDNTK].

CUELLAR HURTADO, Hugo, Av. Artesanos 1498, Colonia Oblatos, Zapopan, Jalisco, Mexico; Calle Paseo de la Pradera 23, Fraccionamiento Royal Country, Zapopan, Jalisco, Mexico; Kr 76 173 45 In 4, Bogota, Colombia; Trv 176 N 56 25, Bogota, Colombia; DOB 18 May 1947; POB Florencia, Caqueta, Colombia; Cedula No. 17622278 (Colombia); C.U.R.P. CUHH470518HNELRG00 (Mexico) (individual) [SDNTK] (Linked To: AGRICOLA Y GANADERA CUEMIR, S.P.R. DE R.I.; Linked To: AGRO Y COMERCIO DE SANTA BARBARA LAGROMER S. EN C.; Linked To: COMPANIA AGRO COMERCIAL CUETA S. EN C.; Linked To: COOPERATIVA AVESTRUZ CUEMIR, S.C. DE R.L. DE C.V.; Linked To: INVERSIONES HUNEL LTDA.; Linked To: CASA COMERCIAL UNI QUINCE COMPRAVENTA).

CUELLAR SILVA, Jenny Johanna, Avenida Mexico 3335, Vallarta San Jorge, Guadalajara, Jalisco 44690, Mexico; Clle 57 N 24 72, Bogota, Colombia; Cometa # 2910, Col. Jardines del Bosque, Guadalajara, Jalisco 44520, Mexico; Prados de los Lirios # 4142, Casa 6, Col. Prados Tepeyac, Zapopan, Jalisco 45050, Mexico; DOB 11 Jul 1980; POB Florencia, Caqueta, Colombia; Cedula No. 52708729 (Colombia) (individual) [SDNTK] (Linked To: AGRO Y COMERCIO DE SANTA BARBARA LAGROMER S. EN C.; Linked To: COMPANIA AGRO COMERCIAL CUETA S. EN C.; Linked To: INVERSIONES HUNEL LTDA.; Linked To: PRENDA TODO, S.A. DE C.V.).

CUELLAR SILVA, Victor Hugo; DOB 18 Oct 1985; POB Bogota, Colombia; Cedula No. 1032359750 (Colombia) (individual) [SDNTK] (Linked To: AGRO Y COMERCIO DE SANTA BARBARA LAGROMER S. EN C.; Linked To: COMPANIA AGRO COMERCIAL CUETA S. EN C.; Linked To: INVERSIONES HUNEL LTDA.; Linked To: HOTEL PARAISO RESORT EN ARRENDAMIENTO; Linked To: PRENDA TODO, S.A. DE C.V.).

MIRAMONTES GUTIERREZ, Ofelia Margarita, Calle Paseo del Ocelote 161, Fraccionamiento Bugambilias, Zapopan, Jalisco, Mexico; DOB 24 Apr 1968; POB Guadalajara, Jalisco, Mexico; C.U.R.P. MIGO680424MJCRTF03 (Mexico) (individual) [SDNTK] (Linked To: AGRICOLA Y GANADERA CUEMIR, S.P.R. DE R.I.; Linked To: COOPERATIVA AVESTRUZ CUEMIR, S.C. DE R.L. DE C.V.).

VARGAS NUNEZ, Lucy Amparo (a.k.a. VARGAS DE CUADROS, Lucy Amparo), Kra 3 N 2B-22, Barrio Los Amigos, El Colegio, Cundinamarca, Colombia; DOB 26 Mar 1958; POB San Pedro, Valle, Colombia; Cedula No. 38858512 (Colombia) (individual) [SDNTK] (Linked To: AGRO Y COMERCIO DE SANTA BARBARA LAGROMER S. EN C.; Linked To: COMPANIA AGRO COMERCIAL CUETA S. EN C.; Linked To: INVERSIONES HUNEL LTDA.).

VARGAS DE CUADROS, Lucy Amparo (a.k.a. VARGAS NUNEZ, Lucy Amparo), Kra 3 N 2B-22, Barrio Los Amigos, El Colegio, Cundinamarca, Colombia; DOB 26 Mar 1958; POB San Pedro, Valle, Colombia; Cedula No. 38858512 (Colombia) (individual) [SDNTK] (Linked To: AGRO Y COMERCIO DE SANTA BARBARA LAGROMER S. EN C.; Linked To: COMPANIA AGRO COMERCIAL CUETA S. EN C.; Linked To: INVERSIONES HUNEL LTDA.).

PRENDA TODO, S.A. DE C.V. (a.k.a. CASA DE EMPENO PRENDA TODO), Andador Medrano 2845, Guadalajara Centro, Guadalajara, Jalisco 44100, Mexico; Medrano # 2845, Col. San Andres, Guadalajara, Jalisco C.P. 44410, Mexico; Zacarias Rubio No. 1609, San Miguel de Huentitan El Alto, Guadalajara, Jalisco 44780, Mexico; R.F.C. PTO000504DM5 (Mexico); Folio Mercantil No. 4495-1 (Mexico) [SDNTK].

CASA DE EMPENO PRENDA TODO (a.k.a. PRENDA TODO, S.A. DE C.V.), Andador Medrano 2845, Guadalajara Centro, Guadalajara, Jalisco 44100, Mexico; Medrano # 2845, Col. San Andres, Guadalajara, Jalisco C.P. 44410, Mexico; Zacarias Rubio No. 1609, San Miguel de Huentitan El Alto, Guadalajara, Jalisco 44780, Mexico; R.F.C. PTO000504DM5 (Mexico); Folio Mercantil No. 4495-1 (Mexico) [SDNTK].

HOTEL PARAISO RESORT EN ARRENDAMIENTO, Calle 3 No. 1-33/17, Rivera, Huila, Colombia; Matricula Mercantil No 0000104026 (Colombia) [SDNTK].

ALVAREZ MONTELONGO, Julio Cesar (a.k.a. ALVAREZ, Julion), Paseo de la Hacienda 443, Fracc. Los Mangos, Mazatlan, Sinaloa, Mexico; Ontario 1102, Col. Providencia, Guadalajara, Jalisco 44630, Mexico; Coras 3644, Col. Monraz, Guadalajara, Jalisco 44670, Mexico; Av. Manuel Acuna 3497, Col. Rinconada Santa Rita, Guadalajara, Jalisco 44690, Mexico; DOB 11 Apr 1983; POB La Concordia, Chiapas, Mexico; citizen Mexico; Website www.julionalvarez.net; Gender Male; R.F.C. AAMJ8304112F0 (Mexico); C.U.R.P. AAMJ830411HCSLNL05 (Mexico) (individual) [SDNTK] (Linked To: JCAM EDITORA MUSICAL, S.A. DE C.V.; Linked To: NORYBAN PRODUCTIONS, S.A. DE C.V.; Linked To: TICKET BOLETO, S.A. DE C.V.; Linked To: FLORES DRUG TRAFFICKING ORGANIZATION).

ALVAREZ, Julion (a.k.a. ALVAREZ MONTELONGO, Julio Cesar), Paseo de la Hacienda 443, Fracc. Los Mangos, Mazatlan, Sinaloa, Mexico; Ontario 1102, Col. Providencia, Guadalajara, Jalisco 44630, Mexico; Coras 3644, Col. Monraz, Guadalajara, Jalisco 44670, Mexico; Av. Manuel Acuna 3497, Col. Rinconada Santa Rita, Guadalajara, Jalisco 44690, Mexico; DOB 11 Apr 1983; POB La Concordia, Chiapas, Mexico; citizen Mexico; Website www.julionalvarez.net; Gender Male; R.F.C. AAMJ8304112F0 (Mexico); C.U.R.P. AAMJ830411HCSLNL05 (Mexico) (individual) [SDNTK] (Linked To: JCAM EDITORA MUSICAL, S.A. DE C.V.; Linked To: NORYBAN PRODUCTIONS, S.A. DE C.V.; Linked To: TICKET BOLETO, S.A. DE C.V.; Linked To: FLORES DRUG TRAFFICKING ORGANIZATION).

JCAM EDITORA MUSICAL, S.A. DE C.V., Mazatlan, Sinaloa, Mexico; Av. Manuel Acuna 3497, Terrazas Monraz, Guadalajara, Jalisco 44670, Mexico; Folio Mercantil No. 19365 (Sinaloa) (Mexico) [SDNTK].

NORYBAN PRODUCTIONS, S.A. DE C.V., Mazatlan, Sinaloa, Mexico; Av. Gutierrez Najera 104 Altos, Centro, Mazatlan, Sinaloa 82000, Mexico; Coras 3644, Guadalajara, Jalisco 44670, Mexico; Calle Manuel Acuna 3497, Col. Santa Rita, Guadalajara, Jalisco 44690, Mexico; Ontario 1102, Col. Providencia, Guadalajara, Jalisco 44630, Mexico; R.F.C. NPR0903058I3 (Mexico); Folio Mercantil No. 18949 (Sinaloa) (Mexico) [SDNTK].

TICKET BOLETO, S.A. DE C.V., Guadalajara, Jalisco, Mexico; Folio Mercantil No. 88198 (Jalisco) (Mexico) [SDNTK].

Treasury issued a press release about the NPWMD and DPRK listings:

PRESS RELEASES

Treasury Sanctions Individual, Banks, and Trading Company for Supporting North Korea’s WMD and Ballistic Missile Programs

May 27, 2022

Actions taken in the spirit of the Otto Warmbier North Korea Nuclear Sanctions Act of 2019

WASHINGTON — The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today sanctioned one individual, two banks, and a trading company for their support to the Democratic People’s Republic of Korea’s (DPRK) development of weapons of mass destruction (WMD) and ballistic missile programs and to the U.S.-designated DPRK national airline.  On May 24, 2022, the DPRK launched three missiles:  one intercontinental ballistic missile (ICBM) and two shorter range ballistic missiles.  So far this year, the DPRK has launched 23 ballistic missiles, including six ICBMs — all in violation of multiple United Nations Security Council resolutions (UNSCRs).

“Today Treasury is targeting supporters of the DPRK’s WMD and ballistic missile programs, as well as foreign financial institutions that have knowingly provided significant financial services to the DPRK government,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson.  “The United States will continue to implement and enforce existing sanctions while urging the DPRK to return to a diplomatic path and abandon its pursuit of weapons of mass destruction and ballistic missiles.”

Today’s action targets an individual who has directly supported or helped generate revenue for DPRK organizations that are linked to the development of ballistic missiles, along with three entities that are contributing or have contributed to procurement and revenue generation for DPRK organizations.

The United States remains committed to seeking dialogue and diplomacy with the DPRK but will continue to address the threat posed by the DPRK’s unlawful WMD and ballistic missile programs to the United States and the international community.

DPRK WEAPONS OF MASS DESTRUCTION SUPPORT

On August 30, 2010, the U.S. Department of State designated both the Munitions Industry Department (MID) and the Second Academy of Natural Sciences (SANS) pursuant to Executive Order (E.O.) 13382 (“Blocking Property of Weapons of Mass Destruction Proliferators and Their Supporters”) for their involvement with or provision of support for the DPRK’s WMD and missile programs.  Additionally, on April 1, 2022, OFAC designated the Ministry of Rocket Industry (MoRI) pursuant to E.O. 13382 for being owned or controlled by MID.  Today’s action will further restrict the ability of both MID and SANS to utilize their subsidiaries and foreign-based agents to procure both financial and material support from DPRK representatives in foreign countries and from companies that provide services to circumvent sanctions.

OFAC is designating one individual and one entity engaged in various procurement activities on behalf of the DPRK.  Jong Yong Nam is designated pursuant to E.O. 13382 for acting or purporting to act for or on behalf of, directly or indirectly, SANS.  Since 2019, Jong Yong Nam has been located in Minsk, Belarus, as a representative for a SANS-subordinate organization. The Air Koryo Trading Corporation (AKTC) is designated pursuant to E.O. 13382 for providing, or attempting to provide, financial, material, technological or other support for, or goods or services in support of, MoRI.  MoRI has sought to acquire various electrical components and dual-use goods, including transistors and hydraulic system components, through AKTC.  AKTC has also been used to coordinate MoRI shipments to North Korea.  A Dandong, China-based AKTC official coordinated shipments on behalf of MoRI, while O Yong Ho — previously designated by the Department of State pursuant to E.O. 13382 for having engaged in activities or transactions that have materially contributed to the proliferation of WMDs or their means of delivery by the DPRK — used AKTC to coordinate the shipment of luxury goods to the DPRK.

FINANCIAL INSTITUTIONS

OFAC is also designating two Russian financial institutions for conducting transactions on behalf of DPRK entities.

The Far Eastern Bank is designated pursuant to E.O. 13722 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of U.S.-designated Air Koryo, the national airline of the DPRK.  Far Eastern Bank has provided banking services on behalf of Air Koryo and other DPRK government organizations.

Bank Sputnik is designated pursuant to E.O. 13382 for having provided, having attempted to provide, financial, material, technological, or other support for, or goods or services in support of, the DPRK Foreign Trade Bank (FTB), a U.S.- and UN-designated entity.  In addition to assisting the FTB with the facilitation of a payment for the use of Russian satellite services, Bank Sputnik holds a Russian ruble account for a U.S.-designated FTB front company, Korea Ungum Corporation.  This account was used to conduct transactions between two DPRK-affiliated, Moscow-based businesses.

OFAC is taking these actions in the spirit of the Otto Warmbier North Korea Nuclear Sanctions Act of 2019, which imposes mandatory designations on foreign financial institutions that knowingly provide significant financial services to persons designated under DPRK-related authorities.

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.

Finally, Venezuela General License 8 is now on version J – it still authorizes transactions for Chevron, Halliburton, Schlumberger, Banker Hughes, and Weatherford. But the wording is very restrictive as to what is permitted:

all transactions and activities … that are ordinarily incident and necessary to the limited maintenance of essential operations, contracts, or other agreements, that: (i) are for safety or the preservation of assets in Venezuela; (ii) involve PdVSA or any entity in which PdVSA owns, directly or indirectly, a 50 percent or greater interest; and (iii) were in effect prior to July 26, 2019, are authorized

And:

Note to paragraph (a): Transactions and activities necessary for safety or the preservation of assets in Venezuela that are authorized by paragraph (a) of this general license include: transactions and activities necessary to ensure the safety of personnel, or the integrity of operations and assets in Venezuela; participation in shareholder and board of directors meetings; making payments on third-party invoices for transactions and activities authorized by paragraph (a) of this general license, or incurred prior to April 21, 2020, provided such activity was authorized at the time it occurred; payment of local taxes and purchase of utility services in Venezuela; and payment of salaries for employees and contractors in Venezuela.

And:

(c) Paragraph (a) of this general license does not authorize:
(1) The drilling, lifting, or processing of, purchase or sale of, or transport or shipping of any Venezuelan-origin petroleum or petroleum products;
(2) The provision or receipt of insurance or reinsurance with respect to the transactions and activities described in paragraph (c)(1) of this general license;
(3) The design, construction, installation, repair, or improvement of any wells or other facilities or infrastructure in Venezuela or the purchasing or provision of any goods or services, except as required for safety;
(4) Contracting for additional personnel or services, except as required for safety; or
(5) The payment of any dividend, including in kind, to PdVSA, or any entity in which PdVSA owns, directly or indirectly, a 50 percent or greater interest.

Now, these aren’t new conditions – the only real change is the new expiration date of December 1 – but it’s good to note the very restrictive nature of GL8.

Links:

OFAC Notice

Venezuela General License 8J

Press Release – Treasury

Categories: Licenses Narcotics Trafficking North Korea (DPRK) Sanctions OFAC Updates Sanctions Lists Venezuela sanctions Weapons of Mass Destruction Proliferation Sanctions

eric9to5

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