{"id":53209,"date":"2022-10-07T08:35:32","date_gmt":"2022-10-07T15:35:32","guid":{"rendered":"https:\/\/lapost.us\/?p=53209"},"modified":"2022-10-07T08:35:32","modified_gmt":"2022-10-07T15:35:32","slug":"treasury-targets-north-korean-fuel-procurement-network","status":"publish","type":"post","link":"https:\/\/lapost.us\/?p=53209","title":{"rendered":"Treasury Targets North Korean Fuel Procurement Network"},"content":{"rendered":"

October 7, 2022,\u00a0WASHINGTON<\/strong> \u2013 Today, the U.S. Department of the Treasury\u2019s Office of Foreign Assets Control (OFAC) designated two individuals and three entities for activities related to the exportation of petroleum to the Democratic People\u2019s Republic of Korea (DPRK), which directly supports the development of DPRK weapons programs and its military. This action highlights the U.S. Government\u2019s commitment to implement existing United Nations Security Council resolutions (UNSCRs), including holding the DPRK accountable for its use of illicit ship-to-ship (STS) transfers to circumvent UN sanctions that restrict the import of petroleum products and supports the development of its weapons programs and military.<\/p>\n

\u201cThe DPRK\u2019s long-range ballistic missile launches, including over Japan, demonstrate a continued disregard for United Nations Security Council resolutions,\u201d said Brian Nelson, Under Secretary for Terrorism and Financial Intelligence. \u201cThe United States will continue to enforce multilateral sanctions and pursue the DPRK\u2019s sanctions evasion efforts worldwide, including by designating those who support these activities.\u201d<\/p>\n

INTERNATIONAL EVASION NETWORK<\/h3>\n

Today\u2019s actions target Singapore-based\u00a0Kwek Kee Seng<\/strong><\/b>, Taiwan-based\u00a0Chen Shih Huan<\/strong><\/b>, and Marshall Islands-registered company\u00a0New Eastern Shipping Co Ltd<\/strong><\/b>,\u00a0which were involved in the ownership or management of the\u00a0Courageous<\/em>, a vessel that has participated in several deliveries of refined petroleum to the DPRK. The\u00a0Courageous<\/em>, known as the Sea Prima during much of its illicit activity, conducted UN-prohibited STS transfers with the DPRK vessels and at least one direct delivery at Nampo, DPRK.<\/p>\n

 <\/p>\n

In September 2019, the Courageous, then named Sea Prima, conducted an STS transfer of refined petroleum with the DPRK vessel Saebyol, which then delivered the cargo to the DPRK.<\/sub><\/em><\/p>\n

 <\/p>\n

In November 2019, the Courageous, then named Sea Prima, delivered refined petroleum at Nampo, DPRK.<\/sub><\/em><\/p>\n

 <\/p>\n

The\u00a0Courageous\u00a0<\/em>engaged in deceptive shipping practices such as disabling its Automatic Identification System or AIS, conducting STS transfers at night and in the Korea Bay (an area determined to be high-risk for sanctions evasion), and undertaking unnecessary detours to further obfuscate its true destination or origin. These activities are consistent with deceptive shipping practices identified in the May 2020\u00a0Sanctions Advisory for the Maritime Industry, Energy and Metals Sectors, and Related Communities<\/a>, issued jointly by OFAC, the U.S. Department of State, and the U.S. Coast Guard.<\/p>\n

Kwek Kee Seng closely coordinated STS transfers from the\u00a0Courageous\u00a0<\/em>to the DPRK vessels and supervised the vessel during a delivery to the DPRK. Chen Shih Huan, a business associate of Kwek Kee Seng, also assisted in the coordination of these deliveries, including payment of the\u00a0Courageous\u00a0<\/em>crew\u2019s salaries.<\/p>\n

As a result, Kwek Kee Seng and Chen Shih Huan are being designated pursuant to E.O. 13810 for having engaged in at least one significant importation from or exportation to the DPRK of any goods, services, or technology.<\/p>\n

New Eastern Shipping Co Ltd was the registered owner of the\u00a0Courageous\u00a0<\/em>during the timeframe of the vessel\u2019s illicit activity. New Eastern Shipping Co Ltd is being designated pursuant to E.O.\u00a013810 for having engaged in at least one significant importation from or exportation to the DPRK of any goods, services, or technology.<\/p>\n

Additionally, OFAC designated Singapore-registered\u00a0Anfasar Trading (S) Pte. Ltd.<\/strong><\/b>\u00a0and Singapore\u00ad registered\u00a0Swanseas Port Services Pte. Ltd.<\/strong><\/b>\u00a0for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Kwek Kee Seng, a person whose property and interests in property are blocked pursuant to E.O. 13810.<\/p>\n

Today\u2019s actions build upon other U.S. government actions against Kwek Kee Seng and the\u00a0Courageous<\/em>. In April 2021, the U.S. Department of Justice and the Federal Bureau of Investigation (FBI) announced the filing of a\u00a0criminal complaint<\/a>\u00a0charging Kwek Kee Seng with conspiring to evade economic sanctions on the DPRK and conspiring to launder money. In addition to the criminal charges against Kwek Kee Seng, a\u00a0civil forfeiture complaint<\/a>\u00a0was filed against the\u00a0Courageous<\/em>. In July 2021,\u00a0a judgment<\/a>\u00a0was issued that forfeited the\u00a0Courageous\u00a0<\/em>to the United States. Kwek Kee Seng is currently\u00a0wanted by the FBI<\/a>. If you have any information concerning Kwek Kee Seng, please contact your local FBI office or the nearest American Embassy or Consulate.<\/p>\n

SANCTIONS IMPLICATIONS<\/h3>\n

As a result of today\u2019s 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\u2019s 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.<\/p>\n

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.<\/p>\n

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\u2019s\u00a0Frequently Asked Question 897<\/a>. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please refer to OFAC\u2019s\u00a0website<\/a>.<\/p>\n

More information on the individuals and entities designated today.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

October 7, 2022,\u00a0WASHINGTON \u2013 Today, the...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-53209","post","type-post","status-publish","format-standard","hentry","category-world"],"_links":{"self":[{"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts\/53209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=53209"}],"version-history":[{"count":1,"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts\/53209\/revisions"}],"predecessor-version":[{"id":53210,"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts\/53209\/revisions\/53210"}],"wp:attachment":[{"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=53209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=53209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=53209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}