Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned a network of six individuals and five entities based in the People’s Republic of China (PRC), involved in the procurement of items supporting the Democratic People’s Republic of Korea’s (DPRK) ballistic missile and space programs.
In flagrant violation of multiple United Nations (UN) Security Council Resolutions (UNSCR), the DPRK has continued to conduct launches using ballistic missile technology, including a recent failed effort to place a military satellite into orbit in late May 2024. Moreover, the DPRK has supplied ballistic missiles to the Russian Federation, which continues to target civilian population centers and infrastructure in Ukraine, sustaining Russia’s brutal and unprovoked war.
For its part, Russia has vetoed the renewal of the UN Panel of Experts tasked with monitoring for violations of DPRK-related UNSCR sanctions, making it easier for the DPRK and other actors to evade UN sanctions. Today’s action reaffirms that the relevant UNSCRs remain in full force and reiterates the United States’ commitment to countering sanctions evasion and strengthening efforts for enforcement.
“The DPRK’s continued development and proliferation its of ballistic missile technologies—in violation of UN sanctions—is both irresponsible and destabilizing for both the region and the international community,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “The United States remains committed to using our tools to enforce these international sanctions, including disrupting the illicit procurement networks that provide key inputs for these technologies and holding accountable those who seek to enable these activities.”
The DPRK’s ballistic missile and space programs depend on foreign-sourced materials and components that it cannot produce domestically. To procure these materials and components, the DPRK operates an extensive network of procurement agents overseas, including officials who operate from DPRK diplomatic missions or trade offices, as well as third-country nationals. The DPRK also leverages foreign-incorporated companies to purchase items in support of its ballistic missile and weapons production. These companies consolidate and repackage items for onward shipment to the DPRK, concealing the true end-user from the manufacturers and distributors of the items.
SANS representative Choe Chol Min has collaborated with DPRK weapons trading officials, Chinese nationals, and other associates to procure various items, including materials known to be used in DPRK ballistic missile production. Choe Chol Min receives procurement requests from the DPRK and coordinates with associates to fulfill these orders.
As a result of today’s action, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. Additionally, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons.
Financial institutions and other persons that engage in transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. Prohibited activities include making contributions or providing funds, goods, or services to, from, or for the benefit of any designated person, or receiving such contributions or provisions from any such person.
Source: US Department Of The Treasury, July 24, 2024
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