Departments of Treasury, State, and Homeland Security issue joint advisory warning businesses of North Korean sanctions evasion tactics

Financial Crimes Department of Treasury Department of State Department of Homeland Security Sanctions CAATSA North Korea OFAC

On July 23, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), in conjunction with the Department of State and the Department of Homeland Security, issued an advisory to warn businesses—including manufacturers, buyers, and service providers—of the potential risks that may result from sanctions evasion tactics used by North Korea across supply chains. The advisory also provides assistance for businesses complying with Title III of the Countering America’s Adversaries Through Sanctions Act of 2017 with respect to North Korean sanctions. According to the advisory, the U.S. government “is focusing its disruption efforts on North Korean citizens or nationals whose labor generates revenue for the North Korean government.” Specifically, the advisory warns businesses to examine their entire supply chains and adopt appropriate, well-documented due diligence best practices, which “may be considered mitigating factors when the U.S. government determines the appropriate enforcement response.” The advisory also outlines penalties for violations of sanctions and enforcement actions.

See here for previous InfoBytes coverage on North Korea sanctions.