OFAC sanctions North Koreans for development of WMDs
On April 1, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 13382 against five entities for supporting the Democratic People’s Republic of Korea’s (DPRK’s) development of weapons of mass destruction (WMD) and ballistic missile programs in violation of multiple United Nations Security Council resolutions. According to OFAC, the sanctions target a DPRK WMD research and development organization, which is connected to the development of the DPRK’s intercontinental ballistic missile launches, along with four of its revenue generating subsidiaries. As a result of the sanctions, all property and interests in property of the sanctioned entities are blocked and must be reported to OFAC. OFAC noted that its regulations generally prohibit U.S. persons from participating in transactions with the designated entities, including transactions transiting the U.S. OFAC’s announcement further warned that any foreign financial institution that knowingly facilitates significant transactions or provides significant financial services for any of the designated individuals may be subject to U.S. correspondent account or payable-through account sanctions.