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Financial Services Law Insights and Observations

OFAC sanctions individuals connected to DPRK

Financial Crimes Of Interest to Non-US Persons OFAC Department of Treasury OFAC Sanctions OFAC Designations SDN List North Korea

Financial Crimes

On November 8, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against two individuals for engaging in activities related to transportation and procurement activities on behalf of the Democratic People’s Republic of Korea (DPRK). According to OFAC, these individuals acted on behalf of an entity previously designated by OFAC for operating in the transportation industry in the DPRK economy (covered by InfoBytes here). OFAC also noted that the designation is a part of continuing efforts by the U.S. to limit DPRK’s ability to advance its unlawful weapons of mass destruction and ballistic missile programs, and follows numerous recent DPRK ballistic missile launches. As a result, all property, and interests in property of the designated persons that are in the U.S. or in the possession or control of U.S. persons, must be blocked and reported to OFAC. OFAC regulations generally prohibit all dealings by U.S. persons or within the U.S. (including transactions transiting the U.S.) that involve any property or interests in property of blocked or designated persons. OFAC further warned that engaging in certain transactions with the designated individuals and entities entails risk of designation. Additionally, OFAC warned that a foreign financial institution that knowingly facilitates a significant transaction or provides significant financial services for any of the designated individuals or entities could be subject to U.S. correspondent or payable-through account sanctions.