US Imposes Sanctions on Three Individuals Accused of Supporting North Korea’s Illicit Activities
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on three individuals accused of providing financial support to North Korea through illicit financing and malicious cyber activities.
Background
The sanctioned individuals are believed to have laundered stolen virtual currency and deployed IT workers to fraudulently obtain employment in order to generate revenue for the regime. This illegal activity is a threat to international security, as it generates revenue for North Korea’s unlawful weapons of mass destruction and ballistic missile programs.
The Sanctioned Individuals
The three individuals being sanctioned are:
- Wu Huihui: A PRC-based OTC virtual currency trader who facilitated the conversion of stolen virtual currency into fiat currency.
- Cheng Hung Man: A Hong Kong-based OTC trader who worked with Wu to remit payment to companies in exchange for virtual currency.
- Sim Hyon Sop: The Deputy Representative of Korea Kwangson Banking Corp (KKBC), an entity previously designated by OFAC. KKBC was involved in coordinating millions of dollars in financial transfers for North Korea.
Illicit Activities
The DPRK generates revenue through the deployment of IT workers who fraudulently obtain employment in the technology and virtual currency industries. The regime maintains a workforce of thousands of highly skilled IT workers around the world to generate revenue that contributes to its unlawful WMD and ballistic missile programs.
Consequences of Sanctions
As a result of today’s action:
- All property and interests in property of the sanctioned individuals are blocked and must be reported to OFAC.
- Any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked.
The US Treasury Department is urging financial institutions to report any transactions with the designated individuals and entities. Foreign financial institutions are reminded that knowingly facilitating significant transactions or providing significant financial services for the sanctioned individuals could be subject to US correspondent or payable-through account sanctions.
Additional Information
For more information on the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897. For guidance on complying with sanctions, see OFAC’s Sanctions Compliance Guidance for the Virtual Currency Industry and OFAC’s FAQs on virtual currency.
Key Takeaways
- The US has imposed sanctions on three individuals accused of providing financial support to North Korea through illicit financing and malicious cyber activities.
- The sanctioned individuals are believed to have laundered stolen virtual currency and deployed IT workers to fraudulently obtain employment in order to generate revenue for the regime.
- Financial institutions are urged to report any transactions with the designated individuals and entities, and foreign financial institutions are reminded of the risks associated with knowingly facilitating significant transactions or providing significant financial services for the sanctioned individuals.