U.S. Sanctions Shipping Firm, Individuals for Alleged Oil Exports to North Korea

The U.S. imposed sanctions against a shipping company and two individuals for allegedly exporting oil to North Korea, which the U.S. said supports Pyongyang’s nuclear and military programs.

The Treasury Department on Friday sanctioned two individuals, Kwek Kee Seng of Singapore and Chen Shih Huan of Taiwan, as well as Marshall Islands-registered shipping company New Eastern Shipping Co., which the U.S. said owns a vessel called the Courageous that was involved in alleged sanctions evasion activities. The Treasury also sanctioned two Singaporean companies that are owned or controlled by Mr. Kwek.

The U.S. said the Courageous, also known as the Sea Prima, has participated in several deliveries of refined petroleum to North Korea, including ship-to-ship transfers to North Korean vessels that violated United Nations sanctions.

North Korea faces sanctions from the U.S. and the U.N., including restrictions on its import of petroleum products. Ship-to-ship transfers have been identified as one way North Korea circumvents these sanctions.

Efforts to reach Messrs. Kwek and Chen and New Eastern Shipping weren’t successful.

Friday’s sanctions come after the U.S. Justice Department filed a criminal complaint against Mr. Kwek in April 2021 for allegedly conspiring to evade economic sanctions on North Korea and for conspiracy to money launder. Mr. Kwek is wanted by the Federal Bureau of Investigation, and a federal judge in the Southern District of New York last year signed a civil forfeiture order of the Courageous vessel.

The U.S. has stepped up scrutiny of the maritime industry for its role in alleged sanctions evasion over the past few years. The Treasury Department, the State Department and the Coast Guard in May 2020 issued a joint advisory for the maritime, energy and metals sectors, identifying deceptive shipping practices used to obscure the true destination or origin of ships.

Brian Nelson, undersecretary for terrorism and financial intelligence, on Friday said North Korea’s long-range ballistic missile launches, including those over Japan, “demonstrate a continued disregard for United Nations Security Council resolutions.”

North Korea test-fired two short-range ballistic missiles off its east coast Thursday, shortly after the U.S. said at the United Nations that Pyongyang is feeling emboldened. The Thursday test was the Kim Jong Un regime’s sixth weapons launch in 12 days.
Source: Wall Street Journal