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United States Obtains $629 Million Settlement with British American Tobacco to Resolve Illegal Sales to North Korea, Charges Facilitators in Illicit Tobacco Trade
"British American Tobacco and its subsidiary engaged in an elaborate scheme to circumvent U.S. sanctions and sell tobacco products to North Korea, allowing funds to illegally flow into the coffers of the Democratic People's Republic of Korea (DPRK)." -Assistant Attorney General for National Security Matthew G. Olsen
"Today's action, which involves the largest North Korean sanctions penalty in the history of the Justice Department, should serve as a clear warning to companies everywhere about the costs and consequences of violating U.S. sanctions." -Assistant Attorney General for National Security Matthew G. Olsen
"Companies that seek to profit from circumventing sanctions by obscuring their involvement will be discovered and will pay a price...Firms that deal with blocked persons, even indirectly, will be held accountable for actions which undermine the integrity of the U.S. financial system." -Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson.
"The United States is steadfast in its commitment to enforcing sanctions and withholding revenue for dictator Kim Jong-un. The charges unsealed today illustrate that The Department of Justice will hold North Korean facilitators accountable for their illegal efforts to prop up the North Korean regime and assist it in obtaining funds to develop nuclear weapons." -U.S. Attorney Matthew M. Graves for the District of Columbia
"The FBI remains steadfast in its commitment to investigate North Korea's evasion of sanctions placed on its government...To those contemplating similar actions, be forewarned: the full force of the FBI and its federal law enforcement partners will find you." -Assistant Director Suzanne Turner of the FBI's Counterintelligence Division
"Today's actions demonstrate the Department's commitment to our whole of government effort to address DPRK's illicit activities. The U.S. will continue to use all available tools to impede the DPRK's ability to continue funding and developing its unlawful WMD and ballistic missile programs." -Department of State Deputy Special Representative for the DPRK Dr. Jung Pak
On April 25, 2023 British American Tobacco (BAT) and its subsidiary, BAT Marketing Singapore (BATMS), one of the world's largest manufacturers of tobacco products based in the United Kingdom, agreed to pay combined penalties of more than $629 million to resolve bank fraud and sanctions violations charges with U.S. authorities, arising out of the companies' scheme to do business in North Korea through a third-party company in Singapore, in violation of the bank fraud statute and the International Emergency Economic Powers Act (IEEPA). Separately, charges were unsealed in the District of Columbia against a North Korean banker and Chinese facilitators for their roles in facilitating the illicit sale of tobacco products in North Korea.
Updated June 21, 2023
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