US Seizes North Korean Ship for Sanctions Violations

The U.S. seized a North Korean cargo ship for violating U.S. and international sanctions after it transported coal and “heavy machinery” and used U.S. banks for various transactions, the Department of Justice said in a May 9 press release.

From November 2016 to April 2018, the ship, called the Wise Honest, was used by Korea Songi Shipping Company, an affiliate of Korea Songi General Trading Corporation, to export coal from North Korea and import machinery. Kwon Chol Nam, a representative for the shipping company, used U.S. dollars to pay for “numerous improvements, equipment purchases, and service expenditures” for the ship, using “unwitting” U.S. banks, the department said.

The department said in the complaint that payments of more than $750,000 were sent through U.S. banks related to a March 2018 coal shipment by the ship. During that shipment, “foreign maritime authorities” intercepted the ship, DOJ said, and discovered that it had not been broadcasting its automatic identification system (AIS) since August 2017, which is required by “maritime regulations.” Shippers tried to hide the Wise Honest’s association with North Korea in shipping documents, listing false countries for the ship’s nationality and product origin, the press release said.

In a statement, U.S. Attorney Geoffrey Berman said the “scheme” was designed to allow North Korea to purposely evade U.S. sanctions and deliver “high-grade coal to foreign buyers.” Berman also said the machine imports were “helping expand North Korea’s capabilities and continuing the cycle of sanctions evasion.”

“This sanctions-busting ship is now out of service,” Assistant Attorney General for National Security John Demers said in a statement. “North Korea, and the companies that help it evade U.S. and U.N. sanctions, should know that we will use all tools at our disposal -- including a civil forfeiture action such as this one or criminal charges -- to enforce the sanctions enacted by the U.S. and the global community.”

In March, the Treasury’s Office of Foreign Assets Control issued an updated 19-page guide on identifying and avoiding North Korea’s illegal shipping practices (see 1903210052).