On January 12, 2022, the US Department of the Treasury’s Office of Foreign Assets Control designated five individuals responsible for procuring goods to support the Democratic People’s Republic of Korea’s (DPRK) weapons of mass destruction (WMD) and ballistic missile-related programs. OFAC reports that the five individuals were affiliated with Second Academy of Natural Sciences (SANS), an organization designated by the US Department of State in 2010 pursuant to EO 13382, which targets proliferators of WMD and their supporters, and designated by the UN in 2013 for its support of the DPRK’s weapons programs. According to OFAC, the five individuals – one Russia-based and four China-based representatives – worked for SANS-subordinate organizations to procure goods such as telecommunications equipment, steel alloys, software and chemicals for the DPRK. Each was designated by OFAC pursuant to EO 13382.
In a related action, the US Department of State designated two individuals and one entity pursuant to EO 13382 for engaging in actions that contribute to the proliferation of WMD or their means of delivery by DPRK.
As a result of these designations, all property and interests in property of today’s designees within the United States or within the possession or control of a U.S. person are blocked, and U.S. persons are generally prohibited from engaging in transactions involving the designated persons. In addition, any foreign financial institution that knowingly facilitates a significant transaction for a sanctioned person could have its access to the US financial system severed.