On March 11, 2022, the US Department of the Treasury’s Office of Foreign Assets Control designated two individuals and three entities in Russia for supporting the ongoing development of weapons of mass destruction (WMD) and ballistic missile programs for the Democratic People’s Republic of Korea (DPRK) in violation of multiple United Nations Security Council resolutions. The sanctions were aimed at a group of Russian individuals and entities that support Pak Kwang Hun, a procurement agent who was designated by OFAC in 2018 pursuant to Executive Order 13687 as an official of the Workers’ Party of Korea. OFAC reports that Pak Kwang Hun continues to operate out of Russia to facilitate military-related sales for the DPRK defense industry with the assistance of the designated Russian supporters. The new designations were imposed by OFAC pursuant to EO 13687 for providing financial, material or technological support or the Government of North Korea or for being owned or controlled by one of the newly-designated individuals.
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 US person are blocked, and US persons are generally prohibited from engaging in transactions involving the designated persons. In addition, any party that engages in certain transactions risks exposure to secondary sanctions and any foreign financial institution that knowingly facilitates a significant transaction or provides financial services for a designated person could be subject US correspondent or payable-through accounts sanctions.
Department of Treasury Press Release