On April 1, 2022, the US Department of the Treasury’s Office of Foreign Assets Control designated five entities for supporting the Democratic People’s Republic of Korea (DPRK) and its development of weapons of mass destruction (WMD) and ballistic missile programs. According to OFAC, the DPRK has conducted a series of recent ballistic missile tests including intercontinental ballistic missile launches (ICBM) as recently as February 26, March 4, and March 24, 2022, which clearly demonstrates the DPRK’s intention to advance its unlawful WMD and ballistic missile programs in violation of multiple United Nations Security Council resolutions. In an effort to target the research and development organization directly linked to the DPRK’s ICBMs, OFAC designated the DPRK Ministry of Rocket Industry and four of its revenue generating subsidiaries pursuant to Executive Order 13382, which targets proliferators of WMD and their supporters.
As a result of these designations, all property and interests in property of the entities designated on April 1 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.