On May 27, 2022, the US Department of the Treasury’s Office of Foreign Assets Control designated one individuals and three entities, including two Russian financial institutions, for supporting or conducting transactions for the Democratic People’s Republic of Korea’s (DPRK) weapons programs responsible for the development of weapons of mass destruction (WMD) and ballistic missiles and the previously-designated Air Koryo, the national airline of the DPRK. The individual and entities were sanctioned pursuant to Executive Order 13382, which targets proliferators of WMDs and their supporters, just days after the DPRK launched three missiles, including one intercontinental ballistic missile (ICBM), on May 24, 2022. According to OFAC, the DPRK has violated multiple United Nationals Security Council resolutions (UNSCRs) this year in connection with the launch of 23 ballistic missiles, 6 of which were ICBMs.
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.