On January 16, 2025, the U.S. Department of the Treasury’s Office of Foreign Assets Control designated a network of IT workers that generates revenues for the Democratic People’s Republic of Korea (“DPRK”) government in violation of U.S. and United Nations sanctions. OFAC designated a network comprised of two individuals and four entities, including Department 53 of The Ministry of the People’s Armed Forces (“Department 53”), a DPRK government weapons-trading department, and Liaoning China Trade Industry Co., Ltd, a company that allegedly shipped equipment to Department 53 for its IT workers abroad. Both companies were designated pursuant to Executive Order 13687 for being an entity controlled by the Government of North Korea.
OFAC also designated two front companies of Department 53 that employ DPRK IT workers in Laos, and the leaders of each front company. These designations were imposed pursuant to EO 13722 for engaging in or supporting the exportation of workers for North Korea, including exportation to generate revenues for Government of North Korea, or for acting on behalf of a person designated pursuant to EO 13722.
As a result of these designations, all property and interests in property of this designee 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 a designated person. Entities owned 50 percent or more by one or more blocked persons are also blocked.