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Cigarette-filter Maker to Pay Fines for Violating US Sanctions on N. Korea

Written: 2020-07-18 11:03:40Updated: 2020-07-18 13:45:54

Cigarette-filter Maker to Pay Fines for Violating US Sanctions on N. Korea

Photo : YONHAP News

The Washington Post reported Friday that a United Arab Emirates subsidiary of a British plastics and fiber component maker will pay 665-thousand dollars to settle allegations that it supported North Korea’s nuclear weapons and missile program by engaging in illegal trade in violation of U.S. sanctions.

The U.S. Treasury Department’s Office of Foreign Assets Control announced the settlement with Essentra FZE, which will pay the fine for a deferred prosecution agreement and not face criminal charges.

Essentra FZE, a UAE subsidiary of the British firm Essentra Plc, has exported cigarette filters to companies abroad including China.

According to court filings in which the company admitted responsibility, cigarette filters were exported to North Korea through a network of front companies in China and other countries, using deceptive practices to move money through U.S. banks.

U.S. sanctions imposed in 2016 bar international shipments that can further Pyongyang’s nuclear or missile programs. They also cut the regime off from the U.S. banking system and expand the list of luxury items its elite cannot receive.

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