U.S. Agencies Warn Businesses of North Korean Sanctions Evasion Tactics

In an advisory titled: Risks for Businesses with Supply Chain Links to North Korea, the U.S. State Department, the U.S. Treasury Department Office of Foreign Assets Control, and the U.S. Department of Homeland Security Customs and Border Protection and Immigration and Customs Enforcement (the “agencies”) warned of tactics used by North Korea to evade sanctions.

The agencies warned businesses that falling for attempts by North Korea to evade U.S. and UN trade and labor sanctions could subject those businesses to legal liability. The agencies emphasized two primary areas of risk for businesses: (i) unintentionally sourcing services, goods or technology from North Korea and (ii) having North Korean citizens or nationals, whose labor produces revenue for the North Korean government, in a company’s supply chains.

The agencies urged businesses to implement necessary due diligence best practices, and to review their supply chains for North Korean laborers, goods and services.