OFAC has added the following persons:
HWANG, Kil Su (Korean: 황길수), Congo, Democratic Republic of the; DOB 09 Dec 1973; POB Pyongyang, North Korea; nationality Korea, North; Gender Male; Secondary sanctions risk: North Korea Sanctions Regulations, sections 510.201 and 510.210; Transactions Prohibited For Persons Owned or Controlled By U.S. Financial Institutions: North Korea Sanctions Regulations section 510.214 (individual) [DPRK4].
PAK, Hwa Song (Korean: 박화성), 1041 avenue Ulindi, Quartier Golf, Lubumbashi, Katanga, Congo, Democratic Republic of the; DOB 13 Oct 1962; POB Pyongyang, North Korea; nationality Korea, North; Gender Male; Secondary sanctions risk: North Korea Sanctions Regulations, sections 510.201 and 510.210; Transactions Prohibited For Persons Owned or Controlled By U.S. Financial Institutions: North Korea Sanctions Regulations section 510.214 (individual) [DPRK4].
and entities:
CHILSONG TRADING CORPORATION (a.k.a. CH'I'LSO'NG TRADING; a.k.a. CHILSONG TRADING COMPANY; a.k.a. CHILSONG TRADING CORP.; a.k.a. CHILSUNG TRADING COMPANY; a.k.a. KOREA CHILSONG TRADING CORPORATION), Pyongyang, Korea, North; Secondary sanctions risk: North Korea Sanctions Regulations, sections 510.201 and 510.210; Transactions Prohibited For Persons Owned or Controlled By U.S. Financial Institutions: North Korea Sanctions Regulations section 510.214; Target Type Government Entity [DPRK2].
CONGO ACONDE SARL, 1041 avenue Ulindi, Quartier Golf, Lubumbashi, Katanga, Congo, Democratic Republic of the; Secondary sanctions risk: North Korea Sanctions Regulations, sections 510.201 and 510.210; Transactions Prohibited For Persons Owned or Controlled By U.S. Financial Institutions: North Korea Sanctions Regulations section 510.214; Organization Established Date 26 Feb 2018; Commercial Registry Number CD/LSH/RCCM/18-B-00029 (Congo, Democratic Republic of the) [DPRK4] (Linked To: PAK, Hwa Song).
KOREA PAEKHO TRADING CORPORATION (a.k.a. JOSON PAEKHO MUYOK HOESA; a.k.a. KOREA PAEKHO TRADING CORPORATION, LTD.; a.k.a. PAEKHO ARTS TRADING COMPANY; a.k.a. PAEKHO CONSTRUCTION SARL; a.k.a. PAEKHO FINE ART CORPORATION; a.k.a. PAEKHO TRADING COMPANY; a.k.a. WHITE TIGER TRADING COMPANY; a.k.a. "DEPARTMENT 30"; a.k.a. "KPTC"), Chongryu 3-dong, Taedonggang District, Pyongyang, Korea, North; Secondary sanctions risk: North Korea Sanctions Regulations, sections 510.201 and 510.210; Transactions Prohibited For Persons Owned or Controlled By U.S. Financial Institutions: North Korea Sanctions Regulations section 510.214; Target Type Government Entity [DPRK2].
to its North Korea sanctions program. And Treasury:
PRESS RELEASES
Treasury Targets DPRK Actors Illicitly Generating Revenue Abroad
March 1, 2023
WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned three entities and two individuals illicitly generating revenue in support of the government of the Democratic People’s Republic of Korea (DPRK).
“The DPRK’s unlawful weapons of mass destruction and ballistic missile programs threaten international security and regional stability,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “The United States remains committed to targeting the regime’s global illicit networks that generate revenue for these destabilizing activities.”
DPRK OVERSEAS REVENUE GENERATION
OFAC is designating Chilsong Trading Corporation (Chilsong) and Korea Paekho Trading Corporation (Paekho) pursuant to Executive Order (E.O.) 13687 for being agencies, instrumentalities, or controlled entities of the Government of North Korea or the Workers’ Party of Korea.
Chilsong is subordinate to the Government of North Korea, which uses trading companies like Chilsong to earn foreign currency, collect intelligence, and provide cover status for intelligence operatives.
Paekho has generated funds for the DPRK government since the 1980s by conducting art and construction projects on behalf of regimes throughout the Middle East and Africa. Paekho is subordinate to the DPRK Ministry of People’s Armed Forces (MPAF), which OFAC designated on June 1, 2017, pursuant to E.O. 13722. The United Nations (UN) designated MPAF in December 2017; pursuant to UN Security Council resolution 1718 (2006) and subsequent resolutions, no business may be conducted with or economic resources made available to MPAF or any individuals or entities acting for or on its behalf, including Paekho.
OFAC is also designating Hwang Kil Su (Hwang) and Pak Hwa Song (Pak) pursuant to E.O. 13810 for being North Korean persons, including North Korean persons that have engaged in commercial activity that generates revenue for the Government of North Korea or the Workers’ Party of Korea. Pak and Hwang established Congo Aconde SARL in the Democratic Republic of the Congo (DRC) to earn revenue from construction and statue-building projects with local governments. Under Pak and Hwang’s leadership, Congo Aconde SARL also opened U.S. dollar-denominated accounts at the DRC branch of a Cameroonian bank. Congo Aconde SARL is designated for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Pak, a person whose property and interests in property are concurrently being blocked pursuant to E.O. 13810.
According to a 2021 UN Panel of Experts report, Congo Aconde SARL was involved in projects to build several statues in the DRC from 2018 to at least late 2019; these projects involved Hwang and Pak. The Panel also considers Congo Aconde SARL to be a front company for Paekho.
The European Union has previously designated Chilsong, Paekho, Pak, and Hwang for engaging in sanctions evasion and being responsible for supporting the DPRK’s nuclear and ballistic missile programs.
SANCTIONS IMPLICATIONS
As a result of today’s action, pursuant to E.O. 13687 and E.O. 13810, all property and interests in property of the persons named above that are in the United States, or in the possession or control of U.S. persons, are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked.
In addition, persons that engage in certain transactions with the individuals or entities designated today may themselves be exposed to designation. Furthermore, any foreign financial institution that knowingly facilitates a significant transaction or provides significant financial services for any of the individuals or entities designated today could be subject to U.S. correspondent or payable-through account sanctions.
The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the Specially Designated Nationals and Blocked Persons (SDN) List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897.
U.S. Treasury Department Press Release
and State:
Designating Those Generating Revenue for the DPRK
PRESS STATEMENT
ANTONY J. BLINKEN, SECRETARY OF STATE
MARCH 1, 2023
The United States is committed to countering the Democratic People’s Republic of Korea’s (DPRK) efforts to generate revenue for its unlawful weapons of mass destruction (WMD) and ballistic missile programs. Today, we are taking action against three entities and two individuals that have attempted to do so.
The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is designating Chilsong Trading Corporation and Korea Paekho Trading Corporation pursuant to Executive Order (E.O.) 13687 for being agencies, instrumentalities, or controlled entities of the DPRK Government. OFAC is also designating Hwang Kil Su and Pak Hwa Song, as well as an entity owned or controlled by Pak, Congo Aconde SARL, pursuant to E.O. 13810.
These entities and individuals have all generated revenues, which the DPRK utilizes for its weapons programs. Pak and Hwang established Congo Aconde SARL in the Democratic Republic of the Congo to earn revenue from construction and statue-building projects with local governments. Chilsong is subordinate to the DPRK Government, which uses trading companies like Chilsong to earn foreign currency, collect intelligence, and provide cover status for intelligence operatives. Paekho has generated funds for the DPRK government since the 1980s by conducting art and construction projects on behalf of governments throughout the Middle East and Africa. Paekho is subordinate to the UN- and U.S.-designated DPRK Ministry of People’s Armed Forces.
Today’s action further aligns U.S. sanctions with our international partners. The European Union previously designated Chilsong, Paekho, Pak, and Hwang for engaging in sanctions evasion and being responsible for supporting the DPRK’s unlawful nuclear and ballistic missile programs.
U.S. State Department Press Release
issued press releases.
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