World's second-largest tobacco company to pay $635 million for violating sanctions against North Korea

British American Tobacco to pay $635 million for violating North Korea sanctions.

The world's second-largest tobacco company has agreed to pay over $635 million to the United States after its subsidiary admitted to violations of sanctions against North Korea, the company announced Tuesday.

The British American Tobacco subsidiary pleaded guilty to conspiring to commit bank fraud and violating U.S. sanctions against North Korea by selling tobacco products to the country between 2007 and 2017, according to newly unsealed court documents.

"On behalf of BAT, we deeply regret the misconduct arising from historical Business activities that led to these settlements, and acknowledge that we fell short of the highest standards rightly expected of us," Jack Bowles, chief executive of BAT, said in the Tuesday statement.

PHOTO: North Korean propaganda village "Gijungdong" is seen from an South Korea's observation post inside the JSA during a media tour at the Joint Security Area (JSA) on the Demilitarized Zone (DMZ) in Paju, South Korea, March 3, 2023.
North Korean propaganda village "Gijungdong" is seen from an South Korea's observation post inside the JSA during a media tour at the Joint Security Area (JSA) on the Demilitarized Zone (DMZ) in the border village of Panmunjom in Paju, South Korea, March 3, 2023.
Pool via Reuters, FILE

Beginning in 2007, BAT outsourced sales to North Korea to a third-party Singapore-based company, resulting in over $400 million in transactions passing through the banking system, according to the documents. North Korean buyers served as a front for the Hermit Kingdom, the documents add.

BAT says it has entered into a deferred prosecution agreement with DOJ while its Singaporean subsidiary entered into a plea agreement with the Department of Justice.

PHOTO: The Department of Justice seal is displayed on a podium during a news conference at the U.S. Attorney's Office in New York, July 2, 2020.
The Department of Justice seal is displayed on a podium during a news conference at the U.S. Attorney's Office in New York, July 2, 2020.
Bloomberg via Getty Images

The company also entered into a settlement with the Treasury Department's Office of Foreign Assets Control, with the total amount payable to the U.S. through all three cases reaching $635.2 million plus interest.

MORE: Ukraine, North Korea and Iran included in leaked documents

North Korea has used the production and trafficking of counterfeit cigarettes as one of its largest sources of revenue to help advance its military and WMD programs. Smuggled tobacco products are believed to generate significant revenue, raking in as much as $20 for every $1 spent in some instances.

Comments

Post a Comment

Popular posts from this blog

Gas stove procedural defeat puts the fragility of McCarthy's speakership on full display

Image
The revolt of 11 Republicans to join Democrats in striking down a procedural first step on gas stove legislation shows the fragility of McCarthy's speakership. The gas stove debate is boiling over, but it's Kevin McCarthy's speakership that may have been burned. A procedural first step to take up GOP-backed legislation to prohibit the federal government from banning gas stove s failed Tuesday afternoon -- at the hands of 12 GOP lawmakers. It was merely the first opportunity for House Freedom Caucus members dissatisfied with McCarthy and President Joe Biden's debt limit deal to revolt publicly against the speaker, joining 208 Democrats to vote down the rule. MORE: Why debt ceiling bill is a major test of Kevin McCarthy's leadership While it may be wonky, this procedural hurdle puts the fragility of McCarthy's speakership on full display. "We're not going to live in the era of the imperial speaker anymore," GOP Rep. Matt Gaetz told reporters...
Read more

Biden says Putin is losing 'war in Iraq' -- not Ukraine -- in latest gaffe

Image
Twice in 24 hours Biden misspoke when discussing the Ukraine-Russia war. Twice in 24 hours President Joe Biden misspoke when discussing the Russian invasion of Ukraine, referring to it instead as the war "in Iraq." The first apparent gaffe occurred Tuesday when Biden was courting Democratic donors at a fundraiser in Chevy Chase, Maryland. "Think about this: If anybody told you -- and my staff wasn't so sure, either -- that we'd be able to bring all of Europe together in the onslaught on Iraq and get NATO to be completely united, I think they would have told you it's not likely," Biden said. "The one thing Putin counted on was being able to split NATO." MORE: Russian military leaders were aware of Prigozhin's mutiny plan: US officials The second mistake happened Wednesday as Biden departed Washington for Chicago, where he delivered a major speech on his economic philosophy. On the South Lawn, Biden was asked about whether Russia's V...
Read more

Blockbuster Supreme Court decisions to come on student loans, affirmative action and more

Image
The justices will hand down their next round of opinions on Tuesday at 10 a.m. ET. The Supreme Court has left this term's blockbuster decisions for last, with rulings expected this week on student loans , affirmative action and more. The justices will hand down their next round of opinions on Tuesday at 10 a.m. ET. There are 10 total cases remaining from the term that began back in October. Their rulings will decide the fate of millions of Americans with federal student loans, a 40-year precedent of race-conscious college admissions processes, how federal elections are run in the U.S. and LGBTQ+ rights. MORE: Chief Justice John Roberts defends Supreme Court's 'highest standards of conduct,' offers no new rules Already this term, the Supreme Court has weighed in on cases involving the Voting Rights Act, the Biden administration's deportation policy, the Indian Child Welfare Act and social media liability. Here's a closer look at four major issues left to...
Read more