Senat Blacklisted over North Korean Arms Smuggling

The U.S. Department of the Treasury has blacklisted Singapore-based Senat Shipping Company (Senat) for its involvement in arms import activities of North Korean shipping company Ocean Maritime Management Company (OMMC).

The Treasury said it has designated Senat for providing extensive material support to OMMC, including arranging the purchase, repair, certification, and crewing of OMMC vessels.

The blacklisting also extends to Senat’s President, Leonard Lai, for “providing material support to and acting for or on behalf of Senat.”  

“As a result of today’s (July 23rd) actions, any property or interests in property of the designated persons that are or come within U.S. jurisdiction must be frozen.  Also, transactions by U.S. persons or within the United States involving the property of designated persons, including the identified vessel, are generally prohibited,” the Treasury Department said.

In addition to these designations, Treasury’s Office of Foreign Assets Control (OFAC) also included known aliases for OMMC and two Tanchon Commercial Bank officials into the designation.  Tanchon Commercial Bank is known as the primary financial facilitator of North Korea’s ballistic missile program.

The aliases in question, believed to be created by  OMMC’s headquarters in Pyongyang, North Korea to evade sanctions, are Haeyang Crew Management Company and Korea Mirae Shipping Company Ltd, which have been added to OMMC’s SDN List entry as alternative names for OMMC.

“Arms shipments transported by OMMC serve as a key resource for North Korea’s ongoing proliferation activities.  Sales from these shipments contribute to North Korea’s other illicit programs,” said Acting Under Secretary for Terrorism and Financial Intelligence Adam J. Szubin.

“We are working to make it as challenging as possible for North Korea to continue its unlawful behavior by actively targeting anyone or any business that supports these illicit arms transfers.”

In July 2014, the United States and the United Nations (UN) imposed sanctions on OMMC over its attempt to import a concealed shipment of arms and related materiel into the DPRK.