US seizes North Korean ship for sanctions violations

WASHINGTON

The U.S. announced Thursday it seized a North Korean vessel for allegedly violating international sanctions, marking the first seizure of a North Korean ship for sanctions evasion.

The 17,000-ton bulk carrier ship, the Wise Honest, was used to ship North Korean coal in violation of UN sanctions, according to the Justice Department. It is currently in U.S. custody following a warrant issued in the Southern District of New York.

“This sanctions-busting ship is now out of service,” Assistant Attorney General Demers said in a statement.

"North Korea, and the companies that help it evade U.S. and U.N. sanctions, should know that we will use all tools at our disposal — including a civil forfeiture action such as this one or criminal charges — to enforce the sanctions enacted by the U.S. and the global community," he added.

The Justice Department said the seizure was justified because payments to maintain, improve and equip the Wise Honest were made in U.S. dollars through American banks, which it said were unwitting in the sanctions-evading scheme.

“Our Office uncovered North Korea’s scheme to export tons of high-grade coal to foreign buyers by concealing the origin of their ship, the Wise Honest," U.S. Attorney Geoffrey Berman said in a statement. "This scheme not only allowed North Korea to evade sanctions, but the Wise Honest was also used to import heavy machinery to North Korea, helping expand North Korea’s capabilities and continuing the cycle of sanctions evasion. With this seizure, we have significantly disrupted that cycle."

The ship was used by the Korea Songi Shipping Company from November 2016 through April 2018 to export coal, according to court documents.

The company was designated by the Treasury Department in June 2017 for its role in the sale of North Korean coal. The department determined Songi is a subordinate of the North Korean military.