US Seizes Oil Tanker Used to Violate Sanctions Against North Korea
A federal court ordered an oil tanker to be forfeited to the U.S. after it helped illegally ship oil to North Korea in violation of U.S. and United Nations sanctions, the Justice Department said July 30. The agency also said sanctions evasion charges are pending against Kwek Kee Sen, a Singaporean national and the owner of the ship, who remains at large.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
The Justice Department said Kwek used the ship -- M/T Courageous -- in an “extensive scheme” to violate sanctions by conducting illegal ship-to-ship transfers. Between August and December 2019, the oil tanker transferred more than $1.5 million worth of oil to a North Korean ship, the Saebyol, which had been designated by the Treasury Department. To avoid detection, Kwek used front companies to buy the tanker, lied to international shipping authorities about M/T Courageous’ dealings with North Korea and falsely identified M/T Courageous as another ship, the Justice Department said.
Kwek used U.S. dollars processed through U.S. correspondent accounts to purchase the oil and “necessary services” for the ship, including crew salaries. Kwek also used front companies to “disguise the nature of the transactions” and worked to hide the location information for the boats carrying the illegal shipments, the Justice Department said. M/T Courageous was eventually seized by Cambodian authorities in March 2020 and held under a seizure warrant.