OFAC Sanctions Banks Aiding Russian-North Korean Financial Ties
The Office of Foreign Assets Control this week sanctioned five entities and one person involved with Russian and North Korean efforts to set up illegal payments mechanisms and help the countries evade sanctions. The designations target MRB Bank, based in the Russia-occupied Georgian region of South Ossetia, along with Russia-based TSMRBank, OOO; Russian Financial Corporation Bank JS; Stroytreyd LLC and Timer Bank, AO. OFAC also sanctioned Dmitry Yuryevich Nikulin, vice president of TSMRBank.
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 banks have helped Russia pay for fuel exports from Russia to North Korea, access frozen North Korean funds held in defunct Russian banks, and facilitate other efforts to “enhance financial collaboration between the two countries,” OFAC said.
Bradley Smith, the Treasury Department’s acting undersecretary for terrorism and financial intelligence, said the sanctions highlight “our significant concern with efforts by Russia and [North Korea] to deepen financial cooperation, in violation of UN Security Council resolutions.”