US authorities have a seized a North Korean handysize bulker it alleges has been involved in sanctions busting.
The 27,881-dwt Wise Honest (built 1989) is said to have been used to illicitly ship coal from North Korea and to deliver heavy machinery back to the country.
This conduct violates longstanding US law and United Nations Security Council resolutions, the US Justice Department (DoJ) said.
“This sanctions-busting ship is now out of service,” said US Assistant Attorney General for National Security John Demers.
“North Korea, and the companies that help it evade US and UN 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 US and the global community.
“We are deeply committed to the role the Justice Department plays in applying maximum pressure to the North Korean regime to cease its belligerence.”
The civil action was described as the “first-ever seizure of a North Korean cargo vessel for violating international sanctions.
“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,” said the US Attorney for the Southern District of New York Geoffrey Berman.
“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.
“We are willing and able to deploy the full array of law enforcement tools to detect, deter, and prosecute North Korea’s deceptive attempts to evade sanctions.”
From at least November 2016 through April 2018, the Wise Honest was allegedly used by Korea Songi Shipping Company, to export coal from North Korea to foreign purchasers and import machinery to North Korea, according to the documents filed in Manhattan federal court.
On or about 14 March, 2018, the Wise Honest was loaded with coal in Nampo, North Korea. On or about 2 April, 2018, foreign maritime authorities are said to have intercepted and detained the bulker.
The vessel was tracked down despite reportedly not broadcasting an AIS signal since August 4, 2017, the DoJ said.
In connection with the sanctions busting activities, Kwon Chol Nam, one of Korea Songi Shipping Company’s representatives, is said to have paid for numerous improvements, equipment purchases, and service expenditures for the Wise Honest in US dollars through what was described as “unwitting US financial institutions”.
Payments totaling more than $750,000 were transmitted through accounts at a US financial institution in connection with the March 2018 shipment of coal on board the Wise Honest, the DoJ said.
