OFAC designated two Taiwanese individuals and three entities for conducting ship-to-ship ("STS") transfers to help North Korea obtain petroleum products, in violation of U.S. sanctions and UN resolutions.

According to OFAC, the individuals and entities engaged in at least two STS transfers with Democratic People's Republic of Korea-flagged vessels. OFAC found that the individuals used a Panama-flagged vessel, the Shang Yuan Bao, to transport 1.7 million liters of petroleum products. Pursuant to OFAC's action, the vessel now has been identified as blocked property. OFAC stated that one of the sanctioned individuals, Huang Wang Ken, also falsely reported that the petroleum products were being exported to the Philippines.

As a result of OFAC's action, all property and interests in property of the designated individuals and entities in the United States, or in the possession or control of U.S. persons, must be blocked and reported to OFAC. OFAC regulations generally forbid all dealings by U.S. persons, and all transactions that occur within or transiting the United States, that involve the property or interests in property of blocked individuals or entities. These blocking requirements and prohibitions also apply to any entities owned 50 percent or more by any designated individuals or entities. OFAC reminded non-U.S. financial institutions and other persons that engaging in certain transactions with the individuals and entities targeted by this action may result in OFAC designating or otherwise sanctioning such non-U.S. financial institutions or other persons.

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