Singaporean companies suspected of supplying luxury goods to North Korea

The BBC reports that it has seen a leaked draft of a UN report claiming that two Singapore-based companies have been supplying luxury goods to North Korea (‘DPRK’) in violation of UN sanctions. Other companies in Asia are also reportedly namechecked in the draft.

The report alleges that the two firms, OCN and T Specialist, which share the same director, supplied luxury goods, including wine and spirits, to DPRK until July 2017. The supply of luxury items to DPRK has been banned under UN sanctions since 2006 and is also prohibited by Singaporean law.

The BBC states that according to the report, between 2011 and 2014 over US$2m of transactions (allegedly proceeds from the sale of goods in DPRK) transited from an account set up by OCN and T Specialist in North Korean bank Daedong Credit Bank to T Specialist’s accounts in Singapore. Money transfers have been prohibited under UN sanctions since 2013, and financial institutions in Singapore are prohibited from providing financial assistance or facilitating trade with DPRK.

The two companies are also accused in the report of having ‘longstanding, close ties’ with Ryugyong Commercial Bank, which was sanctioned by the US in 2017.

The companies deny any wrongdoing.