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| Version 1 | Version 2 |
|---|---|
| British American Tobacco to pay $635m for North Korea sanctions breaches | British American Tobacco to pay $635m for North Korea sanctions breaches |
| (about 3 hours later) | |
| Kim Jong Un, seen here in 2017, is known to be a heavy smoker | Kim Jong Un, seen here in 2017, is known to be a heavy smoker |
| British American Tobacco is to pay $635m (£512m) plus interest to US authorities after a subsidiary admitted selling cigarettes to North Korea in violation of sanctions. | British American Tobacco is to pay $635m (£512m) plus interest to US authorities after a subsidiary admitted selling cigarettes to North Korea in violation of sanctions. |
| The US authorities said the settlement related to BAT activity in North Korea between 2007 and 2017. | The US authorities said the settlement related to BAT activity in North Korea between 2007 and 2017. |
| BAT's head Jack Bowles said "we deeply regret the misconduct". | BAT's head Jack Bowles said "we deeply regret the misconduct". |
| The US has imposed severe sanctions on North Korea over its nuclear and ballistic missile activities. | The US has imposed severe sanctions on North Korea over its nuclear and ballistic missile activities. |
| Tuesday's settlement was between BAT and America's Department of Justice (DOJ) and the Treasury Department's Office of Foreign Assets Control. | Tuesday's settlement was between BAT and America's Department of Justice (DOJ) and the Treasury Department's Office of Foreign Assets Control. |
| BAT is one of the world's largest tobacco multinationals and one of the UK's 10 biggest companies. It owns major cigarette brands including Lucky Strike, Dunhill and Pall Mall. | BAT is one of the world's largest tobacco multinationals and one of the UK's 10 biggest companies. It owns major cigarette brands including Lucky Strike, Dunhill and Pall Mall. |
| In a statement, BAT said it had entered into a "deferred prosecution agreement with DOJ and a civil settlement agreement with OFAC, and an indirect BAT subsidiary in Singapore has entered into a plea agreement with DOJ". | In a statement, BAT said it had entered into a "deferred prosecution agreement with DOJ and a civil settlement agreement with OFAC, and an indirect BAT subsidiary in Singapore has entered into a plea agreement with DOJ". |
| The DOJ said BAT had also conspired to defraud financial institutions in order to get them to process transactions on behalf of North Korean entities. | The DOJ said BAT had also conspired to defraud financial institutions in order to get them to process transactions on behalf of North Korean entities. |
| North Korean leader Kim Jong Un is known to be a heavy smoker. Last year the US attempted to get the UN Security Council to ban tobacco exports to North Korea, but this was vetoed by Russia and China. | North Korean leader Kim Jong Un is known to be a heavy smoker. Last year the US attempted to get the UN Security Council to ban tobacco exports to North Korea, but this was vetoed by Russia and China. |
| At a briefing on Tuesday, the DOJ's assistant Attorney General Matthew Olsen said the settlement was the "culmination of a long-running investigation", describing it as "the single largest North Korean sanctions penalty in the history of the Department of Justice". | At a briefing on Tuesday, the DOJ's assistant Attorney General Matthew Olsen said the settlement was the "culmination of a long-running investigation", describing it as "the single largest North Korean sanctions penalty in the history of the Department of Justice". |
| He said that BAT was engaged in an "elaborate scheme to circumvent US sanctions and sell tobacco products to North Korea" via subsidiaries. | He said that BAT was engaged in an "elaborate scheme to circumvent US sanctions and sell tobacco products to North Korea" via subsidiaries. |
| "Between 2007 and 2017 these third-party companies sold tobacco products to North Korea and received approximately $428m." | "Between 2007 and 2017 these third-party companies sold tobacco products to North Korea and received approximately $428m." |
| Criminal charges were also revealed against North Korean banker Sim Hyon-Sop, 39, and Chinese facilitators Qin Guoming, 60, and Han Linlin, 41, for facilitating sales of tobacco to North Korea. | Criminal charges were also revealed against North Korean banker Sim Hyon-Sop, 39, and Chinese facilitators Qin Guoming, 60, and Han Linlin, 41, for facilitating sales of tobacco to North Korea. |
| A $5m (£4.4m) bounty was put for any information leading to the arrest or conviction of Mr Sim, and $500,000 (£402,905) rewards for each of the other two suspects. | A $5m (£4.4m) bounty was put for any information leading to the arrest or conviction of Mr Sim, and $500,000 (£402,905) rewards for each of the other two suspects. |
| They were accused of buying leaf tobacco for North Korean state-owned cigarette makers and falsifying documents to trick US banks into processing transactions worth $74m. North Korean manufacturers including one owned by the military made about $700m thanks to these deals. | |
| Pyongyang has for years faced multiple rounds of tough sanctions in response to its ballistic missile launches and nuclear tests. | Pyongyang has for years faced multiple rounds of tough sanctions in response to its ballistic missile launches and nuclear tests. |
| However that has not deterred Mr Kim from continuing to develop the country's weapons programme. | However that has not deterred Mr Kim from continuing to develop the country's weapons programme. |
| Why South Koreans want the nuclear bomb | Why South Koreans want the nuclear bomb |
| What missiles has North Korea been testing? | What missiles has North Korea been testing? |
| Watch: North Korea launches Hwasong-15 missile | Watch: North Korea launches Hwasong-15 missile |
| Watch: North Korea launches Hwasong-15 missile | Watch: North Korea launches Hwasong-15 missile |
| Related Topics | Related Topics |
| Tobacco industry | Tobacco industry |
| Kim Jong-un | Kim Jong-un |
| British American Tobacco | British American Tobacco |
| United States | United States |
| North Korea | North Korea |