On April 25th, the US Department of Justice announced that British American Tobacco (BAT) has been fined $635 million for selling cigarette products to North Korea, which is under US sanctions, reports BBC. The Department of Justice stated that BAT conspired to defraud financial institutions, enabling them to process transactions on behalf of North Korean entities. It is claimed that a third-party company operating under the control of BAT's Singapore subsidiary sold over $400 million worth of tobacco products between 2007 and 2017. The money was subsequently transferred back to British American Tobacco.
As part of a settlement agreement, BAT's Singapore subsidiary admitted to conspiring to commit bank fraud and violating sanctions. BAT acknowledged conducting tobacco business with North Korea between 2007 and 2017, despite publicly stating in 2007 that it would no longer engage in business dealings with authoritarian regimes.
BAT CEO Jack Bowles expressed regret for the improper conduct resulting from these business activities and acknowledged that BAT did not meet the highest standards of correct expectations.
Reportedly, North Korea has faced severe sanctions from the United States and the international community over the past two decades due to its nuclear weapons program and the development of intercontinental ballistic missiles. The US Department of Justice stated that smuggling tobacco products is considered a primary source of income for North Korea's nuclear weapons and weapons of mass destruction programs.
Assistant Attorney General Matthew Olsen said that the fine against British American Tobacco is the largest penalty in the Department of Justice's history for violating sanctions against North Korea.
Also read:
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Industry Lawyer Gives Opinion: BAT Should Stop Policing E-Cigarettes
UKVIA on Overfill Incident: Other Tests Conflicts with BAT's Results
BAT Slams Disposable Vapes After Failing to Acquire Elfbar. A Retaliation?
BAT Confirms Sending Competitor Disposable E-cigarettes for Inspection in the UK
Italian Regulator Investigates BAT's glo Hyper X2 for Advertising Nicotine-free
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