US Issues New Sanctions And Advisory On Sanctions Risks Related To North Korea's Shipping Practices

On February 23, 2018, the US Government issued new sanctions and an extensive advisory targeting North Korea's shipping practices.

First, under authority of two North Korea-related Executive Orders, the US Treasury's Office of Foreign Assets Control (OFAC) placed twenty-seven (27) entities and twenty-eight (28) vessels on the US list of Specially Designated Nationals (SDNs).

Second, OFAC, along with the State Department and  Coast Guard, issued an advisory on "Sanctions Risks Related to North Korea's Shipping Practices" (the Advisory), alerting "persons globally to deceptive shipping practices used by North Korea to evade sanctions".  The Advisory notes that North Korea's deceptive practices "may create significant risk for parties involved in the shipping industry, including insurers, flag registries, shipping companies, and financial institutions."