On December 17, 2024, the OFAC sanctioned two individuals and one entity involved in a network that launders millions of dollars of illicit funds generated by the Democratic People’s Republic of Korea (DPRK) information technology (IT) workers and cybercrime to support the DPRK Government. The sanctions are part of OFAC’s ongoing efforts to disrupt the DPRK’s money laundering operations, which finance the regime’s unlawful weapons of mass destruction (WMD) and ballistic missile programs.
According to the Treasury’s press release, the DPRK continues to use agents and proxies to access the international financial system to conduct illicit financial activities, including fraudulent IT work, digital assets heists, and money laundering, in support of its unlawful WMD and ballistic missile programs. The OFAC sanctioned Lu Huaying and Zhang Jian, who worked through a UAE-based front company to facilitate money laundering and cryptocurrency conversion services that funneled the illicit proceeds back to Pyongyang. The OFAC also sanctioned Sim Hyon Sop, a PRC-based banking representative for the DPRK who orchestrates money laundering schemes to fund the regime.
All property and interests of designated individuals in the U.S. or under U.S. control are blocked and must be reported to OFAC, with transactions involving blocked persons prohibited unless authorized by OFAC. In addition, financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action.
Read the Treasury’s press release here.