DOJ Files Complaint for Forfeiture of Funds Used in North Korean Money Laundering Scheme

The DOJ filed a civil complaint for the forfeiture of funds from several "front" companies allegedly involved in a scheme to launder U.S. dollars on behalf of sanctioned North Korean banks.

According to the DOJ, the companies were engaged in procurement and other transactions on behalf of the North Korean regime, in violation of U.S. economic sanctions, the International Emergency Economic Powers Act ("IEEPA"), and federal money laundering and conspiracy statutes.

The DOJ alleged that North Korean banks used the "front" companies to send and receive U.S. dollar payments. OFAC subsequently added at least two of these companies to its Specially Designated Nationals and Blocked Persons List ("SDN List"). The Complaint is for forfeiture in a civil action in rem against a total of $2,372,793.65 of the funds associated with the transactions. The funds were all frozen by U.S. correspondent banks while transiting through the U.S. financial system.