OFAC Warns Companies about Employing Unlawful North Korean IT Workers

OFAC warned against attempts by North Korea ("DPRK") to employ IT workers throughout North America, Europe and East Asia in order to generate revenue for the country's illicit activities in violation of U.S. and UN sanctions. OFAC warned that "individuals and entities engaged in or supporting DPRK IT worker-related activity, including processing related financial transactions, should be aware of the potential legal consequences of engaging in prohibited or sanctionable conduct."

In published guidance, OFAC encouraged the international community, the private sector and the general public to be aware of attempts by DPRK IT workers, many of whom pose as U.S.-based or non-DPRK telworkers, to seek employment in order to generate revenue used to support the country's weapons of mass destruction and ballistic missile programs or help carry out cyberattacks. OFAC stated that the IT workers take advantage of existing demand for specific IT skills to obtain freelance employment and obfuscate their identities to avoid detection.

OFAC identified several entities that have been known to dispatch DPRK IT workers and provided detailed information on (i) how DPRK IT workers operate, (ii) how companies hiring freelance workers can identify red flags and (iii) general mitigation measures companies can take to prevent inadvertently hiring DPRK IT workers.