Treasury blacklists Singapore shipping company over alleged North Korean arms smuggling

Senat Shipping claimed no wrongdoing or illegal activity on its part, and said the Treasury Departments action is a “misguided measure purely based on Senat’s historical dealings with OMM,” according to a report from Reuters.    The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) last week sanctioned Singapore-based Senat Shipping for the company’s alleged involvement with a North Korean firm that was caught smuggling illegal weapons in 2013.
   The containership Chong Chon Gang, operated by North Korean Ocean Maritime Management Company (OMMC), was seized by Panamanian authorities for carrying a shipment of undeclared arms from Cuba under a load of sugar.
   In a statement from the department, OFAC claimed Senat arranged for the purchase, repair, certification, and crewing of marine vessels for OMMC. The sanctions also target Senat President Leonard Lai and a vessel belonging to the company.
   “The individual and the company designated today are linked to Ocean Maritime Management Company (OMMC), a North Korean shipping company that OFAC had previously designated,” said OFAC. “Today’s designations were made pursuant to Executive Order (E.O.) 13551, which blocks the property of persons who, among other things, have attempted to import arms or related material into the DPRK or have provided support for such activities or to other persons designated under this E.O.”
   OFAC also added aliases of OMMC to its list of blocked companies, adding that the company had continued to operate through a series of dummy corporations and fronts despite previous sanctions from the U.S. and the United Nations.
   “Arms shipments transported by OMMC serve as a key resource for North Korea’s ongoing proliferation activities,” said Acting Under Secretary for Terrorism and Financial Intelligence Adam J. Szubin. “Sales from these shipments contribute to North Korea’s other illicit programs. We are working to make it as challenging as possible for North Korea to continue its unlawful behavior by actively targeting anyone or any business that supports these illicit arms transfers.”
   According to reports from news outlet Reuters, Senat Shipping Friday denied any illegal activities, and said it had already reached out to the Singaporean government in an attempt to clear its name.
   Senat admitted it had commercial dealings with North Korea and had chartered the Chong Chon Gang before the ship was seized, but said it stopped all dealings with North Korean ship owners after the arrest. Further, the company argued it was not the charterer of the vessel at the time of its arrest, comparing the case with being held accountable for the illegal activities of the owner of a hired car.
   “The US Treasury’s move to put Senat and Leonard Lai on the OFAC (Office of Foreign Assets Control) list is a misguided measure purely based on Senat’s historical dealings with OMM,” the company said in a statement e-mailed to Reuters.