Treasury targets two Chinese shipping firms under North Korea sanctions

Treasury targets two Chinese shipping firms under North Korea sanctions
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The Treasury Department on Thursday targeted two Chinese shipping companies that allegedly helped North Korea evade international trade sanctions.

Treasury’s Office of Foreign Assets Control penalized Dalian Haibo International Freight Co. Ltd. and Liaoning Danxing International Forwarding Co. Ltd. under international sanctions banning trade with North Korea.

The two shipping companies are now banned from the U.S. financial system and can no longer access any U.S.-based assets. Individuals and firms that do business with the companies could also face U.S. penalties.

The U.S. and United Nations have imposed strict sanctions on North Korea, banning the shipping or sale of technology, luxury goods, fuel and military equipment to the country.

Treasury’s action is the latest U.S. effort to penalize China for its long-standing economic support for North Korea, as the Trump administration ramps up pressure on North Korean leader Kim Jong Un to abandon the country's nuclear program.

“The United States and our like-minded partners remain committed to achieving the final, fully verified denuclearization of North Korea and believe that the full implementation of North Korea-related UN Security Council resolutions is crucial to a successful outcome,” said Treasury Secretary Steven MnuchinSteven Terner MnuchinOn The Money: Congress races to beat deadline on shutdown | Trump asks Supreme Court to shield financial records from House Democrats | House passes bill to explicitly ban insider trading Hillicon Valley: Pelosi works to remove legal protections for tech companies from USMCA | Treasury sanctions Russian group over 0 million hack | Facebook sues Chinese individuals for ad fraud | Huawei takes legal action against FCC Mnuchin to lawmakers: 'I'm highly encouraged you will' pass Trump's North America trade deal MORE in a statement Thursday. “Treasury will continue to enforce our sanctions, and we are making it explicitly clear that shipping companies employing deceptive tactics to mask illicit trade with North Korea expose themselves to great risk.”

Dalian Haibo allegedly shipped cargo from China to North Korea on behalf of Paeksol Trading Corporation. Treasury targeted North Korea-based Paeksol under sanctions in 2017 for allegedly funding a North Korean intelligence agency through iron ore sales to China.

Liaoning Danxing is accused of using “deceptive practices” to help North Korean officials based in the European Union purchase goods for Kim's government.