Essentra FZE, a UAE-based global supplier of cigarette products, will pay a $665,112 fine and enter into a deferred prosecution agreement with the US Department of Justice for its involvement in violating the International Emergency Economic Powers Act (IEEPA) and defrauding the US over violation of US sanctions on North Korea.
US sanctions prevented US-based correspondent banks and overseas branches of US banks from processing transactions for North Korean customers. However, in 2017-18, Essentra FZE deceived US and UAE banks into processing transactions for a North Korean tobacco company. The scheme involved the use of incorrect shipping documents and front companies to conceal the North Korean link.
As Essentra FZE entered into an agreement with the Justice Department, it took the responsibility for its criminal conduct. It also agreed to implement stringent internal controls.