OFAC blocks “Shang Yuan Bao” over STS transfers with DPRK vessels

Legal

Published Mon, 2nd September 2019
by Admin

Taiwan and Hong Kong shipping companies added to blacklist over sanctioned activities performed in 2018.

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) on Friday (30 August) designated two individuals and three entities, and further identified one vessel as blocked property over illicit ship-to-ship (STS) transfers with North Korean vessels.

OFAC designated Taiwan-based individuals Huang Wang Ken and Chen Mei Hsiang and the Taiwan-based entities Jui Pang Shipping Co Ltd (Jui Pang) and Jui Zong Ship Management Co Ltd (Jui Zong), as well as Hong Kong-based entity Jui Cheng Shipping Company Limited (Jui Cheng), pursuant to Executive Order (E.O.) 13810 for having engaged in at least one significant importation from or exportation to North Korea of any goods, services, or technology.

In addition, OFAC identified the vessel Shang Yuan Bao (IMO: 8126070) as blocked property in which Huang Wang Ken, Chen Mei Hsiang, Jui Pang, Jui Cheng, and Jui Zong all have an interest.

In October 2018, the UN Security Council’s 1718 Committee included the Shang Yuan Bao in a port entry ban and designated it for deflagging in response to its involvement in illicit ship-to-ship transfers with DPRK-flagged vessels.

Shang Yuan Bao conducted at least two STS transfers with DPRK-flagged vessels, which both later offloaded their cargo in North Korea’s Nampo port in 2018, according to OFAC.

Between April and May 2018, Huang Wang Ken, the CEO and largest shareholder in Jui Pang, a Taiwan marine cargo handling company, worked with several other individuals to use the Panama-flagged vessel Shang Yuan Bao to transport 1.7 million liters of petroleum products to the UN- and U.S.-designated North Korea-flagged vessel Paek Ma through an STS transfer.

Huang and his partners falsely reported that the petroleum products were destined for the Philippines.

The Shang Yuan Bao, however, transported them beyond the territorial waters of any state to carry out the STS transfer to the Paek Ma, which was identified February 23, 2018 as property in which Paekma Shipping Co — an entity whose property and interests in property were blocked pursuant to E.O. 13810 also on February 23, 2018 — has an interest.

In June 2018, the Shang Yuan Bao carried out an additional STS transfer of petroleum with another North Korea-flagged vessel, the Myong Ryu 1.

“OFAC assesses that the persons who owned and controlled the Shang Yuan Bao at the time of the petroleum transfers are ultimately responsible for the petroleum products that were illicitly transferred to the North Korean vessels and ultimately delivered to North Korean territory,” it states.

“This includes Chen Mei Hsiang, who is a member of the board of directors of Jui Pang as well as the director and sole owner of Jui Zong. Chen Mei Hsiang is also married to Huang Wang Ken.

“OFAC also designated Taiwan companies Jui Pang and Jui Zong, as well as Hong Kong company Jui Cheng, for engaging in a significant importation from or exportation to North Korea through their ownership and control of the Shang Yuan Bao when it engaged in these STS transfers.

“As a result of today’s action, all property and interests in property of these individuals and entities that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC.

“OFAC’s regulations generally prohibit all dealings by U.S. persons or within the United States (including transactions transiting the United States) that involve any property or interests in property of blocked or designated persons.”

Earlier OFAC related alerts issued in 2019 are as follows:

Photo credit: MarineTraffic
Published: 2 September, 2019

OFAC blocks “Shang Yuan Bao” over STS transfers with DPRK vessels

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