U.N. report identifies Winson Group as ‘key node’ of DPRK fuel procurement activities

A U.N. Security Council report published on 8 September alleges Singapore-based Winson Group, a firm engaged primarily in international wholesale oil trading and high-seas bunkering, to be a “key node” in the illicit fuel procurement activities of the Democratic People’s Republic of Korea (DPRK).

The Panel, based on a recent report and subsequent media articles, initiated an enquiry into transactions related to the sale of gasoil and the subsequent ship-to-ship (STS) transfer between the then Nauru-flagged Super Star (IMO No. 9085388) and the unknown-flagged Diamond 8 (IMO No. 9132612) on or around 1 May 2020 (UTC) and again on or around 14 June 2020 (UTC) in apparent violation of resolution 2397 (2017) and paragraph 18 of resolution 2375 (2017).

In April 2021, the Panel requested financial records and trade documentation regarding the activities of the Winson Group related to, inter alia, the Super Star and Diamond 8. The Panel also asked for clarification as to the due diligence processes and procedures of the Winson Group to mitigate sanctions evasion risks. In its reply to the Panel, the Winson Group noted its commitment to sanctions compliance and provided a summary of its due diligence procedures, which the company put into place in 2018.

In explaining the ship-to-ship transfers between the Super Star and Diamond 8, the Winson Group stated that its wholesale customer, Sino Global Trade Co. Ltd (formerly Super Gold Holdings Inc., hereafter “Sino Global”) time-chartered the Super Star from a Winson entity, Golden Shelter Limited. Sino Global then nominated the Super Star to take delivery of gasoil from Winson Oil (Wholesale) Pte Ltd, on a free-on-board basis. Sino Global went on to sell portions of this gasoil to a company named “Zfullboto Co. Ltd” (中盛博通有限公司), which nominated the Diamond 8 to Sino Global to take delivery via ship-to-ship transfer with the Super Star.

Winson representatives also reported to the Panel that the Group had conducted due diligence screenings on Sino Global, finding that its sole shareholder and director was Mr. Chien Chih-wei (簡志瑋) and that the company was not listed on any designated entities lists. The contracts for gasoil between Winson and Sino Global specifically note: “The product of this contract will not be sold to North Korea or any North Korean entity or any other sanctioned countries.” According to a senior Winson Group corporate officer, “Winson was not involved in the sale of cargoes from Sino Global to Zfullboto, and/or Zfullboto’s nomination of DIAMOND 8 to Sino Global” and an individual named “Ivy” was the operator for Zfullboto.

However, information obtained by the Panel shows that Mr. Chien Chi-wei used the address No. 150 Cheng’ai Road, Fengshan District, Kaohsiung, Taiwan Province of China, to register Sino Global. This is the same address used by a senior Winson Group employee for an IMO application for the vessel An Ping (IMO No. 7903366),113 which listed the ship’s owner as Spring Gain International Limited. The same employee also used a Winson Group email on the application, alongside a phone and fax number linked to Winson Shipping (Taiwan) Co., Ltd.

A review of social media records suggests that the aforementioned employee and Mr. Chien are closely related. Furthermore, social media records obtained by the Panel show that Mr. Chien maintains close relationships with several individuals who occupy senior positions at Winson Shipping (Taiwan) Co., Ltd., Jiu Li Shuen Trading and Taishun Trading. Given these substantive links, the Panel is continuing to investigate the Winson Group and its subsidiaries, as well as the owners and operators of Zfullboto.

Editor’s note: The full U.N. Security Council report entitled “Midterm report of the Panel of Experts submitted pursuant to resolution 2569 (2021)” can be downloaded from the official website here.

Photo credit: Ilyass SEDDOUG from Unsplash
Published: 6 October, 2021