Singapore firm
guilty of facilitating arms shipment to North Korea
SINGAPORE: Singapore-registered Chinpo Shipping Company on
Monday (Dec 14) was found guilty of facilitating a shipment of arms
to North Korea.
In July 2013, Chinpo had paid Panama shipping agent C B Fenton
and Co US$72,016.76 for the passage of a North Korean vessel Chong
Chon Gang through the Panama Canal.
By doing so, Chinpo had “transferred financial assets or
resources that may reasonably be used to contribute to the
nuclear-related programmes or activities of the Democratic People’s
Republic of Korea”, according to the charge sheet.
This is in breach of United Nations sanctions against North
Korea, due to its nuclear programme.
The Chong Chon Gang was carrying “six trailers associated with
surface-to-air missile systems and 25 shopping containers loaded
with two disassembled aircraft, 15 aircraft engines, components for
surface-to-air missile systems and … ammunition”, all hidden
beneath 10,500 metric tons of sugar.
This is “the largest amount of arms and related materiel
interdicted to or from the DPRK” since the adoption of the UN
resolution which imposes economic and commercial sanctions on DPRK
in 2006.
District Judge Jasvender Kaur noted in her judgement that Chinpo
said the money was “earned from freight and did not belong to it"
so they would make payments to whoever the DPRK entities wanted
them to.
However, Judge Kaur said Chinpo should have conducted due
diligence and “taken some trouble to find out” what the money was
for. They failed to do so, and “this led to it facilitating the
shipment of arms” on the Chong Chon Gang bound for North Korea, the
judge said.
Any person acting in breach of the regulations could face up to
five years’ jail and a fine of up to S$100,000.
Chinpo was also convicted of a second charge, for carrying on a
remittance business without a valid license between April 2009 and
July 2013. Chinpo performed 605 remittances totaling
US$40,138,840.87 on behalf of North Korean entities.
Judge Kaur found that Chinpo did so “to assist the DPRK entities
as they did not have access to the banking system due to UN and US
sanctions”, in violation of the Money-changing and Remittance
Business Act.
For carrying on remittance business without a license, Chinpo
could be fined up to S$100,000.
Sentencing is expected to take place on Jan 29, 2016.
- CNA/vc