The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on five individuals and one entity accused of generating illicit revenue for North Korea’s weapons of mass destruction (WMD) and ballistic missile programs. The action targets those involved in selling weapons to Myanmar’s military regime.
“North Korea’s unlawful weapons programs are a direct threat to America and our allies. At Treasury, we will continue to dismantle the financial networks that sustain them,” said Under Secretary for Terrorism and Financial Intelligence John K. Hurley.
The sanctions focus on overseas representatives from North Korean government agencies, specifically the Korea Mining Development Trading Corporation (KOMID) and the Reconnaissance General Bureau (RGB). Both organizations have been previously designated by the United Nations and OFAC. KOMID acts as North Korea’s main arms dealer, exporting equipment for ballistic missiles and conventional weapons, while RGB is responsible for military and intelligence operations.
According to the Treasury, these agencies operate through front companies in various countries to disguise foreign currency earnings that are then sent back to Pyongyang. The latest designations also address a network facilitating arms deals between KOMID and Myanmar’s military regime, which took power after a coup in February 2021. Since then, Myanmar's military has conducted airstrikes affecting civilian infrastructure such as schools, religious sites, and hospitals.
Royal Shune Lei Company Limited, a Burmese arms procurement firm, brokered its first deal with KOMID in 2022. Employees Kyaw Thu Myo Myint and CEO Tin Myo Aung traveled to China for meetings with KOMID representatives to arrange further sales. Royal Shune Lei staff also visited Beijing to secure visas for a Burmese delegation visiting North Korea. Kim Yong Ju, deputy KOMID representative in Beijing, coordinated sales of aerial bomb guidance kits and other equipment for Myanmar's Air Force through Royal Shune Lei.
Royal Shune Lei and Kyaw Thu Myo Myint were sanctioned under Executive Orders 13551 and 14014 for providing support related to arms transactions involving North Korea or operating within Myanmar's defense sector. The company was also sanctioned by Canada and the United Kingdom in October 2024, as well as by the European Union in December 2023.
Tin Myo Aung and Aung Ko Ko Oo were designated under similar orders for acting on behalf of Royal Shune Lei or serving as its leaders or officials during relevant activities.
Kim Yong Ju was sanctioned under Executive Order 13687 for acting on behalf of KOMID.
Nam Chol Ung, an intelligence officer representing North Korea's RGB since at least 2013, was also designated. He is accused of building a network of businesses in Laos and Thailand—including restaurants and a resort—to launder foreign currency earnings for North Korea. His activities include smuggling tobacco products into Southeast Asia through import-export companies.
Following these actions, all property belonging to designated persons within U.S. jurisdiction is blocked and must be reported to OFAC. Entities owned at least 50 percent by one or more blocked persons are also subject to blocking measures. Transactions involving blocked persons are generally prohibited unless authorized by OFAC licenses or exemptions.
Violations may result in civil or criminal penalties against both U.S. citizens and foreigners. Financial institutions risk secondary sanctions if they knowingly facilitate significant transactions on behalf of designated individuals or entities.
OFAC stated that its sanctions aim not only at punishing violators but encouraging positive changes in behavior: “The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior.” Information about removal from OFAC lists can be found on their official website.
