North Korea

Singapore, UN ‘working closely’ after leaked report says local firms traded with North Korea despite sanctions

It alleges two companies from the city state had been supplying luxury goods, including wine and spirits, to the shut-off country

PUBLISHED : Tuesday, 13 March, 2018, 6:01pm
UPDATED : Tuesday, 13 March, 2018, 9:39pm

Singapore said Tuesday it was “working closely” with the United Nations after a leaked draft report said two local firms sold luxury items to North Korea in violation of UN sanctions.

The UN report, cited by the BBC, alleges that the two Singaporean companies and other firms in Asia had been supplying luxury goods, including wine and spirits, to North Korea until as recently as July 2017, despite the sanctions aimed at forcing Pyongyang to abandon its nuclear weapons programme.

Despite an agreement for a meeting between US President Donald Trump and North Korean leader Kim Jong-un, Washington has called on the UN Security Council to maintain sanctions until there is real progress towards scrapping Pyongyang’s nuclear weapons programme.

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“We note the mention of certain Singapore individuals and entities in media reports citing the leaked report from the UN Panel of Experts. Singapore is working closely with the UN Panel on these cases,” the Monetary Authority of Singapore (MAS) said in a statement on Tuesday.

“Where there is credible information of offences committed by individuals or entities under Singapore law, the Singapore authorities will act expeditiously and undertake investigations.”

There was no immediate comment from Singapore’s foreign ministry.

MAS, Singapore’s central bank and financial regulator, did not name the companies which the UN report said appear to have used the city’s financial system to trade with North Korea.

But MAS vowed to take “stern action” on local financial institutions violating the sanctions.

Singapore in November last year suspended all trade ties with North Korea.

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“With the tightening of UN sanctions against the DPRK, MAS has stepped up its supervision of financial institutions to focus on the prohibited DPRK-related activities,” MAS said, using North Korea’s formal name.

“MAS is making a series of on-site supervisory visits to banks that have been identified through intelligence received or through sweeps by MAS of suspicious transactions.”

The central bank said it and other relevant Singapore agencies have been in “close contact” with the UN and other foreign authorities to help enforce the sanctions.