Both the UN as well as Singapore prohibit the sale of luxury goods to the communist state, and Singapore's government said it has started investigations into this case.
The two companies — OCN and T Specialist — share the same director, and have said they have done nothing wrong, according to BBC.
The leaked draft report allegedly said that $2 million worth of sales proceeds have moved from both companies' bank account in North Korea to T Specialist's accounts in Singapore.
The UN has also accused the two companies of having "longstanding, close ties" with Ryugyong Commercial Bank, which has been on the U.S sanctions list since September 26 last year, the BBC report said.
The lawyer for both companies, Edmond Pereira, has denied that they have any current financial relationship or other business ties with anyone in North Korea, except for those that took place before UN sanctions came into effect, according to BBC.