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Companies in Asia have been supplying luxury goods to North Korea despite sanctions: Report

  • Two Singapore companies and others in Asia have been supplying luxury goods to North Korea, according to a leaked draft of a United Nations report, the BBC reported on Tuesday.
  • The leaked draft report allegedly said that $2 million worth of sales proceeds have moved from both companies' bank account in North Korea to Singapore.
  • Their lawyer denied they have current ties with any entity in North Korea.
Members of the United Nations Security Council vote to impose new sanctions on North Korea on December 22, 2017.
Spencer Platt | Getty Images
Members of the United Nations Security Council vote to impose new sanctions on North Korea on December 22, 2017.

Two Singapore companies and others in Asia have been supplying luxury goods to North Korea hence violating sanctions, according to a leaked United Nations draft report, the BBC reported on Tuesday.

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.

Read the BBC for more on the leaked UN report.