Chinese shipping companies penalized for violating North Korea sanctions

March 21 (UPI) -- The U.S. Treasury Department designated two Chinese shipping companies for penalties after allegedly helping North Korea evade international trade sanctions.

The Treasury's Office of Foreign Assets Control penalized Dalian Haibo International Freight Co. Ltd. and Liaoning Danxing International Forwarding Co. Ltd. under international sanctions banning trade with North Korea, the Treasury announced Thursday.

Under the penalties, the two shipping companies will be blocked from engaging with the U.S. financial system or with any assets based in the United States. U.S. businesses are also prohibited from working with them in the future.

"The United States and our like-minded partners remain committed to achieving the final, fully verified denuclearization of North Korea and believe that the full implementation of North Korea-related UN Security Council resolutions is crucial to a successful outcome," Treasury Secretary Steven Mnuchin said. "Treasury will continue to enforce our sanctions, and we are making it explicitly clear that shipping companies employing deceptive tactics to mask illicit trade with North Korea expose themselves to great risk."

Dalian Haibo is accused of shipping cargo to North Korea to or in support of Paeksol Trading Corporation. The Treasury Department previously designated Paeksol for having sold, supplied, transferred, or purchased metal or coal from North Korea.

Liaoning Danxing allegedly used "deceptive practices" to help North Korean officials based in the European Union purchase goods for North Korean leader Kim Jong Un's government.