Tuesday, February 12, 2019

Case of the Day: United States v. 1,071,251.44 of Funds Associated with Mingzheng Int'l Trading, 2018 U.S. Dist. LEXIS 138071 (D.D.C. June 29, 2018)

Summary:

The Department of Justice filed the in rem forfeiture action against certain funds associated with Mingzheng International Trading, which is alleged to be a front company that North Korea's Foreign Trade Bank used in Shenyang, China to launder money. With the laundered money, Mingzheng allegedly entered into a number of illegal transactions with other sanctioned entities, including the Chinese telecom company ZTE.

The magistrate judge recommended the default judgment be granted and forfeiture authorized.

Takeaway:

As we are entering the age of tensions with China and North Korea, doing law with Asian parties increasingly means being familiar with sanctions scheme and the consequences of violating sanctions.

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