Tobacco giant to pay over $600 million for violating North Korea sanctions

WASHINGTON: British American Tobacco has agreed to pay more than $600 million to settle allegations that it violated US sanctions on North Korea, the US Justice Department announced on Tuesday.

“British American Tobacco and its subsidiary engaged in an elaborate scheme to circumvent US sanctions and sell tobacco products to North Korea through a corporate cutout in Singapore,” said Assistant Attorney General Matthew Olsen.

“This is the single largest North Korean sanctions penalty in the history of the Department of Justice, and the latest warning to companies everywhere about the costs and the consequences of violating US sanctions,” said Olsen. The Justice Department put the full figure at $629 million; BAT said it was $635 million, without explaining the difference.