SINGAPORE: A Singaporean oil trader has been sentenced to 12 months and three weeks in jail for violating UN sanctions by unlawfully exporting gas oil to North Korea.
Justin Low Eng Yeow, 56, pleaded guilty on 21 March to three charges under the United Nations (Sanctions – Democratic People’s Republic of Korea) Regulations 2010, according to state media CNA.
His firm, ISA Energy, was also fined S$280,000 after admitting to three charges of directly transferring financial assets for petroleum product purchases that were later sent to North Korea.
Low’s co-accused, ship agent Kwek Kee Seng, 65, is facing 17 charges, including seven related to supplying a prohibited export item to North Korea. He is scheduled for a pre-trial conference on 8 April.
Background of the case
Low initially met Kwek in 2016 while working with a vessel Kwek represented.
In 2018, Low established ISA Energy, a wholesale trading firm, and began supplying petroleum products to Kwek regularly from January 2019.
In April 2019, Low agreed to procure gas oil for one of Kwek’s clients. The deal involved ship-to-ship fuel transfers in the South China Sea. In July 2019, Low and Kwek flew to Taiwan to finalise the agreement.
During investigations, Low admitted he was aware that the fuel was destined for North Korea following the Taiwan meeting. He proceeded with the deal to earn a commission.
Under the arrangement, he purchased the gas oil on Kwek’s instructions, loaded it onto a vessel, and facilitated a series of ship-to-ship transfers before the fuel reached Pyongyang.
Financial transactions and profit
Low paid a total of US$5.57 million to purchase approximately 71,417 barrels of oil over three transactions. He earned US$50,264.73 in total profits from the deals.
The prosecution revealed that Low had supplied around 14.3 per cent of North Korea’s annual gas oil allowance, which is capped at 500,000 barrels under UN sanctions.
Court documents state that Low and ISA Energy each had six additional charges taken into consideration during sentencing.
Legal consequences and maximum penalties
Singapore enforces strict adherence to UN sanctions.
Under the United Nations Act, individuals found guilty of violating sanctions can face up to 10 years in jail, fines, or both. Corporate entities may be fined up to S$1 million per charge.
Low’s sentencing comes amid heightened enforcement of sanctions-related offences.
The US Justice Department previously accused Kwek of aiding illicit fuel shipments to Pyongyang.
On 3 November 2022, the US State Department announced a US$5 million reward for information leading to Kwek, who owns Singapore-based Swanseas Port Services.
Previous cases of Singapore firms violating sanctions
This case follows other instances of Singapore-based individuals and companies breaching UN sanctions on North Korea.
In December 2022, Phua Sze Hee was sentenced to five weeks in jail for exporting nearly US$1 million worth of strawberry milk and coffee to North Korea between 2017 and 2018.
Although he did not earn commissions from the transactions, they helped him meet sales targets.
In May 2022, Singaporean companies 123 Holdings and 123 Duty-Free were charged for supplying alcoholic and non-alcoholic beverages worth over S$720,000 to North Korea between November 2016 and August 2018.
The exported goods included Chivas Regal whisky, Johnnie Walker Black Label, and various wines.
Singapore’s enforcement of UN sanctions
Singapore suspended trade ties with North Korea in 2017 as part of broader international efforts to curb Pyongyang’s nuclear weapons and ballistic missile programme.
The United Nations and several countries have imposed strict sanctions on North Korea to restrict its economic activities and deter further weapons development.
By strictly enforcing these sanctions, Singapore aims to prevent any economic support that could contribute to North Korea’s prohibited activities.
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