British American Tobacco to Pay Record $635 Million Fine for Illegal Cigarette Sales to North Korea

British American Tobacco subsidiary pleaded guilty to violating U.S. sanctions against North Korea by selling tobacco products to the country from 2007 to 2017
The subsidiary admitted to conspiring to commit bank fraud and agreed to pay over $635 million to the United States, the largest penalty for violating North Korea sanctions in history.
BAT outsourced sales to a third-party Singapore-based company, resulting in over $400 million in illegal transactions passing through the banking system.
North Korean buyers served as a front for the country's totalitarian government, which has used tobacco trafficking as a major source of revenue for its nuclear and weapons programs.
In a deferred prosecution agreement, BAT agreed to pay more than $629 million in fines, while federal prosecutors announced charges against three men for facilitating the cigarette trafficking scheme.