Tobacco giant admits selling products to North Korea, agrees to pay more than $600 million

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Tobacco giant admits selling products to North Korea, agrees to pay more than $600 million
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British American Tobacco P.L.C. is one of the largest sellers of tobacco products in the world.

— A subsidiary of a 100-year-old tobacco company based in London pleaded guilty to selling and manufacturing products in North Korea in violation of U.S. sanctions and bank secrecy laws, according to court documents and press statements released Tuesday.

Assistant Attorney General Matt Olsen, who oversees the Justice Department's National Security Division, said the action is the single largest North Korean sanctions-related case in U.S. history. To perpetuate the scheme, the companies admitted to creating a network of front companies and financial institutions across the globe, funneling goods and supplies into North Korea while pushing money out.

Another accused BAT of creating the appearance of"distance" from its North Korean business partner while simultaneously working to profit from it.

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