“BAT Settles North Korea Tobacco Business Cases with US Authorities: Fine Amounting to IDR 9.46 Trillion”

Jakarta –

British American Tobacco (BAT) reached an agreement with the United States Department of Justice (DOJ) and the Office of Foreign Assets Control (OFAC) in settling tobacco business cases in North Korea (North Korea), which occurred between 2007-2017.

BAT has signed a suspended prosecution agreement (DPA) with the DOJ, as well as a civil settlement agreement with OFAC. The fine that must be paid to the United States authorities is US$ 635,241,338 or IDR 9.46 trillion (exchange rate of IDR 14,900) plus interest.

Pursuant to this agreement, BAT cannot provide any comments on the documentation published by the investigative authority, the content therein, or on related factual matters.

“On behalf of BAT, we deeply regret the errors arising from the historical business activities that led to this settlement, and acknowledge that we failed to meet the highest standards expected of us,” said Jack Bowles, Chief Executive of BAT in a statement, quoted Wednesday (26/2010). 4/2023).

“Adhering to strict compliance and ethical standards has been, and remains a top priority for BAT. In recent years we changed our compliance and ethics programs, which include sanctions, anti-bribery, anti-corruption and anti-money laundering,” he added.

Meanwhile, as announced in its Mid-Year Report on 27 July 2022, BAT recognized a provision of US$ 540 million, in accordance with the requirements of International Accounting Standard 37. This case does not affect the company for 2023.

Previously, British American Tobacco (BAT) was proven to have conducted illegal business with North Korea (North Korea) and was fined by US authorities. The tobacco-related business with North Korea is considered illegal because it violates US sanctions.

North Korea has faced stiff US and international sanctions for nearly two decades over its nuclear weapons program and development of intercontinental ballistic missiles. The DOJ maintains that smuggled tobacco products are considered a major source of revenue for North Korea’s nuclear and weapons of mass destruction programs.

BAT, which is one of the world’s largest tobacco companies, filed a suspension of prosecution agreement with the US Department of Justice. Meanwhile, BAT’s subsidiary in Singapore pleaded guilty to conspiring to commit bank fraud and violating sanctions.

BAT itself has several well-known cigarette brands such as Lucky Strike, Kent and Pall Mall. In Indonesia BAT also has a business network. The company is the parent company of PT Bentoel Internasional Investama (RBMA).

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