British American Tobacco accused of helping North Korea fund terrorism in lawsuit

"Hundreds of US military service members, civilians and their families have filed a lawsuit for unspecified damages against British American Tobacco (BAT), one of the world's largest tobacco companies, and a subsidiary, claiming the company spent years illicitly helping North Korea fund terrorism weapons that were used against Americans. BAT formed a joint venture in 2001 with a North Korean company to manufacture cigarettes in the country."

"Amid mounting international pressure in 2007, the company claimed it was ending business in North Korea, but secretly continued its operation through a subsidiary, the US justice department said in 2023. BAT's venture in North Korea provided around $418m in banking transactions, generating revenue used to advance North Korea's weapons program, Matthew Olsen, then the justice department official in charge of its national security division, said during a 2023 Senate hearing."

"In 2023, BAT entered into a deferred prosecution agreement and along with the subsidiary, which pleaded guilty, agreed to pay the US $629m in fines for conspiring to violate sanctions and bank fraud. On behalf of BAT, we deeply regret the misconduct arising from historical business activities that led to these settlements, and acknowledge that we fell short of the highest standards rightly expected of us, Jack Bowles, then the company's chief executive, said in a statement at the time."

Hundreds of US military service members, civilians and families filed a lawsuit seeking unspecified damages against British American Tobacco and a subsidiary, alleging the company illicitly helped North Korea fund weapons used against Americans. BAT formed a 2001 joint venture to manufacture cigarettes in North Korea that continued despite US warnings and sanctions. The venture routed about $418 million in banking transactions, generating revenue that the Justice Department said advanced North Korea's weapons program. In 2023 BAT entered a deferred prosecution agreement; its subsidiary pleaded guilty and they agreed to pay the US $629 million in fines.

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