British American Tobacco (BAT) has to pay a $635.2 million fine to U.S. authorities for previous trading activities in North Korea, the British tobacco giant announced on Tuesday.
In 2010, The Financial Times revealed that Pyongyang was re-exporting cigarettes imported by the cigarette maker to earn foreign currency, despite U.S. sanctions against North Korea.
The company said at the time that it had halted exports to North Korea, but the cessation of all business with the country was not effective until September 2017.
The owner of the Lucky Strike and Newport cigarette brands said on Monday that it had reached a settlement with the U.S. Departments of Justice and Treasury, under which it will pay a fine of $635.2 million.
At the time of its half-year results in July, the tobacco giant had already revealed that it had set aside £450 million (€509 million) for this purpose.
“We deeply regret the misconduct arising from historical business activities that led to these settlements,” CEO Jack Bowles said in a statement.
