US Judge Dismisses BAT's Criminal Case Over North Korea Sanctions Violations

• •U.S. judge dismissed BAT's criminal case for sanctions violations against North Korea.
• •BAT paid $630 million and enhanced compliance procedures as part of a deferred prosecution agreement.
• •The case involved illegal tobacco sales from 2007 to 2017 through a third-party company.

On May 11, 2026, a U.S. judge dismissed the criminal case against British American Tobacco (BAT) for violating sanctions by selling cigarettes to North Korea. The dismissal followed BAT's compliance with a three-year deferred prosecution agreement, which included enhancing compliance procedures and paying $630 million in penalties. The illegal sales occurred between 2007 and 2017, despite BAT's claims of abandoning North Korean tobacco sales after spinning off its business. A subsidiary, BAT Marketing Singapore, had pleaded guilty to conspiracy charges. The case marked the largest penalty imposed by the U.S. Justice Department for sanctions violations against North Korea. The dismissal was granted by U.S. District Judge Beryl Howell, as the Justice Department acknowledged BAT's compliance with the agreement.