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The Guardian - US
The Guardian - US
Business
Sam Levine in New York

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

a pile of cigarette boxes
A pack of British American Tobacco Lucky Strike cigarettes seen in a tobacco store on 13 February 2019. Photograph: SOPA Images/LightRocket/Getty Images

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. The venture quietly continued, a 2005 Guardian investigation revealed, even as the US government publicly warned North Korea was funding terrorism and imposed sanctions on 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 about $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.

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