An Indonesian paper manufacturer was fined more than $1 million for violating sanctions by selling cigarette papers to North Korea in exchange for U.S. dollar wire payments.

On Thursday, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced that a company called PT Bukit Muria Jaya (BMJ) directed the Chinese intermediary of a North Korean counterpart, Korea Daesong General Trading Corporation, to pay for the cigarette paper in 28 separate wires to BMJ’s U.S.-dollar bank account.

The use of U.S. dollars and thus the U.S. banking system