A leaked draft of a United Nations report claims two Singapore companies have violated UN sanctions by supplying luxury goods to North Korea.

The two firms under investigation – OCN and T Specialist – are sister companies and share the same director, BBC said.

The UN report alleges the two firms supplied a range of luxury goods to North Korea, including wines and spirits, until as recently as July 2017.

The UN report added that “transactions valued at more than US$2 million (S$2.62 million)” between 2011 and 2014 flowed from an account that the two companies set up in a North Korean bank, Daedong Credit Bank, to T Specialist’s bank accounts in Singapore. The transactions were allegedly proceeds from the sale of goods in North Korea, BBC said.

Under UN Sanctions, it has been illegal to sell luxury items to North Korea since 2006. And Singapore’s laws have banned the sale of these items to North Korea for several years.