Although I suppose it’s probably a complete coincidence that Treasury finally blocked the assets of four North Korean proliferators in Burma last Friday, I’d like to think it stung a bit when, a few weeks ago, at this conference at the Johns Hopkins School of Advanced International Studies, I said this:
Here’s a link to Treasury’s announcement of the designation of four individual North Koreans, including Pyongyang’s Ambassador to Burma:
HWANG, Su Man (a.k.a. HWANG, Kyong Nam); DOB 06 Apr 1955; nationality Korea, North; Passport 472220033 (Korea, North) (individual) [DPRK2] (Linked To: KOREA MINING DEVELOPMENT TRADING CORPORATION).
KIM, Kwang Hyok, Burma; DOB 20 Apr 1970; nationality Korea, North; Passport 654210025 (Korea, North); Korean Mining Development Trading Corporation Representative in Burma (individual) [DPRK2] (Linked To: KOREA MINING DEVELOPMENT TRADING CORPORATION).
KIM, Sok Chol, Burma; DOB 08 May 1955; nationality Korea, North; Passport 472310082; North Korean Ambassador to Burma (individual) [DPRK2].
RI, Chong Chol (a.k.a. RI, Jong Chol); DOB 12 Apr 1970; Passport 199110092 (Korea, North) expires 17 Mar 2014; alt. Passport 472220503 (Korea, North) expires 06 Jun 2018; alt. Passport 654220197 (Korea, North) expires 07 May 2019 (individual) [DPRK2] (Linked To: KOREA MINING DEVELOPMENT TRADING CORPORATION).
The bracketed “DPRK2” means the designations were under the potentially sweeping but still barely used new Executive Order 13687, which allows Treasury to designate any North Korean government or ruling party official, entity, or enabler. This means Treasury doesn’t have to publish detailed reasons for its designations. According to GAO, this should make the process of designating North Korean entities much easier, although we’ve seen relatively little action from Treasury since the order was signed on January 2nd, shortly after President Obama blamed Pyongyang for the Sony hack and cyberterrorist threat.
Treasury’s announcement doesn’t give a specific reason for the designations, but does say that the targets are linked to the Korea Mining Development Corporation (KOMID), which has been designated for WMD proliferation since the George W. Bush administration. Treasury also designated a North Korean trading company in Egypt.
EKO DEVELOPMENT AND INVESTMENT COMPANY (a.k.a. EKO DEVELOPMENT & INVESTMENT FOOD COMPANY; a.k.a. EKO IMPORT AND EXPORT COMPANY), 35 St. Abd al-Aziz al-Sud, al-Manial, Cairo, Egypt [DPRK2].
According to Yonhap, EKO is “a North Korean government entity located in Egypt,” and was designated “for helping KOMID market North Korean weapons systems to foreign countries.” You can find references to similarly named entities through a Google search.
“Today’s action is designed to counter North Korea’s attempts to circumvent U.S. and United Nations (UN) sanctions, as well as maintain the effectiveness of U.S. sanctions on individuals and entities that are linked to the North Korean Government’s weapons of mass destruction procurement network,” the department said. [Yonhap]
Let’s start by accentuating the positive. The designation of a sitting ambassador represents a notable and long-overdue escalation in Treasury’s designations.
The Ambassador was reportedly paid by the sanctioned DPRK company and arranged meetings on their behalf.
“‘The designation of the DPRK Ambassador to Burma is unprecedented. It is a strong signal to the new Burmese government that the US has persistent concerns about the relationship between North Korea and the country’s military which it expects to be promptly addressed,” Andrea Berger of the Royal United Services Institute (RUSI) told NK News.
“The January EO is much broader in scope and therefore involves a different standard of evidence: it is only necessary to demonstrate that a person is a North Korean official or has materially assisted the North Korean government. There is no doubt that the Ambassador meets these criteria,” Berger added. [NK News, Leo Byrne]
Ordinarily, the Vienna Convention protects the activities of diplomats as inviolable. North Korea’s abuse of these protections, however, is so widely acknowledged that even the U.N. Security Council’s latest North Korea sanctions resolution calls for the “targeting the illicit activities of diplomatic personnel,” expresses concern that Pyongyang “is abusing the privileges and immunities accorded under the Vienna Convention on Diplomatic and Consular Relations,” and calls on member states “to exercise enhanced vigilance over DPRK diplomatic personnel so as to prevent such individuals from contributing to the DPRK’s nuclear or ballistic missile programmes, or other activities prohibited by” U.N. resolutions. By itself, however, the designation of four individuals and one trading company represents a small dent in a global network.
“North Korea’s continued violation of international law and its commitment to the proliferation of ballistic missiles and weapons of mass destruction pose a serious threat to the United States and to global peace and security,” Acting Under Secretary for Terrorism and Financial Intelligence Adam J. Szubin said in the statement.
“Today’s designations underscore our ongoing efforts to obstruct the flow of funds used to augment North Korea’s nuclear capabilities,” he said.
To get an idea of what a serious and sustained sanctions enforcement program would look like, you need look no further than Treasury’s own sanctions search tool, which reveals that there are no less than eleven sanctions programs dedicated exclusively to Iran, compared to two dedicated to North Korea. The number of designations is even more telling. Hold down your “control” key and click “561List” (signifying 31 C.F.R. Part 561), EO13622 (signifying the executive order of the same number), EO13645, FSE-IR, HRIT-IR, IFSR, IRAN, IRAN-HR (human rights), IRAN-TRA (under this statute), IRGC (Iran Revolutionary Guards Council), and ISA. You should get 845 results. Because these programs still exclude designations under other sanctions programs, such as “NPWMD” (for WMD proliferation) and “SDGT” (for terrorism), it’s entirely possible that Treasury has designated more than 1,000 Iranian and Iranian-linked entities, compared to around 90 in North Korea’s case.
An effective sanctions program will require years of sustained and determined effort, and the political will to designate North Korea’s banks, higher-level ministries, senior officials, and third-country enablers. Such an effort begins by requiring all transactions with the North Korean government to be licensed by OFAC, which is one way Treasury can begin to gather financial intelligence on where North Korea’s money is, and how it moves. As of now, however, there’s no such comprehensive requirement. The most optimistic way to view this is as a small but welcome start.