Search Results for: c4ads

June 13, 2017

C4ADS: Pyongyang’s networks in China are “centralized, limited, and vulnerable” to sanctions 

Because I’ve already given too many minutes of my life to the moveable farce named Dennis Rodman, I’m devoting today’s post to something more consequential: the Center for Advanced Defense Studies’s new report exposing more North Korean financial networks in China, and dispelling the misinformation that North Korea is isolated from the financial system and thus sanctions-proof. (Full disclosure: I advised C4ADS on the drafting of the report, without compensation of course.) Money quote: The continuing misperceptions of North Korea...

Categories China/Money Laundering/Sanctions/Shipping sanctions
January 2, 2022

How Uygur and North Korea human rights activists can join forces to keep slave-made goods out of your closet

How many things do you own that were made by slaves—specifically, enslaved North Koreans or Uygurs? The bad news is that no one knows, because most of the evidence is hidden deep within the supply chains. The good news is that this may be changing just enough to make the use of slave labor unprofitable for the retailers you buy from and the sweatshops in China that employ it. “Royal Blood-Fresh” Chinese manufacturers have a long history of sourcing their...

Categories Activism/Human Trafficking/Kaesong/Sanctions
May 28, 2020

Feds unseal 14-count indictment against 33 agents of sanctioned North Korean bank

The U.S. Attorney’s office for the District of Columbia has done it again. Today, its prosecutors unsealed indictments against 28 North Korean and 5 Chinese representatives of North Korea’s Foreign Trade Bank (FTB) who are or were posted in China, Russia, Libya, Thailand, Kuwait, and Austria. The Treasury Department’s Office of Foreign Asset Control (OFAC) designated the FTB for proliferation financing in 2013. The North Korea Sanctions Regulations later put additional restrictions on dealings with the North Korean financial industry....

Categories Money Laundering/Sanctions/U.S. Law
April 30, 2019

OFK Exclusive: Court orders three Chinese banks to comply with subpoenas for North Korea-related records

There is (or should be) a modern Chinese curse that goes something like this: “May the subpoenas fall like rain on your New York correspondents.” In December 2017, that curse afflicted three Chinese banks that now find themselves enmeshed in an expensive and legally perilous FBI investigation into the laundering of large amounts of Kim Jong-un’s lucre. With today’s unsealing of Chief Judge Beryl Howell’s opinion, ordering the banks to comply with the subpoenas, the story can be told. You...

Categories Money Laundering/Sanctions/U.S. Law
March 25, 2019

How Congress can legislate maximum pressure over Donald Trump’s veto

In 1986, Congress passed the Comprehensive Anti-Apartheid Act by a vote that was overwhelming, if not quite so overwhelming as the margins by which later congresses would pass North Korea sanctions. I still have a vague memory of when President Reagan vetoed anti-Apartheid sanctions and took his plea for “constructive engagement” to the American people, making many of the same arguments that the left would make generations later to support “engagement” with Kim Jong-un. Congress, unpersuaded then as now, overrode...

Categories Sanctions/U.S. Law
November 27, 2018

DOJ sues to forfeit $3M linked to N. Korean money laundering, proliferation financing & slave labor

This afternoon, the U.S. Attorney’s Office for the District of Columbia filed suit to forfeit just over $3 million that three defendants allegedly laundered for an interconnected network of North Korean banks and front companies, in violation of the North Korea Sanctions and Policy Enhancement Act and the International Emergency Economic Powers Act: $599,930.00 in funds “associated with” Cooperating Company 1 of Singapore, which agreed not to contest the forfeiture (and hopefully more), and which used “a bank account in...

Categories Money Laundering/Sanctions/U.S. Law
November 13, 2018

North Korea’s mining industry is collapsing, and steel may be next

OVER THE LAST YEAR, THE BRAVE COVERT CORRESPONDENTS of the Daily NK and Rimjin-gang have reported from inside North Korea on the effects of sanctions on North Korean industry. It’s now clear that those effects have been severe. That’s good news, because North Korea’s mining and steel industries are closely linked to its military and its WMD programs. It’s also terrible news, because a lot of people who depended on those industries are now living through some very hard times....

Categories NK Economics/Sanctions
April 11, 2018

Using the law to break Africa’s addiction to North Korean weapons

When Africa binges on North Korean weapons, it doesn’t just deprive Africa of resources its people need for development; it fuels conflict and human rights abuses by some of the world’s most despotic governments. It also finances and encourages Pyongyang’s militarist reunification drive, and helps it buy more weapons for its generals to point at and terrorize South Korean cities. As with arms purchases by Syria, arms sales to Africa are a major hole in our sanctions that the Trump...

Categories Africa/Arms Trafficking
April 3, 2018

How to build a big, beautiful (financial) wall around North Korea & make Kim Jong-un pay for it.

HERE IN WASHINGTON, THE BLOB IS ALL ATWITTER over a possible summit between Donald Trump and Kim Jong-un. Those who see no solution to this crisis but the next piece of paper took the news with the same mixture of euphoria and dread as a man who waits four hours in the emergency room in throbbing agony, only to hear, “Doctor Oz will see you now.” But in reality, a Trump-Kim summit is no more than 40 percent likely to...

Categories Money Laundering/Sanctions
February 28, 2018

You want maximum pressure? Oh, I’ll show you maximum pressure.

SINCE LAST WEEK, WHEN THE TREASURY DEPARTMENT announced 56 designations of ships, shipping companies, and trading companies, reporters have been emailing me to ask whether this is finally the “maximum pressure” the Trump administration has been talking about. The short answer is “no.” In terms of length alone, yes, this was the largest set of North Korea designations ever, although we should discount for the fact that most of the 28 ships were effectively designated twice (once per ship, and...

Categories Money Laundering/Sanctions/Shipping sanctions
February 2, 2018

Dandong Delenda Est: A little-noticed law may soon raise the pressure on China over N. Korea’s smuggling

IF OUR CHOICES FOR ADDRESSING THE KOREAN MISSILE CRISIS come down to (a) a trade war with China, or (b) a nuclear war with North Korea, which option is worse? If you still believe that begging Kim Jong-un for another piece of paper he doesn’t want and wouldn’t keep is the answer, no amount of evidence will convince you. To accept Pyongyang’s nuclear status in the mistaken belief that conventional means can deter Kim Jong-un’s campaign to gradually blackmail, censor,...

Categories Sanctions/Shipping sanctions
December 5, 2017

So, who else has cut trade with North Korea lately, and who still hasn’t?

With the pace of news of North Korea sanctions news lately, my bookmarks folder is starting to look like what the paramedics found at the Cat Lady’s house after the neighbors noticed a foul odor. Today, I want to catch up with our efforts to deny Pyongyang a haven for its money laundering network, with a focus on Southeast Asia. To review the administration’s progress since January, you may want to start here and here. Ambassador Nikki Haley also gave...

Categories Arms Trafficking/Diplomacy/Sanctions/Southeast Asia
December 1, 2017

Cash & credit squeeze hits China-North Korea trade

One of the more maddening tropes I see in reporters’ coverage is a question that’s usually presented as dispositive to the success of sanctions: “Will China cooperate?” For reasons I’ve already explained and don’t have time to repeat today, I always answer that question by asking what the questioner means by “China.” The point being: yes, it would be nice if Xi Jinping finally came around to the rising risk that Kim Jong-un will bring war, instability, disrepute, and bankruptcy...

Categories China & Korea/Money Laundering/Sanctions
November 27, 2017

Treasury Dep’t hits Sun Sidong, N. Korea’s maritime smuggling & mineral exports

Here at OFK, we’ve chronicled a curious fact that few professional foreign policy scholars have noticed: China is opposed to unilateral sanctions, except when it isn’t. Last week — barely a week after President Trump returned from Beijing — he gave Xi Jinping something to oppose. OFAC designated Dandong Kehua Economy & Trade Co., Ltd., Dandong Xianghe Trading Co., Ltd., and Dandong Hongda Trade Co. Ltd. pursuant to E.O. 13810. Between January 1, 2013 and August 31, 2017, these three...

Categories Arms Trafficking/Money Laundering/Shipping sanctions
November 17, 2017

Singapore’s trade ban with North Korea yields more questions than answers

At first glance, this looks like the State Department’s biggest coup yet in its campaign of progressive diplomacy against Pyongyang. “Singapore will prohibit all commercially traded goods from, or to, the Democratic People’s Republic of Korea (DPRK),” the city-state’s customs said in the notice sent to traders and declaring agents last Tuesday, referring to the country by its official name. The suspension would take effect from Nov. 8, Fauziah A. Sani, head of trade strategy and security for the director-general...

Categories Luxury Goods/Money Laundering/Sanctions/Southeast Asia
November 9, 2017

China cheats on the coal ban again

I still remember my excitement, bordering on giddiness, when in May 2013, a few big banks in China froze some North Korean accounts. That action came two months after the Treasury Department designated North Korea’s Foreign Trade Bank, and just over a week after Ed Royce dropped the first draft of the NKSPEA. But as we’ve learned from our friends in the FBI and the Justice Department since then, big Chinese banks began clearing the FTB’s transactions as soon as...

Categories China & Korea/Sanctions
October 24, 2017

WSJ: Sun Sidong under FBI investigation

Previously, I’ve written about the C4ADS investigation that exposed the Sun Sidong network, and that network’s role in money laundering and arms smuggling for North Korea, most notably the seizure of the Jie Shun arms shipment in Egypt. Shortly after the release of C4ADS’s report, Treasury froze the assets of one of Sun’s companies, Dandong Zhicheng Metallic Materials, and the Justice Department filed a civil forfeiture suit against $4 million of its assets. Now, the Wall Street Journal reports that...

Categories Money Laundering/Sanctions
October 16, 2017

On North Korea sanctions, evidence of an inflection point

As I’ve mentioned previously, this has been a busy month for me, and a difficult one for keeping up with the many developments in North Korea sanctions enforcement. Over the last months, I’ve been keeping a tally of how those efforts are taking shape. The accumulating evidence now gives reason for guarded optimism that at last, the sanctions are starting to show significant effects. Financial. Treasury Undersecretary Sigal Mandelker sent the right message to the financial industry in her recent...

Categories Sanctions