Search Results for: Treasury Justice

Sens. Gardner & Markey call on Trump administration to enforce North Korea sanctions law

Here’s the kind of story you hear too seldom in Washington today: A conservative Republican (Cory Gardner of Colorado) has joined forces with a liberal Democrat (Ed Markey of Massachusetts) to write a letter to the new secretaries of State and Treasury, asking them to fully enforce the North Korea Sanctions and Policy Enhancement Act (NKSPEA), which passed Congress with the overwhelming support of both parties last year. (Even Bernie Sanders would have voted for it had he not been campaigning...

UN report shows China, others are still havens for North Korean money laundering

Due to a convergence of other commitments, it took me longer than I’d hoped to digest the U.N. Panel of Experts‘s latest findings about North Korea and financial sanctions. If you only read the bottom line and stop there, you’ll either be discouraged or find support for an argument that sanctions are futile. 210. Despite expanded financial sanctions adopted by the Security Council in resolutions 2270 (2016) and 2321 (2016), the Democratic People’s Republic of Korea has continued to access...

WSJ: Feds may indict North Koreans in Bangladesh Bank fraud

This story just gets more interesting by the day: Federal prosecutors are building cases that would accuse North Korea of directing one of the biggest bank robberies of modern times, the theft of $81 million from Bangladesh’s account at the Federal Reserve Bank of New York last year, according to people familiar with the matter. The charges, if filed, would target alleged Chinese middlemen who prosecutors believe helped North Korea orchestrate the theft, the people said. The current cases being pursued...

N. Korea, Lazarus & SWIFT: Are the white hats closing in? (Update: SWIFT cuts off remaining N. Korean banks)

In the last month, major news stories about North Korea have bombarded my batting cage faster than I’ve been able to swing at them. I’d wondered when I’d have a chance to cover Katy Burne’s detailed story in the Wall Street Journal about the empty half of the SWIFT glass – that despite its recent decision to disconnect three U.N.-designated North Korean banks, it’s still messaging for banks that are sanctioned by the Treasury Department, but not by the U.N.:...

Trump admin leaning toward tougher sanctions & (maybe) “covert actions”

For weeks, we’ve heard that the Trump administration was expected to complete a top-to-bottom review of North Korea policy by the end of this month. Barely into the second week, Reuters is already giving us a peek at where the review is headed. Skim past the mandatory all-options-are-on-the-table disclaimer and “senior U.S. officials” say this: They added a consensus was forming around relying for now on increased economic and diplomatic pressure – especially by pressing China to do more to...

China is waging economic war against S. Korea. We must stand by our ally.

Less than two years ago, I wrote of the coming Korea missile crisis. That crisis has now arrived. As I’ve documented at this site, that crisis is, in large part, a crisis of China’s making. North Korean missiles are made in part from Chinese technology, in large part from components purchased in or smuggled through China, and that are almost always procured by North Korean agents who operate more-or-less openly on Chinese soil. North Korea’s missiles ride on Chinese trucks....

U.N. report: SWIFT banking network violated North Korea asset freeze

Since last year, this blog has covered SWIFT’s continued provision of financial messaging services to North Korean banks, despite suspicions that North Korea was involved in stealing almost $100 million from the Bangladesh Bank by hacking into SWIFT’s messaging software. Later, I wrote about an effort in the last Congress to ban North Korean banks from SWIFT, mirroring a sanction that was one of our most effective measures against Iran. SWIFT is effectively the postal service of the financial system,...

Malaysia’s lax enforcement of North Korea sanctions has finally come home

Over the weekend, Malaysian authorities painstakingly decontaminated a terminal of the Kuala Lumpur International Airport where North Korean agents – including a diplomat – carried out a lethal attack with the nerve agent VX, a substance so deadly that a tiny droplet can kill an adult. The authorities are clearly concerned that the use of a persistent chemical weapon of mass destruction in a crowded airport terminal will cause panic among Malaysian citizens and members of the traveling public, as...

Dear New York Times: This is why your North Korea reporting stinks

I often say that the New York Times consistently has the worst North Korea coverage of any major U.S. newspaper. Next time someone asks me why that is, I suppose I’ll point them to this story by Jane Perlez, Choe Sang-hun and Motoko Rich, which could be the exemplar of everything that’s wrong with it in a single hyperlink. It was forwarded to me by an experienced journalist who writes for another major newspaper, and who probably wouldn’t want me to...

Leaked U.N. report reveals record seizure of North Korean arms last August (updated)

The 2017 report of the U.N. Panel of Experts isn’t due to be published for another month, but a Kyodo News reporter has already obtained and published leaked excerpts. The focus of Kyodo’s story is the now-familiar (and unquestionably accurate) castigation of member state governments for not putting enough will or resources into the enforcement of North Korea sanctions, but I’d like to start with this revelation: “An interdiction of the vessel Jie Shun was the largest seizure of ammunition...

Why North Korea will go back on the list of state sponsors of terrorism this year

As I write, Yonhap is reporting that North Korea may be fueling up two ICBMs for a test. Meanwhile, in Washington, Texas Republican Ted Poe has already shaped one part of the likely response to that. Poe isn’t one to back down from a fight — not with leukemia, and not with North Korea. He’s back at the helm of the House Subcommittee on Terrorism, Nonproliferation, and Trade, where one of his first acts this year was to reintroduce a...

For North Korean banks, 2016 has been like that Corleone baptism montage

Years from today, North Korean bankers will remember 2016 as their annus horribilis. In February, a month after the North’s fourth nuclear test, Congress passed, and the President signed, the North Korea Sanctions and Policy Enhancement Act. Section 201 of the new law all but compelled the Treasury Department to designate North Korea a Primary Money Laundering Concern under section 311 of the Patriot Act. Section 311 allows for a menu of special measures to protect the financial system against...

China breaks N. Korea sanctions it says won’t work because it’s afraid they’ll work

In yesterday’s post, I linked to reports suggesting that China’s failure to agree on the terms of a new U.N. sanctions resolution responding to North Korea’s latest nuclear test may be motivated by a desire to wait out the end of President Obama’s administration. This theory would only make sense if China figures it can get better terms from President Trump next year, but my post pointed to evidence of the opposite of this — that what we know so...

North Korea Sanctions & Policy Enhancement Act FAQ

What does the NKSPEA do? The North Korea Sanctions and Policy Enhancement Act, or NKSPEA, was signed into law by President Obama in February 2016, after North Korea’s fourth nuclear test. The NKSPEA uses targeted financial and economic sanctions to isolate Kim Jong Un and his top officials from the assets they maintain in foreign banks, and from the hard currency that sustains their rule. These assets are derived in part from illicit activities and proliferation, and are used to...

Understanding North Korea sanctions: Background

Introduction Background Here are the Treasury Department’s FAQs and overview of North Korea sanctions, as of 2016. U.S. and U.N. sanctions against North Korea are relatively strong on paper today, but implementation of the new authorities has been uneven, and has only just begun. Although there is much more that we can do to close sanctions loopholes, the most important priority now is to enforce the U.N. and U.S. sanctions that already exist, through a combination of law enforcement and diplomacy. North Korea...

Understanding North Korea sanctions: An explainer, links & authorities

Introduction: Why I created this page Background Until February of 2016, U.N. sanctions against North Korea were strong on paper but poorly enforced, and U.S. sanctions against North Korea were (contrary to the assumptions of many journalists and academics) comparatively weak — weaker than our sanctions against Belarus and Zimbabwe. Sanctions against North Korea strengthened considerably in 2016 with the passage in February of the North Korea Sanctions and Policy Enhancement Act, and the U.N. Security Council’s approval of Resolution...

North Korea, secondary sanctions, tertiary impacts, and the coming death spiral

As I write today, rumors are swirling through the South Korean media of defections and purges involving so many North Korean diplomats, spies, minders, workers, and other officials that I haven’t had the time to either keep up with them or sort out the conflicts in those reports. I’ll try to do that by this time next week, and identify any patterns I see in them. In the meantime, an intriguing story by the Daily NK elucidates how well-targeted sanctions can drive disloyalties and fissures...

The Senate does North Korea oversight right; also, sell your Bank of China stock now

It took a few weeks for the Senate Foreign Relations Committee’s Asia Subcommittee to put a hearing together after North Korea’s fifth nuclear test, but when that hearing finally happened on Wednesday, I actually found myself feeling sorry for the State Department witnesses, Danny Russel, the Assistant Secretary Of State at the Bureau Of East Asian And Pacific Affairs, and Daniel Fried, the State Department’s Coordinator for Sanctions Policy. A few years ago, they might have gotten away with showing up unprepared,...