Search Results for: "death spiral"

October 14, 2016

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...

Categories Money Laundering/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
September 13, 2017

Chinese banks are cracking down on N. Korean money laundering again. Will it last this time?

Several news sources are reporting that Chinese banks, particularly in China’s northeast, have started to freeze or close accounts held by North Korean individuals and businesses. The Daily NK, citing unnamed local sources, was the first to report this potentially important development. It says both large state-owned banks (such as the China Construction Bank) and regional banks (such as Pudong Bank) recently banned all North Koreans from opening new accounts and ordered the closure of existing accounts. It also quotes...

Categories Money Laundering/Sanctions
June 30, 2017

Commence Primary Ignition: Treasury zaps the Bank of Dandong for laundering Kim Jong-Un’s money

And so, the “maximum pressure” we’ve been waiting for begins in earnest. Yesterday afternoon, the Treasury Department announced a series of legal actions against Chinese enablers of North Korea’s proliferation, smuggling, and money laundering. First, Treasury’s Office of Foreign Assets Control froze the assets of two businessmen and a shipping company. One of those businessmen, Sun Wei, was the sole shareholder of Mingzheng International Trading, the Chinese company targeted in this recent civil forfeiture action. The shipping company was sanctioned for...

Categories Money Laundering/Sanctions
February 8, 2017

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...

Categories Arms Trafficking/Shipping sanctions
January 9, 2017

Is this what a North Korean malaise speech looks like?

Readers know that I’ve been critical of those who cherry-pick words out of North Korean dictators’ rambling New Year speeches to find evidence to support their arguments. Having made the sacrifice of actually reading this one (full text below the jump), I would not characterize it as profoundly different from the same old crap North Korean dictators have told their subjects year after year. No, it was not quite a North Korean “malaise speech,” but it was filled with clear...

Categories Kim Jong Un
December 6, 2016

Treasury fires a broadside at Kim Jong-un’s slave labor racket

This blog has promoted the outstanding investigative work and legal analysis of the Leiden Asia Center in exposing North Korea’s rental of forced labor to European shipyards and construction companies, under unsafe and exploitative conditions. That work, ably led by Remco Breuker, yielded this Vice documentary and reports filled with actionable information.  Recently, Breuker wrote a long, sad, and funny opinion piece lamenting that LAC’s research has incurred much harassment from Pyongyang’s wacky bands of online sympathizers while having little apparent effect...

Categories Africa/Europe/Human Trafficking
October 18, 2016

In Russia, job holds YOU down (if you’re a North Korean)

For the second time this year, a group of North Korean overseas workers has defected to South Korea — this time, from Russia. KBS, citing anonymous South Korean government sources, first reported that “nearly ten” North Korean construction workers in St. Petersburg fled their dormitory in late August, contacted the local South Korean consulate, and expressed their intention to defect. The workers are now in the care of a human rights NGO pending their departure for the Land of Honey Butter Chips, where I...

Categories Defectors/Human Trafficking/Russia
August 18, 2016

North Korean diplomats behaving badly, Part 2

On balance, I suppose Kim Jong-un probably prefers to see his foreign emissaries expelled than boarding KAL flights to Seoul. Still, since we last took inventory of Pyongyang’s distressed diplomatic corps in March, several more North Korean diplomats have been kicked out and sent home, and His Corpulency is apparently displeased.  Pakistan In 2014, I wrote about North Koreans who were bootlegging alcohol in Muslim countries, quite possibly the only illicit North Korean activity that also provides a useful service to...

Categories NK Crime/Sanctions
August 18, 2016

“Citizens of Pyongyang, my name is Thae Yong-ho.”

When the news broke yesterday that North Korea’s Deputy Ambassador to the United Kingdom, Thae Yong-ho, had defected, many reporters who knew him were astonished. Subject to the confirmation of reports that a North Korean general and several diplomats defected in China recently, Thae would be the highest-ranking diplomat to have defected from the North, and the second-highest official, after Hwang Jang-yop‘s defection in 1997. This is a new low in a bad year for Kim Jong-un. Defections are not...

Categories Defectors
June 9, 2016

A strike by North Korean workers in Kuwait portends a dark fate for them, and for Kim Jong-un.

I first learned that North Korea had exported laborers to Kuwait when I heard that those workers were providing thirsty locals with a valuable public service by brewing black-market moonshine for them. Then, in April, a report emerged that seemed almost too remarkable to be true — 100 North Korean workers in Kuwait had mutinied against their minders to protest the extra work and unpaid wages coincident to the “70-day battle” leading up to North Korea’s party congress in May. (In...

Categories Human Trafficking/Resistance
April 26, 2016

Report: 100 North Korean workers in Kuwait protest unpaid wages

Because North Korea is so uniquely opaque and repressive, it’s often difficult to gauge the level of dissent against, or popular support for, its regime. That repression follows North Koreans when they’re sent abroad to earn money for the regime, usually through the implied threat to punish the workers’ loved ones back in North Korea if they step out of line.  The recent and unprecedented mass defection of 13 restaurant workers from Ningpo, China, is an example of this. In...

Categories Resistance