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Category: Money Laundering

October 1, 2013

I can’t wait to read this one: “Treasury’s War,” by Juan Zarate

I wonder if Amazon can deliver this while I still have an unexpected windfall of leisure time: Zarate, a senior adviser at the Center for Strategic and International Studies, plays the role of the bureaucrat. He joined the Treasury Department just weeks before the 2001 attacks to aid the agency’s enforcement wing. [….] Treasury launched its most ambitious assault with this new weapon on a tiny bank in Macau. That bank, Banco Delta Asia (BDA), caught the department’s attention in...

Categories Books & Films/Money Laundering/Sanctions
September 21, 2013

Kaesong investors beware: Treasury issues new warning about N. Korea money laundering risk

Precisely what North Koreans do with earnings from Kaesong, I think, is something that we are concerned about.” – David Cohen, Undersecretary of the Treasury for Terrorism and Financial Intelligence Just as Kaesong begins the process of reopening, and as the South Korean government seeks to “internationalize” investment there, the Treasury Department has issued a new warning about money laundering risks emanating from North Korea. The warning echoes longstanding concerns by the global Financial Action Task Force. Every potential investor in...

Categories Money Laundering/North-South/Sanctions/Sunshine
August 21, 2013

North Korea’s “charm offensive” coincides with growing international financial pressure

Observers in the West and South Korea tend to grasp (even gasp) at subtle or superficial changes in the tone of North Korea’s words, but the consistency of North Korea’s actions has always refuted the interpretations of these observers.  No charm offensive ever interrupted Pyongyang’s pursuit of nuclear weapons or its willingness to proliferate nuclear or chemical weapons technology.  Even its provocations, often described as “unpredictable,” follow a cycle that has become familiar to Korea-watchers, including the President of South Korea....

Categories Anju Links/Money Laundering/Sanctions
March 20, 2013

Follow the money. All of it.

Marcus Noland has published two fascinating charts on recent changes in North Korea’s palace economy. According to one, North Korea has begun posting a current account surplus by squeezing its poor, and by taking in foreign exchange from mysterious (but probably Chinese) sources.  That would certainly explain some of its recent, more aggressive behavior — a well-funded North Korea is menacing; an underfunded North Korea is relatively, if temporarily, conciliatory.  Judging by North Korea’s aggressive WMD development and investment in white elephants (gray...

Categories Money Laundering/Sanctions
March 19, 2013

Open Sources, March 17, 2013: Plan B Watch Edition

WHACK-A-MOLE:  The news that Treasury has designated North Korea’s Foreign Trade Bank under Executive Order 13382 leaves me underwhelmed.  This executive order provides for the blocking of assets of entities involved in the proliferation of weapons of mass destruction, and restricts transactions with those entities, assuming we can reach them.  I’m dubious about how many assets or transactions are within our reach, but the pin-pricky targeting suggests that this approach is far less comprehensive than what’s needed to defang North Korea....

Categories Anju Links/Money Laundering/Sanctions
February 23, 2013

Plan B Watch

Via the Chosun Ilbo, and according to “a diplomatic source:” The U.S. government is considering labeling North Korea as a money-laundering state to pave the way for sanctions after Pyongyang’s latest nuclear test.  [….] Article 311 of the Patriot Act was created following the Sept. 11, 2001 attacks and authorizes the U.S. Commerce Department to identify an individual, financial institution or state as a “primary money-laundering concern.” This would ban the target from transacting business with any system that handles...

Categories Money Laundering/Sanctions
February 19, 2013

How North Korea evades international financial sanctions

There is no such thing as a perfect plan, and the idea of pressuring North Korea through international financial sanctions is no exception. Like money launderers everywhere, the North Koreans have adapted to get around anti-money laundering controls. Reuters has an excellent, must-read report on North Korea’s use of bulk cash transactions to avoid the scrutiny of banks and law enforcement. The report features an interview with Kim Kwang Jin, who defected and revealed his role in an international re-insurance...

Categories Money Laundering/Sanctions
January 9, 2013

Over at Foreign Policy …

… Professor Sung Yoon Lee and I have a piece up discussing the world’s next, almost-certain-to-be-lost opportunity to respond to North Korea more effectively than having Susan Rice continue to beat her cranium against the Great Wall of China at the Security Council.  It’s a blend of Professor Lee’s prognostications about what the North will do next, and some of the financial constriction ideas I’ve been pushing as one of those Three C’s. I’ll say this about FP — it’s...

Categories Counterfeiting/Missiles/Money Laundering/North-South/Proliferation/Sanctions/WMD
October 23, 2012

End of Bureau 39 Wouldn’t Mean the End of N. Korea’s Criminal Enterprises

Reports last week claimed that, according to “sources familiar with North Korean affairs,” North Korea had shut down Bureau 39 of the Workers’ Party — responsible for obtaining hard currency by any means necessary, including illicit activities — and Bureau 38, responsible for managing the regime’s overseas funds. Are any of the reports true?  My default position about any “insider” reports from Pyongyang is skepticism, and a quick Google search reveals that we’ve heard many versions of this story before.  For example, Office...

Categories Counterfeiting/Money Laundering/Sanctions
January 24, 2011

Noooooooooooooooooooooooooooo!

The point man for the Obama administration’s financial wars on Iran, North Korea and al Qaeda, Stuart Levey, has decided to leave his senior U.S. Treasury Department post at what is turning out to be a particularly critical time. Someone wake me up now, dammit! Senior Obama administration officials disclosed Mr. Levey’s departure, after nearly a decade in government service, but stressed that it doesn’t signal a shift in U.S. policy or a slackening of Washington’s financial campaigns against Tehran,...

Categories Money Laundering
September 9, 2010

Hard Times for North Korean Restaurants in Asia

Via The Diplomat, the restaurants’ setbacks defy their limitless supply of morally retarded clientele: The Pyongyang eateries are known for being friendly but a little pricey and it’s unclear where exactly any profits go. Still, the ultimate destination of the cash spent in the restaurants hasn’t put customers off visiting. “˜I didn’t object to paying (what I did) for my meal, or feel that I was supporting a tyrant,’ says Don Douglas, an American NGO worker who recently ate at...

Categories Money Laundering
August 30, 2010

At Last, Plan B

This afternoon, the Treasury Department finally announced its long anticipated sanctions against North Korea, in the form of a sweeping new executive order. The order, pursuant to the International Emergency Economic Powers Act, authorizes the blocking of assets of “any person” providing what Treasury calls “material support” for North Korea’s WMD proliferation, money laundering, counterfeiting, trade in luxury goods, bulk cash smuggling, and pretty much everything North Korea does that violates UNSCR 1718 or 1874, or the U.S. Criminal Code....

Categories Cheonan Incident/Counterfeiting/Money Laundering/Sanctions
August 30, 2010

Plan B Watch

According to Yonhap, Treasury will roll out its new North Korea sanctions this week. I am giddy with anticipation. And on a related note, I hope the boys at Treasury are Daily NK readers (or better yet, sources): The No.39 Department, which is responsible for the management of Kim Jong Il’s private funds, holds the bank account with the British Virgin Islands branch of FirstCaribbean International Bank (FCIB), a prominent bank in the Caribbean region. According to an expert source...

Categories Counterfeiting/Money Laundering/Sanctions
August 5, 2010

Plan B Watch: Einhorn Goes to Tokyo, Pressure Builds on China

The latest reports in the Korean press tell us that the President will soon sign an over-arching executive order that will subsume the authorities of Executive Order 13,382 (see sidebars), and will also allow the blocking of assets used for proliferation, drug trafficking, and currency counterfeiting: In a press briefing on Monday, Department spokesman Philip Crowley said, “We have no doubt that North Korea has engaged directly in counterfeit operations as a means of bringing currency into the country. This...

Categories Counterfeiting/Money Laundering/NK Crime/NK Economics/Proliferation/Sanctions
August 2, 2010

Plan B Watch: Robert Einhorn Visits Seoul; State Directs Strong Criticism at China

Robert Einhorn, President Obama’s special adviser for non-proliferation and arms control, is visiting Seoul and Tokyo this week. He is accompanied by Daniel Glaser, who works with Treasury’s Undersecretary for Terrorism and Financial Intelligence, and who was a key architect of the Banco Delta Asia sanctions in 2005 and 2006. At the risk of making a comparison that Glaser might not necessarily welcome, his presence in Seoul has far more deterrent value than parking an aircraft carrier off the coast...

Categories Counterfeiting/Money Laundering/Sanctions
July 28, 2010

Plan B Watch: A Shot Across China’s Bow?

Hey, did the State Department threaten the Bank of China and the Bank of Shanghai? Or to put the question more bluntly, did someone just grow a pair? A diplomatic source here said the U.S. will blacklist more North Korean entities and individuals in the coming weeks so that international financial institutions would cut off ties with them. Any foreign banks refusing to sever business ties with the North Korean entities and individuals in question will have U.S. financial institutions...

Categories China/China & Korea/Counterfeiting/Money Laundering/Sanctions/U.S. Law
July 26, 2010

Plan B Watch: Treasury Targets 100 Suspicious N. Korean Accounts Worldwide

According to multiple newspaper reports published since late last week, the Obama Administration’s new asset-freezing campaign against North Korea began in earnest in June. The Treasury Department, having identified about 200 accounts worldwide suspected of storing the proceeds of banned weapons sales, currency counterfeiting, counterfeit cigarettes and Viagra, proliferation, drug trafficking, and other things that all sovereign nations to do pay for yachts for their despotic rulers. Treasury focused on 100 accounts where its evidence was strongest and quietly persuaded...

Categories Counterfeiting/Money Laundering/Sanctions
July 22, 2010

Plan B Watch: Clinton Announces Tightening of N. Korea Sanctions

Well, it’s about damn time: The Obama administration announced Wednesday that it would impose further economic sanctions against North Korea, throwing legal weight behind a choreographed show of pressure on the North that included an unusual joint visit to the demilitarized zone by Secretary of State Hillary Rodham Clinton and Defense Secretary Robert M. Gates. The measures, announced here by Mrs. Clinton after talks with South Korean officials, focus on counterfeiting, money laundering and other dealings that she said the...

Categories An Alliance?/Cheonan Incident/Counterfeiting/Money Laundering/Sanctions/U.S. & Korea