Category: Sanctions

October 8, 2015

U.N. report demands that N. Korean leaders be held accountable through prosecution, sanctions

U.N. Special Rapporteur Marzuki Darusman has issued another report on human rights in North Korea (or more accurately, the lack thereof). The bad news is that the situation hasn’t improved, and North Korea and China are still stonewalling: Regrettably, the situation remains the same, despite the grave concerns reiterated by the international community in different forums. The Special Rapporteur also reflects on issues around accountability for those human rights violations, which should be addressed at an early stage, and on current efforts by the international community...

Categories "United" Nations/Activism/Anju Links/Human Rights/Sanctions

October 7, 2015

Sens. Gardner, Rubio & Risch to introduce new North Korea sanctions bill (updated)

The new bill was revealed in this column by Josh Rogin, and includes a link to the full text. The bill, which still has no number, will be the Senate’s second version of the North Korea Sanctions Enforcement Act, following the introduction by Senators Menendez and Graham of S. 1747 in July. Both bills follow the lead of Ed Royce and Elliot Engel, the Chairman and Ranking Member of the House Foreign Affairs Committee, who introduced H.R. 757 in January. H.R. 757,...

Categories Anju Links/Sanctions

September 8, 2015

In its losing battle against N. Korean proliferation, State Dep’t whacks 2 more moles

Yonhap reports that the State Department has sanctioned two North Korean trading companies under the Iran, North Korea, and Syria Nonproliferation Act, a narrow counterproliferation statute entombed in the notes following the International Emergency Economic Powers Act, at the end of Title 50. The firms are Polestar Trading Company, Ltd., a North Korean entity in China, and RyonHap-2, a trading firm in the North, were among a total of 22 entities sanctioned by the State Department under the Iran, North Korea,...

Categories Proliferation/Sanctions/WMD

August 6, 2015

NYC insurer agrees to $271K penalty for insuring North Korean ships

This afternoon, the Treasury Department’s Office of Foreign Assets control announced that as part of a settlement, Navigators Insurance Company has agreed to pay OFAC a civil penalty of $271,000 for 48 sanctions violations involving Iran, Sudan, Cuba, and North Korea. Navigators is a New York-based provider of maritime insurance. It also had a branch in London, which evidently decided to cut costs by skimping on lawyers. Here’s how that worked out for them. Between May 8, 2008 and April 1, 2011, Navigators and...

Categories Sanctions

August 4, 2015

Switzerland sells luxury watches to Kim Jong-Un, despite U.N. sanctions and food shortages

Throughout North Korea’s Great Famine, as millions of North Koreans either starved to death or watched their loved ones die, suppliers across Europe willingly sold Kim Jong-Il millions of dollars’ worth of luxury cars, yachts, cognac, and Swiss watches. In 2006, the U.N. Security Council recognized the obscenity of this practice by adopting Resolution 1718, which first banned the export of luxury goods to North Korea. Among European nations, probably none has done more than Switzerland to enable the democidal kleptocracy of...

Categories Europe/Luxury Goods

July 27, 2015

Treasury issues final rule on FBME Bank

Treasury has issued its final rule on FBME Bank, the subject of this post and this one. If you want a shorter summary, here’s Treasury’s press release.

Categories Money Laundering

July 24, 2015

Treasury designates Singaporean shipping company for N. Korea weapons trade, but what about the Bank of China?

More than two years after the North Korean merchant vessel Chong Chon Gang was caught trying to sneak a shipment of Cuban MiGs and missiles through the Panama canal hidden under 200,000 sacks of sugar, the Treasury Department has, slowly and slightly, expanded its sanctions against the shipping companies involved in the incident. Yesterday afternoon, the Treasury Department’s Office of Foreign Assets Control (OFAC) designated Singapore-based Senat Shipping and its Director, Leonard Lai a/k/a Yong Chian Lai, a Singaporean national. It also blocked...

Categories Money Laundering/Sanctions

July 13, 2015

The Korea Development Institute wants to help companies “bypass” U.N. sanctions against N. Korea

Pyongyang’s latest business model for accessing hard currency despite U.N. sanctions is to rent out tens of thousands of its workers to Chinese factory owners. Those workers then labor in exploitative conditions, while Pyongyang steals most of their wages. Now, the Korea Development Institute—an “independent” think tank created under South Korean law in 1970, and “partnered” with several U.N. bodies and at least one South Korean government ministry—is urging small and medium-sized South Korean firms to join these exploitative arrangements. I’ve often argued...

Categories Sanctions/Sunshine

July 10, 2015

Senators Graham, Menendez introduce companion to N. Korea Sanctions Enforcement Act

Senators Lindsey Graham (R, SC) and Robert Menendez (D, NJ) introduced the bill, numbered S. 1747, last night. I haven’t had a chance to read the full text yet, but from my initial read, it looks similar to S. 3012, which Senator Menendez introduced in the 113th Congress. Like S. 3012, S. 1747 makes the designations in Section 104(a) discretionary, rather than mandatory. The problem with that approach is that so far, President Obama has exercised his discretion to sanction North Korea as little as possible. The State...

Categories Sanctions/U.S. Law

July 6, 2015

EU blocking of Korea National Insurance Corp. hints at key shift in N. Korea sanctions enforcement

The European Union’s administrative body, the European Commission or EC, has added seven additional designations to its regulation on “restrictive measures” against North Korea. The new designees include the Korea National Insurance Corporation, or KNIC, and six of its officials. There are several good reasons why the EC could have designated KNIC, but didn’t (the reason it did use is more interesting, but we’ll get to that later). First, KNIC has been linked to Pyongyang’s luxury goods imports, which have been banned since...

Categories Europe/Sanctions/Shipping sanctions

June 27, 2015

South Korea’s new unilateral sanctions point to a multilateral sanctions strategy

South Korea has imposed unilateral financial sanctions “on six Taiwanese individuals and entities for their alleged arms trade with North Korea,” and on the Syrian Scientific Studies and Research Center. The Taiwanese entities include Global Interface Company, Trans Merits, Trans Multi Mechanics, Tsai Hsein Tai, Su Lu-Chi and Chang Wen-Fu. None of the entities are currently designated by the U.N. Security Council, whose designation process has historically been slow and subject to Chinese and Russian obfuscation. It is the first time that the government has...

Categories Proliferation/Sanctions

May 28, 2015

U.S., allies talk sanctions and human rights (emphasis on talk)

We’d hardly had time to digest all those rumors of “exploratory talks” with North Korea just two weeks ago, before John Kerry was in Seoul, sounding like his speechwriters had slipped him some cut-and-pasted OFK text. There, Kerry denounced Pyongyang’s “recent provocations,” said it wasn’t “even close to” ready for serious about talks, and accused it of “flagrant disregard for international law while denying its people fundamental freedom and rights.” “The world is hearing increasingly more and more stories of grotesque, grisly,...

Categories Diplomacy/Sanctions/Six-Party Talks

May 27, 2015

Gloria Steinem was right about isolation (of South Africa)

Gloria Steinem can look back on a life of activism that has built deep reserves of good will among many people. Steinem must have spent heavily from those reserves last week, when Women Cross DMZ attracted largely critical media coverage (and I suspect, an even more critical public reaction). As NK News informs us, its events were stamped from the same propaganda assembly line as those put on for the clown-shod Quisling Alejandro Cao de Benos. To what end would...

Categories Sanctions/Useful Idiocy

May 18, 2015

GAO: State Dep’t must step up diplomacy to enforce N. Korea sanctions

The General Accountability Office has released a new report on the enforcement of sanctions against North Korea. The report, requested by Senate Foreign Relations Committee Chairman Bob Corker, will probably influence the contours of the Senate’s version of the North Korea Sanctions Enforcement Act. You can read the full report here and a summary here, and listen to a podcast here. The report correctly points to a key flaw in the enforcement of the sanctions that exist now — a lack of financial intelligence....

Categories "United" Nations/Sanctions/U.S. Law

May 14, 2015

N. Korea’s expatriate labor needs ethical and financial limits

N. Korea increasingly relies on expat labor for hard currency A series of new reports suggests that the export of labor has become a major source of income for Pyongyang. The Financial Times cites an NGO estimate that the regime earns $1.5 to $2.3 billion a year from contract labor, in line with educated estimates of its annual revenue from missile sales ($1.5 billion) or arms deals with Iran ($1.5 billion to $2 billion). (Update: Marcus Noland questions that estimate,...

Categories Engagement/Human Rights/Kaesong/Russian Far East/Sanctions

April 21, 2015

Obama Administration hints at sanctioning N. Korean human rights violators

A year after a U.N. Commission of Inquiry found the North Korean government responsible for crimes against humanity whose “gravity, scale and nature … reveal a State that does not have any parallel in the contemporary world,” action at the U.N. has effectively stalled in the face of Chinese and Russian veto threats. As I have written before, Congress can impose effective sanctions on those responsible in ways that the U.N. can’t and the Obama Administration won’t. But now, the...

Categories Human Rights/Sanctions

April 17, 2015

Expert: cash shortage could undermine Kim Jong Un’s succession

You won’t find a more authoritative open-source study of North Korea’s police state than the one Ken Gause did for the Committee for Human Rights in North Korea. When it comes to North Korea’s internal security, kremlinology, and command systems, Gause earns a great deal of respect among North Korea watchers. So when Ken Gause tells Yonhap that Kim Jong Un “has not fully consolidated his power,” and is at risk of failing to do so “in a couple of...

Categories Kremlinology/Sanctions

April 15, 2015

Why does North Korea still need food aid? (Updated)

The UN aid agencies working in North Korea — the Food and Agriculture Organization, the UN Population Fund, UNICEF, the World Food Program, and WHO (writing collectively as Relief Web) — have published a new report. I draw three main conclusions from it. First, despite some reports of improved food production, the humanitarian situation is still bad. Second, aid agencies still aren’t being forthcoming about the most important reasons for that. Third, various UN entities are working at cross purposes, and don’t...

Categories "United" Nations/Famine & Food Aid/Sanctions