Category: Sanctions

Of course, a better North Korea policy means more than sanctions

Professor Haggard is skeptical that a “sanctions only approach” toward North Korea could work, which compels me to expand on why I agree, and on what a better approach would look like. It should go without saying that no act of Congress can ever be more than part of a complete foreign policy, something that, by constitutional design, only the executive branch can wield. Certainly the imposition and enforcement of tough sanctions are at the heart of the North Korea Sanctions Enforcement Act, H.R....

Robert Potter’s “third way” is a good way, but it’s really a second way

Writing at The Diplomat, Potter takes on the futile task to navigating between pro-engagement extremists like Mike Bassett, Felix Abt, and someone named Joe Terwillager, on one hand, and anti-engagement extremists like me, on the other. Potter proposes this third way: Sanctions of the right kind can ensure that the Kim dynasty never becomes wealthy enough to close the markets down, but removing them entirely could empower the Kims and make the regime less likely to tolerate change. As for engagement, pointing...

Must see: An opinion about N. Korea sanctions from an actual sanctions expert (really!)

William Newcomb, formerly of the U.S. Treasury Department and the U.N. Panel of experts (UNPOE), was at The Korea Society last Friday to talk with Stephen Noerper about North Korea sanctions, what they are, and how to make them a useful policy tool again. Newcomb didn’t have time to explain all of the authorities and their provisions in detail, but he did make some important points. First, Newcomb blames “politics” for the fact that the UNPOE hasn’t designated a number...

FATF and FINCEN again call for “countermeasures” against N. Korean money laundering

If you will permit me to extend a metaphor for North Korea’s stature in the world of global finance, Pyongyang may have been invited to one Boy Scout jamboree, but it’s still on the sex offender registry. If anything, it has reached a co-equal status with Iran: Since June 2014, the DPRK has further engaged directly with the FATF and APG to discuss its AML/CFT deficiencies. The FATF urges the DPRK to continue its cooperation with the FATF and to...

Uganda is violating U.N. sanctions against North Korea

When North Korea sends its diplomats to Africa, presumably to ask for their votes against a General Assembly resolution that would refer Kim Jong Un to the ICC, I hope it sends at least some of the same diplomats who called Botswana’s U.N. Ambassador a “black bastard,” if only to show the hypocrisy of the African leaders who received them: President Yoweri Museveni of Uganda gave a state banquet late Thursday in honor of North Korea’s ceremonial head of state,...

How to write like an expert on sanctions: Step 1, read the sanctions.

I don’t doubt that Stanford scholar Yong Suk Lee’s minor premise—that Pyongyang shifts economic pain to the proles and peasants—is correct. To extend this into a convincing policy argument, however, that Pyongyang would only shift the pain of sanctions to the North Korean people, requires a more convincing case for his major premise–that the deprivation of the North Korean people is a function of sanctions, rather than state policies that willfully impose that deprivation. It’s a case that Lee fails to make, in part because...

Another North Korean money man vanishes

The head of a foreign currency-earning enterprise, which is said to be involved in managing Kim Jong Eun’s slush fund, has disappeared, raising questions as to why. The company, which is based in Yangkang Province, operates under the No.121 Department, a bureau that specializes in timber supplies. [Daily NK] Based on my reading of the reports, it doesn’t sound like the same person as that guy who was reported in August to have defected in Russia, but I’m not 100%...

On Europe, the U.N., luxury goods, and the ethical limits of engagement.

The latest rant from Professor Lee and me is published here, on CNN International, in the hope that it will catch the eyes of European audiences (and maybe even give Felix Abt a migraine). Mind you, I think the EU’s leadership of the U.N. response to the Commission of Inquiry report has been commendable, but Europe has to do a better job of enforcing U.N. sanctions, and curbing the actions of unethical profiteers who would sell Kim Jong Un cigarette-making...

If Yoon Sang-Hyun’s information is correct, North Korea spends six times as much on luxury goods as on food for its hungry (corrected).

South Korean Saenuri Party lawmaker Yoon Sang-Hyun, citing Chinese Customs data and “studies on North Korean trade patterns” compiled by the National Intelligence Service South Korean government,* has leaked a report alleging that in 2013, Pyongyang imported $644 million in luxury goods. Yoon says this is enough to buy “more than 3.66 million tons of corn or 1.52 million tons of rice, far more than the country’s food shortage of 340,000 tons estimated by the U.N. Food and Agriculture Organization...

Kurt Campbell: We need tougher sanctions on North Korea.

Kurt Campbell, President Obama’s former Assistant Secretary of State for East Asian Affairs and now CEO of The Asia Group, continues to debunk the pair of academic urban legends that North Korea sanctions (a) are maxed out, and (b) therefore, not a promising policy alternative. At a forum in Seoul last week, Campbell called on his former boss to “further toughen financial sanctions against North Korea” if it continues to refuse to give up its nuclear program and continues its military...

H.R. 1771: A response to Stephan Haggard

Stephan Haggard has published the second of two comments on H.R. 1771, the North Korea Sanctions Enforcement Act, at KEIA’s blog, following Bruce Klingner’s first post on the subject. Haggard and I have a history of genial disagreement about North Korea policy, but I find much more in this thoughtful and well-considered post to expand on than to argue with. Haggard has obviously read and understood the legislation before opining about it. (Marcus Noland, Haggard’s co-author at Witness to Transformation,...

U.N. should fund its aid programs from Kim Jong Un’s Swiss accounts.

The Wall Street Journal updates us on the dire financial state of the U.N. World Food Program’s operations in North Korea. The United Nations aid program for malnourished North Koreans may close after raising only a fraction of the money it needs to operate in the country, a senior U.N. official said in a call for donations. “We may need to scale down or think about closing altogether,” Dierk Stegen, the Pyongyang-based North Korea head for the U.N. World Food...

North Korean Gulag survivors call on Switzerland to freeze Kim Jong Un’s slush funds (Alternate title: Cursed are the Cheesemakers).

Switzerland has always been there for North Korea. When North Koreans were starving to death in heaps, Switzerland was there to receive Kim Jong Il’s personal shopper and sell him millions of dollars’ worth of its finest timepieces. When North Korea needed creative new ways to make money – literally! – Switzerland sold it the very same intaglio presses and optically variable ink our Bureau of Engraving and Printing uses to make money. When Kim Jong Un needed a place...

Must Read: Bruce Klingner on North Korea sanctions

Writing at the blog of the (cough, cough) Korea Economic Institute, Klingner, a former CIA analyst and a scholar at the Heritage Foundation, hammers home the weakness of our North Korea sanctions and their enforcement. While still at the State Department, Campbell realized that “Burma had much more in the way of sanctions” than North Korea and correctly, if belatedly, concluded that “Clearly we have not been successful at putting substantial pressure on North Korea [and] it would be possible for us...

MUST READ: WSJ on Bureau 39 and North Korean money laundering, post-BDA

The Obama Administration has never talked much, or done much, about North Korean money laundering. There is a tendency to assume that a problem that isn’t discussed isn’t a problem at all, but The Wall Street Journal‘s Alastair Gale has just interviewed some senior defectors with inside knowledge of North Korea’s money laundering, and the product of those interviews was some outstanding reporting. Gale’s interviews confirm the continued importance of Bureau 39 to North Korea’s regime, and that it continues to engage in...

Former Obama Admin. official: Our N. Korea sanctions are weak and our policy is stuck

The Obama Administration’s North Korea team is stuck. Its thirst for fresh blood is so dire that it recently asked Keith Richards whether he still has the number of that secret clinic in Switzerland.* Don’t take my word for it. Last Friday, former Assistant Secretary of State Kurt Campbell spoke at the Center for Strategic and International Studies, as a friend and spy of mine was sitting in the audience (thank you). Campbell’s remarks are worth listening to in full, but the...

U.N. Panel of Experts to investigate M/V Mu Du Mong

A U.N. panel that upholds sanctions against North Korea’s nuclear weapons program is sending personnel to investigate a North Korean cargo ship moored at a Mexican port, U.N. diplomatic sources familiar with the matter told Kyodo News. [Yonhap] “Sending personnel” suggests that the POE will inspect the ship. The POE also sent personnel to inspect the M/V Chong Chon Gang after Panamanian authorities found it smuggling weapons last year. The travels of the M/V Mu Du Bong were first brought...