Home  >  Sanctions

Category: Sanctions

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
September 4, 2010

Pueblo Plaintiffs Hunt for North Korean Assets in Treasury’s Files

When the survivors of the U.S.S. Pueblo, joined by the widow of their captain, sued North Korea for the horrific torture they endured in 1968, the real question wasn’t whether they were entitled to compensation, it was whether they could ever collect any. North Korea, as it has done with all of the other suits against it in U.S. federal courts, refused to respond to the suit after being duly served at its U.N. mission. Consequently, the court entered a...

Categories Sanctions/U.S. Law
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
July 1, 2010

What Sanctions Can, and Can’t Do

While President Obama expresses frustration at China’s refusal to support sanctions against North Korea for sinking the ROKS Cheonan, U.S. officials are also expressing their concerns that China will also undermine sanctions against Iran. For what it’s worth, I’m much less bullish about Iran sanctions than I am about sanctions against North Korea. The potential effect of sanctions is inversely proportional to a regime’s connections to the outside world and its possession of goods that have an export market. As...

Categories Iran/NK Economics/Sanctions
June 28, 2010

You Say That Like It’s a Bad Thing: “China Hand” Fears Treasury Sanctions

I’m apparently not the only one who cocked an eyebrow at the refusal of a State Department spokesman recently to rule out applying new sanctions to be directed at North Korea to third-country entities. The United States Wednesday did not preclude the possibility of freezing North Korean assets in foreign banks to effectively cut off resources for the North’s development and proliferation of weapons of mass destruction. “I’m not going to predict any particular step that we’re contemplating, but these...

Categories China & Korea/Counterfeiting/Fiskings/Money Laundering/Sanctions
June 19, 2010

Is the Obama Administration Ready for Plan B at Last?

Well, finally! The Obama administration is considering going after the assets of North Korean entities and individuals to punish Pyongyang after the sinking of a South Korean warship, sources familiar with the matter said on Friday. Freezing offshore assets would be the first tangible U.S. action to make North Korea pay a price for the March 26 sinking of the Cheonan corvette in which 46 South Korean sailors died. Pyongyang has denied responsibility for the incident. While there have been...

Categories "United" Nations/Cheonan Incident/Counterfeiting/Money Laundering/Sanctions
June 7, 2010

China’s Support for Kim Jong Il Undermines the U.N., Nonproliferation, and Regional Peace

Some of us, of course, have never really believed that the United Nations could play much of a useful role in restraining North Korea anyway, other than helping us enlist the support of Old Europe, which is almost alone in paying any heed to the U.N. After all, the institution is led by Ban Ki-Moon, who rose from local obscurity to international obscurity by appeasing Kim Jong Il, and who, by all outward appearances, suffers from a genetic testosterone deficiency....

Categories "United" Nations/Cheonan Incident/China & Korea/Diplomacy/Proliferation/Sanctions
June 2, 2010

Plan B Watch

I really, really like the way the South Korean Foreign Minister is talking lately, and I hope he also expresses the sentiments of U.S. officials with whom he’s spoken: Strangling the flow of cash to North Korea is the most effective non-military way to hold the Stalinist country accountable for the sinking of the Navy corvette Cheonan, Foreign Minister Yu Myung-hwan said Tuesday. “The U.S. is keeping a close eye on North Korea’s trafficking of counterfeit banknotes, drugs and tobacco...

Categories Cheonan Incident/Counterfeiting/Money Laundering/Sanctions
May 31, 2010

Robert Einhorn to Lead North Korea Sanctions Implementation Effort

The Joongang Ilbo is reporting that Clinton Administration alumnus and counter-proliferation expert Robert Einhorn is going to be put in charge of “streamlining the process by which it implements” international sanctions against North Korea, sanctions that are likely to be enhanced after an international investigation found that North Korea torpedoed and sank the South Korean warship Cheonan. “The U.S. administration was seeking more efficient management of implementation of sanctions, which had been divided between the State and the Treasury departments,”...

Categories Cheonan Incident/China & Korea/Counterfeiting/Money Laundering/Sanctions/U.S. Law/Washington Views
May 13, 2010

Cheonan conclusions will mean tougher N. Korea policies … for a while, anyway

It certainly looks like every government official outside Beijing who has seen the evidence now believes that North Korea sank the Cheonan and killed 46 members of its crew. Among those who have drawn their conclusions are the South Korean government, the Obama Administration, and the Republicans in Congress. The multinational investigation is now sufficiently advanced that the official Yonhap News Agency says that the findings could be released as early as next week. One interesting leak references a stray...

Categories Cheonan Incident/North-South/Sanctions/Terrorism (NK)/U.S. Politics/Washington Views
May 12, 2010

North Korea Arms Terrorists, State Department Dozes

The Foreign Minister of Israel has become the first government official to openly accuse North Korea of arming terrorists since the U.S. government removed North Korea from the list of state sponsors of terrorism in 2008: The Israeli foreign minister said on Wednesday that North Korean weapons seized in Thailand last year were headed for Islamist groups Hamas and Hezbollah. [….] “With huge numbers of different weapons … (it had the) intention to smuggling these weapons to Hamas and to...

Categories Axis of Evil/Proliferation/Sanctions/Terrorism (NK)/WMD
April 28, 2010

“Collective Spirit” Update

The Chosun Ilbo reports that despite international sanctions, Kim Jong Il still manages to import ample quantities of rice and infant formula add “between $200 and $300 million every year” to his personal slush fund: With the money, North Korea would be able to import between 400,000 to 600,000 tons of rice, which would be enough to cover half the country’s food shortage of 1 million tons of rice per year. What? Since when isn’t cognac food anymore? Isn’t it...

Categories Kim Jong Il/NK Economics/Sanctions