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March 24, 2017

Only North Korea’s government can end hunger in North Korea

Although I have many, many unanswered questions about how the U.N. is able to fully assess exactly how many North Koreans are going hungry, let’s just stipulate that it’s a majority of those living outside Pyongyang: Nearly 70 percent of the North Korean population, roughly seven in 10 people, is undernourished, a U.S. broadcaster reported Wednesday, citing a U.N. report on the need for humanitarian aid to North Korea. According to the report released the previous day by the U.N....

Famine & Food Aid

March 23, 2017

WSJ: Feds may indict North Koreans in Bangladesh Bank fraud

This story just gets more interesting by the day: Federal prosecutors are building cases that would accuse North Korea of directing one of the biggest bank robberies of modern times, the theft of $81 million from Bangladesh’s account at the Federal Reserve Bank of New York last year, according to people familiar with the matter. The charges, if filed, would target alleged Chinese middlemen who prosecutors believe helped North Korea orchestrate the theft, the people said. The current cases being pursued...

Cyberwar/NK Crime/U.S. Law

March 22, 2017

Royce introduces bill to toughen sanctions on N. Korea; subcommittee holds hearing

The big news yesterday was that Ed Royce, the Chairman of the House Foreign Affairs Committee, has introduced a sequel to the North Korea Sanctions and Policy Enhancement Act, or NKSPEA. You can read the full text here, but briefly, the bill — Expands the mandatory and discretionary sanctions in NKSPEA 104 to match the sanctions added by UNSCR 2270 and UNSCR 2321. It also adds a few more, like authorizing Treasury to sanction anyone who imports food from North Korea — a...

China/Money Laundering/Sanctions/U.S. Law/U.S. Politics

March 22, 2017

Top NSA official attributes attempted $1B bank heist to North Korean hackers

The story of the Bangladesh Bank/SWIFT heist has gotten much more interesting of late. Now, not only do we have a senior U.S. intelligence official attributing it to a government, we learn that the North Koreans tried to steal nearly …. A senior National Security Agency official appeared to confirm that North Korean computer hackers were behind a multi-million dollar heist targeting Bangladesh’s central bank last year. Computer hackers attempted to steal $951 million, but only got away with $81...

Cyberwar/NK Crime/Terrorism (NK)

March 21, 2017

North Korean security forces now asking politely for protection money

Yet more reports are validating that, since the recent ouster of State Security Minister Kim Won-hong for “human rights violations” and other reasons, something has changed (at least for now) in the way North Korea’s internal security forces are operating: Following orders from Kim Jong Un for the Ministry of State Security (MSS) to refrain from violating human rights, its personnel have begun to shy away from their characteristic extortionist behavior during their interactions with residents. This appears to be...

Class Warfare/Human Rights

March 20, 2017

Ted Cruz introduces Senate bill to re-list N. Korea as a state sponsor of terrorism

Ted Cruz, who has emerged as a leading advocate for a harder line against North Korea, has introduced a Senate companion bill to Rep. Ted Poeâ€™s bill, calling for North Koreaâ€™s re-listing as a state sponsor of terrorism. According to a press release from Senator Cruzâ€™s office,* Cruzâ€™s bill has six original co-sponsors: Sens. Thom Tillis (R-N.C.), Dean Heller (R-Nev.), Lisa Murkowski (R-Alaska), Marco Rubio (R-Fl.), Dan Sullivan (R-Alaska), and Cory Gardner (R-Colo.). Compared to the House bill, the Senate...

Terrorism (NK)/U.S. Law/U.S. Politics

March 17, 2017

Will China cooperate on North Korea sanctions? That depends on which “China” you mean.

I often talk about the importance of pressuring China to pressure North Korea. When I do, people sometimes cock their heads like my dog would do when he heard a new sound, and ask me whether China would cooperate with that. I answer this question with a question of my own: “Which China?” China, for all its top-down authoritarianism, isn’t a monolith. Like most societies, it has different constituencies with different views that fear different risks and pursue different interests....

China & Korea/Money Laundering/Sanctions

March 16, 2017

N. Korea, Lazarus & SWIFT: Are the white hats closing in? (Update: SWIFT cuts off remaining N. Korean banks)

In the last month, major news stories about North Korea have bombarded my batting cage faster than I’ve been able to swing at them. I’d wondered when I’d have a chance to cover Katy Burne’s detailed story in the Wall Street Journal about the empty half of the SWIFT glass – that despite its recent decision to disconnect three U.N.-designated North Korean banks, it’s still messaging for banks that are sanctioned by the Treasury Department, but not by the U.N.:...

Cyberwar/Money Laundering/NK Crime/U.S. Law

March 15, 2017

UN report finds extensive evidence that China hosts N. Korea’s proliferation networks

A new report from the Wall Street Journal, quoting “U.S. and Asian officials,” says that the Trump Administration is considering “increasing financial penalties on Chinese companies in response to growing evidence of their support for North Korea’s weapons programs.” Such as: In a case that particularly alarmed the Trump administration, a North Korean businessman attempted to use Pyongyang’s embassy in Beijing to export a lithium metal that is used to miniaturize nuclear warheads, according to the U.N. report. [Wall Street...

China & Korea/Missiles/Proliferation/WMD

March 14, 2017

Another North Korean ship sinks, this time off the Chinese coast

In an effort to hide their sanctions violations from the prying eyes of the U.N. Panel of Experts — and from Leo Byrne and the sharp-eyed investigators at C4ADS — North Korean ships have taken to turning off the transponders and navigational devices that allow others to know where they are. Now that I’ve explained the advantages of that, let’s talk about one big possible disadvantage: other ships might crash into you and sink you. That’s the best explanation I...

Shipping sanctions

March 13, 2017

North Korea calls U.S. Ambassador to U.N. “a political prostitute,” usual suspects fall silent

The regime that called President Obama a “wicked black monkey” and an “ugly subhuman,” and called Justice Michael Kirby “a disgusting old lecher with a 40-odd-year-long career of homosexuality,” has responded to Ambassador Nikki Haley’s statement at the U.N. last week that Kim Jong-un was not rational: KCNA Commentary Brands U.S. Representative at UN as Political Prostitute Pyongyang, March 11 (KCNA) — The U.S. representative at the UN Haley known for her capricious political savvy has now gone helter-skelter. ...

Diplomacy/Useful Idiocy/WTF?

March 9, 2017

Trump admin leaning toward tougher sanctions & (maybe) “covert actions”

For weeks, we’ve heard that the Trump administration was expected to complete a top-to-bottom review of North Korea policy by the end of this month. Barely into the second week, Reuters is already giving us a peek at where the review is headed. Skim past the mandatory all-options-are-on-the-table disclaimer and “senior U.S. officials” say this: They added a consensus was forming around relying for now on increased economic and diplomatic pressure – especially by pressing China to do more to...

U.S. Politics/Washington Views

March 8, 2017

China is waging economic war against S. Korea. We must stand by our ally.

Less than two years ago, I wrote of the coming Korea missile crisis. That crisis has now arrived. As I’ve documented at this site, that crisis is, in large part, a crisis of China’s making. North Korean missiles are made in part from Chinese technology, in large part from components purchased in or smuggled through China, and that are almost always procured by North Korean agents who operate more-or-less openly on Chinese soil. North Korea’s missiles ride on Chinese trucks....

An Alliance?/China/China & Korea/Japan & Korea

March 7, 2017

Malaysia holds the upper hand in its hostage dispute with North Korea

Three weeks ago, Malaysia was one of North Korea’s most important trading partners — a haven, hub, and way station for its arms trafficking, money laundering, and slave labor. Money has long been the limiting reagent in Pyongyang’s experiment with phobocracy. It’s now clear that Kim Jong-un will soon pay a heavy financial and diplomatic price for the badly botched murder of his half-brother, Kim Jong-nam with a persistent nerve agent in a crowded airport terminal in Kuala Lumpur last month....

Sanctions/Terrorism (NK)

March 6, 2017

Yay, it happened! Jim Rogers got burned by hyping North Korea!

And just like that, crackpot investment advisor Jim Rogers joins the distinguished company of Hyundai Asan, Volvo, Yang Bin, David Chang and Robert Torricelli, Chung Mong-Hun, Roh Jeong-ho, and Orascom’s Naguib Sawaris, all of whom won Darwin Awards in North Korea. I’ve previously written about Rogers and his enthusiasm for North Korea and its worthless currency. That OFK post caught the eye of a New York Times reporter, who has just published a story on the relationship between Rogers and his self-described business...

"United" Nations/Money Laundering/Sanctions/U.S. Law

March 6, 2017

U.N. report: SWIFT banking network violated North Korea asset freeze

Since last year, this blog has covered SWIFT’s continued provision of financial messaging services to North Korean banks, despite suspicions that North Korea was involved in stealing almost $100 million from the Bangladesh Bank by hacking into SWIFT’s messaging software. Later, I wrote about an effort in the last Congress to ban North Korean banks from SWIFT, mirroring a sanction that was one of our most effective measures against Iran. SWIFT is effectively the postal service of the financial system,...

"United" Nations/Europe/Money Laundering/Proliferation/Sanctions

March 3, 2017

Class struggle in North Korea

“The history of all hitherto existing society is the history of class struggles. Freeman and slave, patrician and plebeian, lord and serf, guildmaster and journeyman, in a word, oppressor and oppressed, stood in constant opposition to one another, carried on an uninterrupted, now hidden, now open fight, that each time ended, either in the revolutionary reconstitution of society at large, or in the common ruin of the contending classes.” – Karl Marx, The Communist Manifesto And yet, no place is...

Capitalism/Class Warfare

March 2, 2017

N. Korea, dissent & desertions: as internal control tightens, border control degrades

I haven’t yet had time to read Nat Kretchun’s new report on the circulation of samizdat inside North Korea, but Reuters, The Washington Post, and Sokeel Park helpfully summarize its bleak findings: Kim Jong-un is not a Swiss-educated reformer, is not bringing Glasnost to North Korea, has turned Koryolink into a tool for hunting down dissent and dissenters, and is slowly winning the war to restore thought control. (Still unanswered is whether Syracuse University’s “engagement” program that taught Pyongyang how to do digital watermarking also helped...

Border Control/NK Military/Subversion