Search Results for: forfeit

June 30, 2017

Commence Primary Ignition: Treasury zaps the Bank of Dandong for laundering Kim Jong-Un’s money

And so, the “maximum pressure” we’ve been waiting for begins in earnest. Yesterday afternoon, the Treasury Department announced a series of legal actions against Chinese enablers of North Korea’s proliferation, smuggling, and money laundering. First, Treasury’s Office of Foreign Assets Control froze the assets of two businessmen and a shipping company. One of those businessmen, Sun Wei, was the sole shareholder of Mingzheng International Trading, the Chinese company targeted in this recent civil forfeiture action. The shipping company was sanctioned for...

Categories Money Laundering/Sanctions
June 13, 2017

C4ADS: Pyongyang’s networks in China are “centralized, limited, and vulnerable” to sanctions 

Because I’ve already given too many minutes of my life to the moveable farce named Dennis Rodman, I’m devoting today’s post to something more consequential: the Center for Advanced Defense Studies’s new report exposing more North Korean financial networks in China, and dispelling the misinformation that North Korea is isolated from the financial system and thus sanctions-proof. (Full disclosure: I advised C4ADS on the drafting of the report, without compensation of course.) Money quote: The continuing misperceptions of North Korea...

Categories China/Money Laundering/Sanctions/Shipping sanctions
April 26, 2017

How Moon Jae-in rode a wave of violent anti-Americanism from obscurity to power

Like Roh Moo-hyun, the President he served, Moon Jae-in’s ideological origins are found within the leftist lawyers’ group Minbyun (which has since become Pyongyang’s instrument for intimidating North Korean refugees in the South). As lawyers defending left-wing radicals and pro-democracy activists alike against the right-wing dictatorship, Moon and Roh became close friends and law partners in Pusan. Moon went on to become the legal advisor to the Pusan branch of the Korea Teachers’ and Educational Workers’ Union, a radicalized union...

Categories An Alliance?/Anti-Americanism/Korean Politics/U.S. & Korea
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...

Categories Cyberwar/NK Crime/U.S. Law
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.:...

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

Categories Border Control/NK Military/Subversion
February 8, 2017

Leaked U.N. report reveals record seizure of North Korean arms last August (updated)

The 2017 report of the U.N. Panel of Experts isn’t due to be published for another month, but a Kyodo News reporter has already obtained and published leaked excerpts. The focus of Kyodo’s story is the now-familiar (and unquestionably accurate) castigation of member state governments for not putting enough will or resources into the enforcement of North Korea sanctions, but I’d like to start with this revelation: “An interdiction of the vessel Jie Shun was the largest seizure of ammunition...

Categories Arms Trafficking/Shipping sanctions
December 7, 2016

For North Korean banks, 2016 has been like that Corleone baptism montage

Years from today, North Korean bankers will remember 2016 as their annus horribilis. In February, a month after the North’s fourth nuclear test, Congress passed, and the President signed, the North Korea Sanctions and Policy Enhancement Act. Section 201 of the new law all but compelled the Treasury Department to designate North Korea a Primary Money Laundering Concern under section 311 of the Patriot Act. Section 311 allows for a menu of special measures to protect the financial system against...

Categories Money Laundering/Sanctions
December 6, 2016

The U.S. may (finally) be serious about capping North Korea’s coal exports

For almost three months after North Korea’s fifth nuclear test, the U.N. Security Council remained deadlocked over how to respond, with the U.S. and its allies pressing to limit Kim Jong-un’s access to hard currency and China trying to shield its belligerent protectorate from the consequences of its behavior. Among the most hotly debated questions was how to limit North Korea’s coal exports to China, one of His Porcine Majesty’s most important sources of hard currency. Although UNSCR 2270, passed...

Categories China & Korea/Sanctions
November 22, 2016

China breaks N. Korea sanctions it says won’t work because it’s afraid they’ll work

In yesterday’s post, I linked to reports suggesting that China’s failure to agree on the terms of a new U.N. sanctions resolution responding to North Korea’s latest nuclear test may be motivated by a desire to wait out the end of President Obama’s administration. This theory would only make sense if China figures it can get better terms from President Trump next year, but my post pointed to evidence of the opposite of this — that what we know so...

Categories China/Money Laundering/Sanctions/U.S. Politics
November 7, 2016

Treasury finalizes cutoff of N. Korean banks from U.S. financial system

After a long delay, the Treasury Department has issued its final rule prohibiting financial institutions operating in U.S. jurisdiction from providing direct or indirect correspondent account services to North Korean financial institutions. In English, that means North Korean banks are now denied a critical link for accessing the global financial system. North Korea is now one of only three countries to be declared a Primary Money Laundering Concern by the Treasury Department, and is the only country subject to Special Measure...

Categories Money Laundering/Sanctions
October 25, 2016

While Obama sleeps, China cheats, and Korea’s doomsday clock ticks

“The era of procrastination, of half-measures, of soothing and baffling expedients, of delays is coming to its close. In its place we are entering a period of consequences.” – Winston Churchill It has now been six weeks since North Korea’s fifth nuclear test, and the U.S. and China remain deadlocked in their talks about a new resolution to close the loopholes in existing U.N. sanctions. Pyongyang is racing to make its nuclear armament a fait accompli before the next U.S. administration warms the...

Categories China/Money Laundering/Sanctions/Shipping sanctions
October 21, 2016

S. Korean human rights ambassador: Target N. Korean officials with sanctions

The U.N. has issued two more reports finding that North Korea’s abysmal human rights situation still hasn’t improved, and that Pyongyang refuses to even discuss it. Kim Jong-un continues to seal the borders, terrorize and purge potential dissenters, and cut off any subversive information. Camp 18 has reopened, Camps 12, 14 and 25 have expanded, and the fate of thousands of men, women, and children who were held in Camp 22 remains a mystery. How do you make the words “never...

Categories Human Rights/Sanctions

North Korea Sanctions & Policy Enhancement Act FAQ

What does the NKSPEA do? The North Korea Sanctions and Policy Enhancement Act, or NKSPEA, was signed into law by President Obama in February 2016, after North Korea’s fourth nuclear test. The NKSPEA uses targeted financial and economic sanctions to isolate Kim Jong Un and his top officials from the assets they maintain in foreign banks, and from the hard currency that sustains their rule. These assets are derived in part from illicit activities and proliferation, and are used to...

Understanding North Korea sanctions: Other Significant U.S. Statutes

Introduction Background U.N. Security Council sanctions resolutions U.S. sanctions laws U.S. sanctions Executive Orders U.S. sanctions regulations & general licenses Other significant U.S. statutes Title 12 – Trading With the Enemy Act (TWEA sanctions against North Korea were lifted in 2008) Title 18 – Criminal Code 18 U.S.C. 981 – civil forfeiture 18 U.S.C. 982 – criminal forfeiture 18 U.S.C. 1030 – computer fraud and abuse 18 U.S.C. 1956 – money laundering 18 U.S.C. 1957 – transactions in criminally derived property 18...

Understanding North Korea sanctions: Background

Introduction Background Here are the Treasury Department’s FAQs and overview of North Korea sanctions, as of 2016. U.S. and U.N. sanctions against North Korea are relatively strong on paper today, but implementation of the new authorities has been uneven, and has only just begun. Although there is much more that we can do to close sanctions loopholes, the most important priority now is to enforce the U.N. and U.S. sanctions that already exist, through a combination of law enforcement and diplomacy. North Korea...

Understanding North Korea sanctions: An explainer, links & authorities

Introduction: Why I created this page Background Until February of 2016, U.N. sanctions against North Korea were strong on paper but poorly enforced, and U.S. sanctions against North Korea were (contrary to the assumptions of many journalists and academics) comparatively weak — weaker than our sanctions against Belarus and Zimbabwe. Sanctions against North Korea strengthened considerably in 2016 with the passage in February of the North Korea Sanctions and Policy Enhancement Act, and the U.N. Security Council’s approval of Resolution...

October 14, 2016

North Korea, secondary sanctions, tertiary impacts, and the coming death spiral

As I write today, rumors are swirling through the South Korean media of defections and purges involving so many North Korean diplomats, spies, minders, workers, and other officials that I haven’t had the time to either keep up with them or sort out the conflicts in those reports. I’ll try to do that by this time next week, and identify any patterns I see in them. In the meantime, an intriguing story by the Daily NK elucidates how well-targeted sanctions can drive disloyalties and fissures...

Categories Money Laundering/Sanctions