Search Results for: Banco Delta Asia

October 28, 2013

Is the next Banco Delta Asia in Malaysia?

Over the weekend, a lot people were giggling at the decision by Paul Chan, President of HELP University, to award an honorary degree in economics of Kim Jong Un. Foreign Policy’s Isaac Stone Fish, who first revealed the story, obligingly prints Chan’s manifesto, which reads like the work of a true belieber — a man who writes as if he has spent an inordinate amount of time watching High School Musical over and over again. I have fond memories of...

Categories Money Laundering/Sanctions/Useful Idiocy/WTF?
June 6, 2016

Obama Administration, GOP Congress join forces in N. Korea sanctions push in Asia

It’s a rare day in any election year, much less this one, when anyone could write a post title like that about a major public policy issue. Now, for the first time since I began writing this blog, all of the cylinders — the President, the Congress, the U.N., South Korea, and Japan — are all firing in the same sequence to raise the pressure on Pyongyang and Beijing. Over the last week, we’ve seen the Republican Congress’s key foreign...

Categories Anju Links/Money Laundering/Sanctions
April 30, 2023

British American Tobacco, North Korea, & the Bomb: Setting a New Low for How Evil a Tobacco Company Can Be

Last Tuesday, British American Tobacco, the world’s second-largest tobacco company, along with its Singaporean subsidiary, pled guilty to bank fraud and conspiracy charges and agreed to pay a combined $635 million in criminal and civil fines, penalties, and forfeitures to the Treasury and Justice Departments. The charges arise from an secret joint venture, going all the way back to 2001, in which BAT sold the North Korean government tobacco, other materials, machinery, and technical help to manufacture cigarettes, despite having said...

Categories Money Laundering/NK Crime/U.S. Law
May 28, 2020

Feds unseal 14-count indictment against 33 agents of sanctioned North Korean bank

The U.S. Attorney’s office for the District of Columbia has done it again. Today, its prosecutors unsealed indictments against 28 North Korean and 5 Chinese representatives of North Korea’s Foreign Trade Bank (FTB) who are or were posted in China, Russia, Libya, Thailand, Kuwait, and Austria. The Treasury Department’s Office of Foreign Asset Control (OFAC) designated the FTB for proliferation financing in 2013. The North Korea Sanctions Regulations later put additional restrictions on dealings with the North Korean financial industry....

Categories Money Laundering/Sanctions/U.S. Law
May 15, 2019

Judge holds Chinese banks in contempt, fines them $50K a day for failing to comply with North Korea subpoenas

If you haven’t already read my post about Chief Judge Beryl Howell’s order directing three Chinese banks to comply with federal grand jury and statutory subpoenas of their North Korea-related records, you should probably start there. Although the docket in this case is still sealed, I speculated in that post that the banks would likely appeal to the D.C. Circuit and seek a stay of the court’s order. And so they have, according to an order Judge Howell unsealed today....

Categories Money Laundering/U.S. Law
May 10, 2019

I’ll give you a topic. The final voyage of the “Wise Honest” was neither. Discuss.

The U.S. Attorney’s Office for the Southern District of New York has seized and sued to forfeit a 17,000-ton North Korean bulk carrier that was hauling neither rice, nor corn, nor milk, but coal to enrich Kim Jong-un, and machinery to keep his mines and his military-industrial complex from shutting down.1 And it was doing it with money laundered through correspondent banks in our country, in New York City. This is the great, uncharged crime of the M/V Wise Honest,...

Categories Money Laundering/Shipping sanctions/U.S. Law
February 28, 2019

How to negotiate a lasting peace in Korea, feed the hungry, and heal the sick

Let’s say you still believe in a negotiated disarmament of North Korea, something to which I assign a ten percent probability at most. Or, let’s say you don’t. Suspend your disbelief and assume that aggressive sanctions enforcement—the enforcement Kim Jong-un tricked Trump into calling off nearly a year ago—becomes a sufficient threat to the solvency and cohesion of Kim Jong-un’s regime that he comes back to the table next year, offers to submit a complete declaration of his WMD programs...

Categories Class Warfare/Democracy/Diplomacy/Sanctions/U.S. Law
December 4, 2017

Korean War II: What the Joint Statements tell us about Pyongyang’s strategy

“To see what is in front of one’s nose needs a constant struggle.” – George Orwell On June 15, 2000, Kim Dae-jung and Kim Jong-il signed a joint statement agreeing to seek “independent” reunification and an inter-Korean coalition government. It was not the first joint statement between North and South. This relatively modest one from 1972 calls for “both parties [to] promote national unity as a united people over any differences of our ideological and political systems.” In retrospect, this...

Categories Diplomacy/Korean War II
November 15, 2017

Senate Banking Committee advances the Otto Warmbier BRINK Act, Treasury blocks the Bank of Dandong

Last week, while I was writing my rave review for Donald Trump’s speech to the South Korean National Assembly, the Senate Banking Committee was working to put more tools in his hands to bankrupt the man he would never stoop to calling “short and fat.”* By a unanimous vote, the committee passed the newly renamed Otto Warmbier Banking Restrictions Involving North Korea (BRINK) Act, which I previously discussed here and here. The bill now awaits Senator McConnell’s nod to get on the full...

Categories Money Laundering/Sanctions/U.S. Law/U.S. Politics
September 13, 2017

Chinese banks are cracking down on N. Korean money laundering again. Will it last this time?

Several news sources are reporting that Chinese banks, particularly in China’s northeast, have started to freeze or close accounts held by North Korean individuals and businesses. The Daily NK, citing unnamed local sources, was the first to report this potentially important development. It says both large state-owned banks (such as the China Construction Bank) and regional banks (such as Pudong Bank) recently banned all North Koreans from opening new accounts and ordered the closure of existing accounts. It also quotes...

Categories Money Laundering/Sanctions
August 1, 2017

Maximum pressure watch: North Korea, sanctions & diplomacy

The nature of human beings is to remember dramatic events longer than methodical processes, even when the methodical process may be of equal or greater importance. That may be why North Korea watchers remember the September 2005 action against Banco Delta Asia but tend to forget the greater part of the strategy that action served: sending Stuart Levey, Daniel Glaser, and other officials on a world tour to warn bankers and finance minister to cut their ties to Pyongyang or...

Categories Diplomacy/Sanctions
July 21, 2017

What construction in Pyongyang tells us, and doesn’t tell us, about sanctions

As the Trump administration looks to sanctions, including secondary sanctions, to gain the leverage to disarm North Korea, it is natural that North Korea watchers would try to gauge the potential for sanctions to impact Pyongyang’s finances. In a place where predictions of glasnost go to die, it is natural that they would measure what the regime puts on display, like the development of Pyongyang’s skyline. And regrettably, it is natural that any analysis whose research begins and ends with...

Categories Fiskings/Sanctions
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
April 24, 2017

Former Treasury Undersecretary David Cohen on N. Korea, China, and secondary sanctions

A recurring theme in the North Korea sanctions debate is that most of those who really understand what our sanctions on North Korea do and don’t do, and how they work, think they can work against North Korea, if we ever bother to enforce them (see, e.g., Juan Zarate, Anthony Ruggiero, Peter Harrell, George A. Lopez, and Bill Newcomb). Unfortunately, the actual experts are at variance with another group, consisting mostly of academics, retired politicians, retired diplomats, and experts in other...

Categories Sanctions
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...

Categories China/Money Laundering/Sanctions/U.S. Law/U.S. Politics
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
November 29, 2016

The U.N.’s new North Korea resolution wasn’t worth the wait

Lest anyone think I’m blindly criticizing the Obama administration as it tries to cover its exit and legacy, start with my favorable comments on UNSCR 2270. That resolution might have been the baseline for a genuinely effective global sanctions program, but the text of the new resolution the Security Council will vote on tomorrow arguably lowers the high bar set by 2270. Indeed, because of our independent authority to enforce 2270 in tandem with our allies, we would have been...

Categories "United" Nations/Sanctions
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