The US Department of State revealed a grand jury indictment on Thursday against North Korea’s Foreign Trade Bank’s (FTB) employees for evading US sanctions. The US has charged 28 North Korean and 5 Chinese citizens for processing “at least $2.5 billion in illegal payments via 250 front companies” in countries like Kuwait, China, Russia, Austria, and Thailand. The alleged crimes also include money laundering and bank fraud.
The US added the FTB to its sanctions list in 2013, and the United Nations Security Council followed suit in 2017. The individuals, if convicted, would have to give up all property and money related to the laundered amount.
Relations between Washington and Pyongyang have been tense after the stalling of denuclearization talks between US President Donald Trump and North Korean leader Kim Jong Un.
US government officials allege that some of the funds were directed towards enhancing North Korea’s nuclear weapons program. Michael Sherwin, the acting United States Attorney said that the indictment signified the US’ “commitment to hampering North Korea’s ability to illegally access the U.S. financial system and limit its ability to use proceeds from illicit actions to enhance its illegal WMD and ballistic missile programs”. Previously, in 2016, the US also banned the export of financial services from the US to North Korea without authorization to curb the development of the country’s weapons programs.
The UN has imposed sanctions on North Korea since 2006, which have strengthened over the years in an effort by the international community to limit Pyongyang’s nuclear program. However, the UN has accused the country for extensively violating sanctions over the years to bolster its nuclear capabilities and increase illegal exports.
Sanctions have been an important tool for the United States in achieving its domestic and international policy objectives. And North Korea is not the only nation that has been subjected to the restrictive measures over nuclear capability concerns. The US reinstated debilitating sanctions on Iran after President Donald Trump abandoned the Iran nuclear deal two years ago, which provided some relief from the restrictions in return for limits on the country’s nuclear program. Just yesterday, US Secretary of State Mike Pompeo announced that the US will end the remaining sanctions waivers (under the 2015 deal) that allow Chinese, Russian, and European firms to work with Iran on civil nuclear projects. Pompeo said that a 60-day “wind-down period” will be granted to these companies to allow them to cease operations.
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