New Sanctions Against North Korean Financial Institutions
On November 4th, the Office of Foreign Assets Control (OFAC), a branch of the U.S. Department of the Treasury, unveiled a fresh set of sanctions targeting several bankers and financial institutions linked to North Korea. This initiative is aimed at individuals and entities alleged to be complicit in the laundering of funds to support the regime’s nuclear armament efforts, specifically by handling cryptocurrency gains from cybercriminal activities.
North Korea’s Cybercrime Activities
Over recent years, North Korea has reportedly pilfered in excess of $3 billion in digital currencies through a range of cyber attacks, including those utilizing harmful software and social engineering tactics. This marks a significant increase compared to similar illicit actions by other nations.
Individuals Targeted by Sanctions
Among those facing sanctions are North Korean bankers Jang Kuk Chol and Ho Jong Son, who allegedly oversee financial operations for the sanctioned First Credit Bank; this includes misappropriated cryptocurrency amounting to around $5.3 million.
Complex Financial Maneuvers
According to the Treasury Department, North Korea has orchestrated a sophisticated network of financial maneuvers that involves a range of banks, shell corporations, and international financial bodies, notably in Russia and other locations. This network facilitates money laundering, theft of cryptocurrency, and attempts to skirt international sanctions.
Warnings to Businesses
The U.S. has issued earlier warnings to businesses regarding the risks posed by North Korean IT personnel who may be embedding themselves within financial systems to conduct illicit operations.
