US Imposes Sanctions on North Korea After Failed Summit: "Money Laundering from North Korean Cybercrimes"

Eight North Korean Nationals and Two North Korean Institutions Targeted

Recently, after the North Korea-U.S. summit promoted by U.S. President Donald Trump was canceled, the Trump administration imposed additional sanctions on North Korea on the 4th (local time). The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced that eight North Korean nationals and two North Korean institutions involved in money laundering generated through the North Korean regime’s cybercrimes and IT worker scams have been newly designated as targets of sanctions.

The United States is working to cut off North Korea’s financial resources, stating that the regime evades sanctions and carries out international cybercrimes, using the proceeds to fund its nuclear and missile development programs.

U.S. Department of the Treasury. Photo by AP Yonhap News

According to the Department of the Treasury, Jang Gukcheol and Heo Jeongseon, North Korean nationals designated for sanctions, managed funds including virtual assets worth approximately 5.3 million dollars, some of which are linked to North Korean ransomware groups that previously targeted the United States.

Chosun Mangyongdae Computer Technology Company, a North Korean IT company, and its CEO Woo Youngsu were also added to the sanctions list. This company has operated IT workforce dispatch organizations in at least two cities, including Shenyang and Dandong in China.

Ryu Jeong Credit Bank, a North Korean financial institution, was found to have provided financial support by facilitating foreign currency remittances and money laundering to help evade sanctions between North Korea and China.

North Korean financial institution representatives based in China or Russia-including Heo Yongcheol, Han Honggil, Jeong Seonghyeok, Choi Chunbeom, and Ri Jinhyeok-were also designated for sanctions for their involvement in remittances and other financial activities on behalf of North Korean financial institutions.

Once designated as a target of Treasury Department sanctions, all assets held in the United States are frozen. Transactions with the sanctioned entities within the United States are also prohibited.

This round of sanctions by the Trump administration comes after the failed North Korea-U.S. summit during President Trump’s visit to South Korea. President Trump publicly proposed talks, stating that he was willing to meet with Kim Jong Un, Chairman of the State Affairs Commission of North Korea, during his Asia tour and could discuss sanctions on North Korea, but North Korea did not respond.

The previous day, the U.S. Department of State announced plans to seek United Nations sanctions against seven third-country vessels for violating UN Security Council resolutions on North Korea by being involved in the export of North Korean coal and iron ore to China.