September 13, 2019
North Korea’s Sanctions-Busting Gets More Sophisticated—and More Lucrative
As a United Nations report revealed earlier this month, North Korea continues to dodge international sanctions and raise money for its nuclear weapons program, despite attempts to bar it from the global financial system. The report from the panel of experts charged by the U.N. Security Council with overseeing enforcement of U.N. sanctions on North Korea conclusively shows how Pyongyang capitalizes on an old method of sanctions-busting—smuggling—and a much newer one: hacking. In both cases, its tactics are getting more innovative.
When it comes to smuggling, North Korea’s use of ship-to-ship transfers continues to circumvent sanctions “unabated,” including through previously unreported methods. North Korea has been so successful in importing refined petroleum that the U.N. report said there are no current shortages of gasoline or diesel fuel within the country. Meanwhile, Pyongyang has used increasingly sophisticated cyberattacks “to steal funds from financial institutions and cryptocurrency exchanges,” the report warned, allowing it “to evade financial sanctions and generate income in ways that are harder to trace.” In both cases, North Korea relies on jurisdictions that lack either the will or the ability to stop it.
Read the full article in World Politics Review.
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