US indicts five Chinese and 28 North Koreans over US$2.5 billion in illegal funds for Pyongyang’s nuclear programme
- They are accused of acting as agents of the country’s Foreign Trade Bank in what would be the largest such sanctions violations case ever
- Transactions took place in China, Russia, Libya and Thailand, and many of those charged were bank employees, including two ex-presidents
The US government has charged more than two dozen North Koreans and five Chinese individuals with facilitating over US$2.5 billion in illegal payments for Pyongyang’s nuclear and missile programmes, US media reported Thursday.
According to a 50-page indictment, the individuals have been accused of acting as agents of North Korea’s Foreign Trade Bank – its primary foreign currency bank, which is under sanctions – in what would be the largest North Korean sanctions violations case charged by the United States, The Washington Post reported.
The agents allegedly set up more than 250 front companies and covert bank branches around the world to mask payments transiting the US financial system, the newspaper said, attributing the charging documents.
The newspaper also said the charges reveal the extent to which China has helped the illicit network. Since early 2016, all UN member states are supposed to have expelled local branches of North Korean banks, but such branches have continued operating in Beijing and Shenyang, China, according to The Washington Post.
“Through this indictment, the United States has signified its commitment to hampering North Korea’s ability to illegally access the US financial system and limit its ability to use proceeds from illicit actions to enhance its illegal WMD and ballistic missile programmes,” Acting United States Attorney Michael R. Sherwin said in a statement.
A total of 33 people have been charged, including two former presidents and two former co-vice presidents of the Foreign Trade Bank. The transactions took place in China, Russia, Libya and Thailand, and many of those charged were bank employees.
Since 2015, the US government has seized US$63 million tied to the investigation.
The move comes as US negotiations with North Korea over its nuclear programme have stalled following a series of meetings between US President Donald Trump and North Korean leader Kim Jong-un.
Additional reporting by Reuters
