US judge demands Chinese bank records of North Korea payments totalling US$105 million
- Redacted court documents showed subpoenas were for records of dealings between a now-defunct Hong Kong-based front company and a North Korean state-run entity
- The transactions would be in violation of international sanctions aimed at pressing Pyongyang to give up its nuclear weapons
A US district judge has ordered three Chinese banks to comply with US investigators’ demands that they hand over records connected to the alleged movement of tens of millions of dollars in violation of international sanctions on North Korea.
In a heavily redacted court opinion released by the US Justice Department on Tuesday and dated March 18, Beryl Howell, Washington’s chief federal district judge, said the subpoenas were for records of dealings between a now-defunct Hong Kong-based front company and a North Korean state-run entity.
It said the Chinese government had ownership stakes in all three of the banks, the first two of which have branches in the United States.
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According to the court document, the subpoenas demanded a wide range of bank records dating back to January 2012.
The document highlighted transactions totalling US$105.34 million, including US$45.78 million that went through a US correspondent account of the first Chinese bank; US$1.63 million that went through a correspondent bank account of the second bank, and US$57.93 million that went through a US correspondent account of the third.
The judge’s ruling said US Justice Department officials visited China in April and August last year to discuss the failure of the banks to respond to the requests for evidence.
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The documents were not produced and in November, US prosecutors filed a court motion seeking to compel the banks to comply.
Judge Howell ordered the first two banks to produce the records promptly or testify before a grand jury. She ordered the third bank to produce the subpoenaed records by March 28. It was not clear how or if the banks responded.
China is North Korea’s neighbour and main trading partner but has committed to enforcing international sanctions aimed at pressing Pyongyang to give up its nuclear weapons.
Beijing has also said it opposes unilateral sanctions outside the UN framework, and has accused Washington of using “long-arm” jurisdiction in targeting Chinese entities.
