US Treasury Sanctions More North Koreans Over Crypto Laundering

By Mark Hunter

11 hours agoWed Dec 18 2024 10:15:14

Reading Time: 2 minutes

• The U.S. Department of the Treasury has sanctioned a North Korean digital assets laundering network
• The sanctions target individuals and entities facilitating illicit financial activities for the DPRK
• These actions aim to disrupt North Korea’s funding of unlawful weapons programs 

The U.S. Treasury Department has taken action against a network of individuals and entities laundering virtual assets for North Korea. This move, the fifth such action against citizens of the rogue nation this year, is part of an ongoing effort to combat the financing of the DPRK’s weapons of mass destruction and ballistic missile programs. By imposing sanctions, the US aims to cut off critical revenue streams and protect the international financial system, although the efficacy of the attempt seems questionable.  

Sanctions Target Illicit Financial Network

News of the latest round of North Korean sanctions came through a press release from the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), which has identified key individuals and entities enabling the DPRK to launder virtual currencies. These actors allegedly converted digital assets into fiat currency, bypassing international sanctions to fund North Korea’s weapons programs.  

Brian E. Nelson, Under Secretary for Terrorism and Financial Intelligence, commented on the purpose of the network:

The DPRK’s use of illicit facilitation networks to access the international financial system and generate revenue using virtual currency for its unlawful weapons of mass destruction and ballistic missile programs directly threatens international security.

International Collaboration and Enforcement

The Treasury’s actions align with efforts by international partners to disrupt the financial networks supporting North Korea’s destabilizing activities. By sanctioning these entities , the US hopes to isolate them from global financial systems and discourage further illicit transactions. The designated individuals and entities will face asset freezes and bans on transactions with US persons, effectively severing their access to the international financial system.  

This enforcement underscores the US government’s dedication to countering rogue regimes’ use of financial systems for illegal activities. With so many sanctions being issued this year alone, the program appears to be working, but there is an argument that it is like cutting off the head of a hydra in that two grow back each time you do.