Tag: sanctions

Has China Finally Gotten Serious With Sanctions on North Korea?

| March 9, 2016

At least on the surface for international consumption it appears that China has finally gotten serious with implementing sanctions on the Kim regime, but I have to wonder how stringently they will stop all the black market and shady ways they can move money and goods into North Korea?:

north korea nuke

Even before the Security Council passed Resolution 2270, the UN’s harshest sanctions on North Korea, Chinese officials acted. Industrial and Commercial Bank of China, China’s largest bank, reportedly froze the accounts of North Korean customers in Dandong, the Chinese city across the Yalu River from the North. It appears Bank of China, China Merchants Bank, and Bank of Dandong also dropped North Koreans.

After 2270, China put 31 of Pyongyang’s vessels on a “blacklist” and prevented one of them from docking. Two others are now sailing away from Chinese ports.

Because at least 75 percent of the North’s trade is with China, Beijing could bring down its ally if it continues to enforce the Security Council’s new measures.

The Kim regime, therefore, could be confronted with “an existential crisis,” Scarlatoiu says. Wu Dawei, China’s always discreet point man on North Korea, seems to agree. In comments made a few days ago to Pulse News, a South Korean site, he said the North “signed its own death warrant.”The Kimster, therefore, has much to think about. One thing we know: He’s not going to sit back and accept his demise. So what will he do?  [Daily Beast]

The whole article is worth reading at the link.

Philippines Impounds First North Korean Ship Under New UN Sanctions

| March 7, 2016

Something I have been saying should be done for a long time is to seize ships caught violating UN sanctions and then sell them off to pay reparations to the families of people kidnapped or killed in provocations or terrorism launched by the Kim regime in the past.  The cost of having to replace seized ships would definitely hurt the Kim regime’s bottom line while serving as a deterrent to third countries trying to smuggle goods into North Korea:

The Philippines will impound a suspected North Korean cargo ship docked at a port northwest of Manila and eventually deport its North Korean crewmen in compliance with tough new U.N. Security Council sanctions on Pyongyang over its latest nuclear test and rocket launch, officials said Saturday.

Presidential Communications Undersecretary Manolo Quezon III said the U.N. sanctions would be applied to the MV Jin Teng, which arrived Thursday at Subic Bay, a former U.S. naval base that’s now a key commercial port. The ship has 21 North Korean crewmen.

“Our obligation is essentially to impound the vessel and not allow it to leave port and that the crew must eventually be deported,” Quezon said in a radio interview.

The 4,355-ton vessel is among 31 ships listed as being North Korean owned and that should be held under an “assets freeze” order, Philippine Foreign Assistant Secretary Gary Domingo said.  [Associated Press]

You can read more at the link.

Will China Actually Enforce UN Sanctions They Supposedly Support?

| February 27, 2016

Call me skeptical that the Chinese will actually inspect all cargo cross their border into North Korea and enforce these sanctions:

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The United States presented a draft resolution on North Korea to the United Nations Security Council on Thursday. The resolution, which would tighten sanctions on Pyongyang, represents the culmination of nearly two months of negotiations between the United States and China, beginning just after North Korea’s nuclear test on January 6. As The Diplomat reported previously, final agreement on the resolution came during Chinese Foreign Minister Wang Yi’s trip to Washington, D.C. this week, where he met with Secretary of State John Kerry, National Security Advisor Susan Rice, and President Barack Obama.

Reuters has details on the new draft, which is expected to go to a vote this weekend. Notably, the new draft would require mandatory inspections of all cargo en route to or from North Korea; ban all military sales to Pyongyang (including both weapons and items with dual-use potential); and ban the sale of aviation or rocket fuel to North Korea.

However, David Feith, writing in an op-ed for the Wall Street Journal, points out that Beijing’s agreeing to the sanctions doesn’t necessarily mean much. After all, China doesn’t have a good track record of actually enforcing UN sanctions.  [The Diplomat]

You can read more at the link.

Going After the Kim Regime’s Money Supply

| February 23, 2016

That is what another expert, Nah Liang Tuang (PhD) is an Associate Research Fellow at the Institute of Defense and Strategic Studies, is recommending in this Diplomat Op-ed piece.  Professor Nah also believes that quiet diplomacy could get the Chinese to restrict oil supplies into North Korea as well to further pressure the regime:

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Consequently, if any new UNSC resolutions are going to be as limp wristed as the previous four, it might be advisable for the U.S. along with its regional allies, Japan and South Korea, to begin actively targeting anyinternational bank accounts identified as being linked with Pyongyang’s elites, irrespective of their links to the DPRK’s nuclear or missile establishment. As in the case of the $25 million in North Korea funds deposited in Macau’s Banco Delta Asia, which was frozen in late 2005 at the behest of the U.S. on money laundering allegations, so too could action be taken against accounts privately held by Pyongyang’s upper crust. In this manner, Washington, Tokyo and Seoul could actively ferret out the slush funds and retirement accounts of Kim Jong-un’s inner circle, and any bigwigs who walk the corridors of power.

Once identified, American, Japanese and South Korean representatives could then request that these covert nest eggs be frozen while being investigated for money laundering, failure to comply with this request resulting in the boycotting of the aforesaid bank by the U.S., Japanese and South Korean governments along with the companies of these wealthy nations. Considering that Pyongyang was and probably still is involved in the counterfeiting of U.S. currency, counterfeit cigarettes, narcotics production/smuggling and other shady businesses, it would be a fair bet that many of these accounts are part of the money laundering chain in the Kim regime’s criminal enterprises. With resultant legal action taken against the offending accounts, and the realization amongst the DPRK’s elite that their financial reserves overseas are under threat, Kim Jong-un would have a harder time maintaining his rule as the DPRK’s oligarchical system encounters difficulty securing the welfare of those at its apex.

Finally, if quiet diplomacy with Beijing can secure Chinese cooperation, Kim Jong-un might be reminded of the Kim dynasty’s vulnerability with a short interruption in the supply of Chinese oil. [The Diplomat]

You can read more at the link.

North Korea Sanctions Bill Headed Towards President’s Desk

| February 15, 2016

Over at One Free Korea there is a post up that discusses some of the inside baseball involved with the passing of the North Korea sanctions bill that is set to hit the President’s desk.  I found it interesting that Senator Rubio had such an interest in North Korea that he read the entire bill and left his own track changes comments.  Even Senator Feinstein has come out in strong support of the bill:

north korea nuke

By now, most of you know that the North Korea Sanctions and Policy Enhancement Act, the Senate’s version of H.R. 757, passed the Senate unanimously Wednesday night. The House is expected to pass the Senate’s version this morning and send it to the President’s desk.

In an election year, when floor time is especially precious, it was remarkable and humbling that the Senate spent an entire day debating this bill. Senator after senator came to the floor to give supportive speeches. If you read only one of them, read the moving speech of Senator Diane Feinstein (D, CA) about human rights, but be warned — this is the stuff of nightmares, and not for children’s eyes.

The speeches should be available on video here within the next few days.  [One Free Korea]

You can read the rest at the link, but the house approved the Senate’s bill with a vote of 408-2.  It appears that how to deal with North Korea has more bipartisan support now then even how to deal with ISIS.

Will the US Implement Banco Delta Asia Type of Sanctions on North Korea?

| February 10, 2016

For the Banco Delta Asia type of sanctions to work the US must be willing to play hardball with Chinese banks and cut them off from the international financial system:

banco delta asia

The United States does not rule out imposing sanctions on North Korea similar to the 2005 financial restrictions that had almost cut off the communist nation from the international financial system, the White House spokesman said Monday.

“I wouldn’t rule out additional steps like that,” White House press secretary Josh Earnest said at a briefing in response to a question whether unilateral sanctions the U.S. is currently considering against Pyongyang would be different from the 2005 measures.

At that time, the Treasury Department blacklisted a Macau bank. The measure not only froze North Korean money in the bank named Banco Delta Asia, but also scared away other financial institutions from dealing with Pyongyang for fear they would also be blacklisted.

That resulted in the North getting almost cut off from the international financial system.  [Yonhap]

You can read more at the link, but One Free Korea has a great analysis of the sanctions options that Congress in considering.

China Preventing Harsh UN Sanctions Against North Korea

| February 2, 2016

Until the Chinese government changes its mind that a nuclear North Korea is a less a threat than a destabilized North Korea they are going to continue to stop harsh sanctions against the Kim regime.  This ultimately only encourages the Kim regime to advance their nuclear and missile programs and commit further provocations:

Apart from the more hard-line thinkers in Washington, virtually no one wants to have to deal with what might happen if concerted international action were to actually destabilize Kim Jong Un’s regime, however strongly they may feel about its human rights record, authoritarian government and militantly defiant attitude toward Washington, Tokyo, Seoul and anyone else it sees as a threat.

U.S. Secretary of State John Kerry ran into that wall this week during talks in Beijing with Chinese Foreign Minister Wang Yi. After meeting for more than four hours Wednesday, Kerry expressed his frustration with what the United States sees as China’s failure to do more to rein in Pyongyang, noting that “more significant and impactful sanctions were put in place against Iran, which did not have a nuclear weapon than against North Korea, which does.”

“All nations, particularly those who seek a global leadership role, or have a global leadership role, have a responsibility to deal with this threat,” Kerry said.

In response, Wang said China, which is North Korea’s most important ally, chief trading partner and a key source of economic assistance, agreed on the need for a new U.N. resolution. But he suggested Beijing would not support new penalties even though it condemned the Jan. 6 test.

“Sanctions are not an end in themselves,” Wang said bluntly. “The new resolution should not provoke new tension in the situation, still less destabilize the Korean Peninsula.”  [Associated Press]

You can read more at the link.