Blacklisted China Bank Cited as a North Korea Conduit to Global Finance

Based in a northeastern limit city of Dandong, by that a bulk of North Korea’s trade with China flows, Bank of Dandong is small, with 5 branches, 1,570 staff, and resources of 72.3 billion yuan ($10.66 billion).

Advertisement

Continue reading a categorical story

But according to a U.S. Treasury, Pyongyang has used it as a pivotal passage to a U.S. financial system.

“As of mid-February 2016, North Korea was regulating bank accounts underneath fake names and conducting financial exchange by banks located in China, Hong Kong, and several southeast Asian countries,” it said. “The primary bank in China was Bank of Dandong.”

North Korea is theme to U.N. Security Council sanctions over a chief and ballistic barb programs.

The U.S. Treasury on Thursday also authorised China’s Dalian Global Unity Shipping Co Ltd, as good as dual Chinese citizens.

Bank of Dandong and a China Banking Regulatory Commission did not respond to faxes seeking comment. China’s unfamiliar method pronounced it opposes sanctions outward a U.N. framework.

Newsletter Sign Up

Continue reading a categorical story

MISSILE TECHNOLOGY

In early 2016, accounts during Bank of Dandong were used to promote millions of dollars of exchange on interest of companies concerned in a buying of ballistic barb technology, a Treasury department’s Financial Crimes Enforcement Network (FinCEN) pronounced in a filing on Thursday.

In particular, Korea Kwangson Banking Corp (KKBC) and a front association for Korea Mining Development Trading Corp (KOMID) confirmed mixed bank accounts with Bank of Dandong, a filing said. The U.N. describes KOMID, that it has sanctioned, as North Korea’s principal arms dealer.

“I consider vital state-owned banks and shipping companies have particularly implemented a sanctions, though a smaller ones still find opportunities to make income wherever they can,” pronounced Zhao Tong, a associate during a chief process module during a Carnegie-Tsinghua Center for Global Policy in Beijing.

Bank of Dandong processed some-more than $2.5 billion in U.S. dollar exchange between May 2012 and May 2015 by a U.S. match accounts, including during slightest $786 million in patron exchange for businesses and individuals, FinCEN said.

Advertisement

Continue reading a categorical story

“The bearing of U.S. financial institutions to North Korea’s unlawful financial activity around Bank of Dandong outweighs concerns for any legitimate business activity during a bank,” FinCEN pronounced in a filing.

Last September, a minority shareholder in a bank, Dandong Hongxiang Industrial Development Co, and 4 of that firm’s executives, were authorised by a United States underneath U.S. regulations targeting proliferators of weapons of mass destruction.

At a time, U.S. authorities sought to seize Hongxiang supports in accounts during a handful of state-owned Chinese lenders, including Bank of Dandong as good as Industrial and Commercial Bank of China, China Construction Bank, and Agricultural Bank of China, that are among a world’s largest banks.

Based on FinCEN’s analysis, Bank of Dandong processed approximately $56 million by U.S. banks for Hongxiang between Oct 2012 and Dec 2014, according to Thursday’s filing. Hongxiang is no longer a shareholder in a bank.

(Additional stating by Matthew Miller and Josephine Mason; Editingby Bill Tarrant)

Continue reading a categorical story

About admin