The US Justice Department charged North Korea’s state-owned bank of avoiding sanctions laws imposed by Washington. It took action against 28 North Korean and five Chinese citizens. This is the largest move related to North Korean sanctions violations.
US prosecutors charged North Korea-based Foreign Trade Bank
(FTB) of conspiring with employees to cause other lenders to process about $2.5
billion in illegal payments with the help of more than 250 front companies.
The US blacklisted the FTB seven years ago. The UN Security
Council did the same about three years ago.
The Justice Department’s indictment adds to increasing
tensions between the US and North Korea after agreements on denuclearization
stagnated.
Acting US Attorney Michael Sherwin said that Washington “has signified its commitment to hampering North Korea's ability to illegally access the U.S. financial system and limit its ability to use proceeds from illicit actions to enhance its illegal WMD and ballistic missile programs.”
A US official revealed that about $2.5 billion was directed to North Korea’s nuclear weapons program. The transactions took place in China, Libya, Russia, and Thailand. Many of those charged are former bank employees, including two former FTB presidents and two co-vice presidents.