As a United Nations report revealed earlier this month, North Korea continues to dodge international sanctions and raise money for its nuclear weapons program, despite attempts to bar it from the global financial system. The report from the panel of experts charged by the U.N. Security Council with overseeing enforcement of U.N. sanctions on North Korea conclusively shows how Pyongyang capitalizes on an old method of sanctions-busting—smuggling—and a much newer one: hacking. In both cases, its tactics are getting more innovative.
When it comes to smuggling, North Korea’s use of ship-to-ship transfers continues to circumvent sanctions “unabated,” including through previously unreported methods. North Korea has been so successful in importing refined petroleum that the U.N. report said there are no current shortages of gasoline or diesel fuel within the country. Meanwhile, Pyongyang has used increasingly sophisticated cyberattacks “to steal funds from financial institutions and cryptocurrency exchanges,” the report warned, allowing it “to evade financial sanctions and generate income in ways that are harder to trace.” In both cases, North Korea relies on jurisdictions that lack either the will or the ability to stop it.
Read the full article in World Politics Review.
More from CNAS
VideoWeaponized Interdependence – Economic Networks, Sanctions, and State Coercion
Contrary to traditional arguments that globalization and economic interdependence will lead to increasing international cooperation, this episode discusses how states can weap...
By Elizabeth Rosenberg
VideoSaudi Arabia Moving Forward With Plans To Sell Shares Of Aramco
Saudi Arabia says it's going ahead with plans to sell shares of the state oil company, Aramco. It's a long-delayed effort to raise money for the monarchy's reform program but ...
By Rachel Ziemba
CommentaryWhy corporate America needs to have a code of conduct for China
The dispute between China and the National Basketball Association after Houston Rockets general manager Daryl Morey tweeted support for the Hong Kong protestors is the highest...
By Peter Harrell
CommentaryTrump’s Use of Sanctions Is Nothing Like Obama’s
Two and a half years into Donald Trump’s presidency, there is no doubt that economic sanctions are his administration’s foreign-policy weapon of choice. From China to Iran to ...
By Peter Harrell