Former North Korean diplomat charged with U.S. sanctions evasion

Thomas Maresca
·2 min read
UPI
The U.S. Justice Department charged a former North Korean diplomat with 20 counts of economic sanctions evasion, bank fraud and international money laundering, according to an indictment unsealed on Tuesday. File Photo by Stephen Shaver/UPI

April 17 (UPI) -- A former North Korean diplomat serving in Thailand was indicted on 20 counts of economic sanctions evasion, bank fraud and international money laundering, the U.S. Justice Department said.

According to an indictment unsealed on Tuesday, diplomat Ri Myong Ho arranged for shipments of goods to North Korea using U.S. dollar wire transfers without receiving a license from the U.S. Treasury Department.

Starting around February 2015, Ri used his position at the North's embassy in Thailand to negotiate shipments to North Korea via front companies and co-conspirators in Thailand and Malaysia, the indictment said.

Ri and his co-conspirators directed the shipments through Dalian, China, in order to conceal the intended destinations of the goods.

"As a result, U.S. financial institutions unknowingly processed multiple U.S. dollar transactions for the benefit of North Korea," the indictment said.

"This defendant allegedly skirted the sanctions put in place to protect our national security," U.S. Attorney Matthew Graves said. "He is also alleged to have thwarted U.S. banking laws, so that he could conduct business for North Korea, a foreign government that is determined to unlawfully expand its nuclear program."

Ri is charged with one count of conspiracy to violate the International Emergency Economic Powers Act, one count of conspiracy to commit bank fraud and 18 counts of international money laundering.

North Korea has long used its overseas embassies as fronts for commercial activities and illicit trade, according to the United Nations.

"Diplomats of the Democratic People's Republic of Korea continue to play a key role in sanctions evasion," a 2019 report by a U.N. Security Council Panel of Experts concluded, citing activities such as facilitating illegal shipments of goods and using bank accounts and diplomatic transfers to send funds back to the North.

Democratic People's Republic of Korea is the official name of North Korea.

More recently, North Korea has turned to hacking and cybercrime to fund its illicit weapons program, with an estimated $3 billion generated from cyberattacks, according to the panel's latest annual report.

Russia is also helping North Korea evade international sanctions amid growing military ties, the United States says. Last month, Moscow vetoed a Security Council resolution to renew the mandate of the Panel of Experts, which monitors the sanctions regime.

U.S. Ambassador to the United Nations Linda Thomas-Greenfield said Wednesday that Washington and its allies were discussing options "both inside and outside the U.N. system" to continue overseeing sanctions against the North.