Voice of America:
A new study by the United Nations Security Council details how North Korea has effectively evaded international sanctions in the last decade. The study comes as the Council prepares to vote on new sanctions against the secretive and authoritarian state.
The report, written by a U.N. panel that oversees sanctions violations, acknowledges that the four rounds of increasingly stronger U.N. measures imposed on North Korea since 2006, have failed to persuade the Kim Jong Un government to abandon its nuclear and ballistic missiles program.
Given North Korea’s recent nuclear test and satellite launch, and its insistence that its nuclear program is needed to deter the U.S. threat, the report says “there are serious questions about the efficacy of the current United Nations sanctions regime.”
The U.N. report documents a number of cases where North Korea has evaded sanctions, and reveals how it continues to use the international financial system, airlines and container shipping routes to trade in prohibited items.
Lack of cooperation
A 2006 U.N. resolution requires member states to report all inspections of North Korean cargo suspected of carrying arms or other products that have military purposes, even if no violation is found. But in the last ten years only one member has filed a report.
Southeast Asia, Africa and the Middle East, the report notes, continues to sell North Korea banned military hardware, such as unmanned aerial vehicle components and radar systems.
The government of Myanmar was less than cooperative with the U.N. panel when contacted about the possible involvement of Myanmar-based entity Soe Min Htike in attempts to ship aluminum alloy rods to North Korea. The aluminum rods, which can be used to make nuclear centrifuges, were seized in Japan while in transit in 2012.
Front companies
The Korea Mining Development Trading Corporation (KOMID) was designated in April 2009 as a main exporter of North Korean goods and equipment relating to ballistic missiles and conventional weapons.
But KOMID has been able to circumvent sanctions on its operations by using a different name and working though the Hong Kong shipping company Leader International.
The China-based Dalian Union International Trading knowingly engaged in trade prohibited under U.N. sanctions by working through a bank account held by the Sunny International Development Company, registered in Hong Kong.
“They adopted concealment techniques such as the use of foreign intermediaries, front company networks and incomplete documentation,” said the U.N. report.
In 2015, Britain informed the panel about an attempt by North Korea to buy miniaturized optical equipment for drones through intermediaries based in China and registered in Hong Kong.
Richard Wang (Dewen Wang in Chinese), director of HK Conie Technology, was listed on the export license application for the drone parts.
The U.N. panel identified a trade relationship between HK Conie and a North Korean entity called Korean Pioneer Technology Company Ltd., which reportedly used the alias Korea 21 Trading Company.
Misleading documentation
In 2013, a member state seized suspected cargo on its way from Beijing to Cairo.
Documentation listed a North Korean company, Ryongsong Trading Co Ltd, as the shipper and an Egyptian company, MODA Authority International Optronic, as the consignee.
The cargo was labeled as “machine spare parts”, including relays, “coils,” connectors and voltage circuit breakers commonly used in commercial fishing ships.
Upon closer inspection the U.N. Panel found these items were spare parts used in Scud-B missile systems.
Examining the wreckage
In 2014, the U.N. panel examined a North Korean drone that crashed on a South Korean border island and concluded it was likely made by one of two Chinese companies.
Manufacturers in the Czech Republic and Canada also make components used in the Chinese made unmanned aerial vehicles (UAVs).
An examination of the debris of a North Korean Unha-3 rocket launched in 2012 revealed the involvement of a Taipei-based company, the Royal Team Corporation (RTC).
The report explained complicated payment schemes used to get around sanctions.
The panel found that North Korea tried to hide its illicit dealing with RTC by sending payments through a third party company that it ostensibly paid to host a trade show.
