US Imposes Sanctions on Four Entities and One Individual Involved in Illegal Cyber Activities Supporting North Korea

Background

The United States has taken a decisive step in its efforts to pressure North Korea over its nuclear program and human rights abuses by imposing sanctions on four entities and one individual involved in illegal cyber activities that support the country’s government. The sanctions were announced by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) in a statement.

Sanctioned Entities and Individual

The sanctioned entities include:

• Chinyong Information Technology Cooperation Company, also known as Jinyong IT Cooperation Company, which is associated with North Korea’s Ministry of Peoples’ Armed Forces. The company has been employing delegations of North Korean IT workers in Russia and Laos.
• Kim Sang Man, a North Korean national who has been involved in the payment of salaries to family members of Chinyong’s overseas worker delegations. He has also received cryptocurrency funds transfers from IT teams located in China and Russia valued at over $2 million USD.

Purpose of Sanctions

The sanctions were imposed under Executive Order 13687, which targets entities that generate revenue for North Korea’s government or military. The purpose of these sanctions is not to punish but to bring about a positive change in behavior. According to OFAC, the agency is willing to remove individuals and entities from its sanctions list consistent with the law.

Impact of Sanctions

The sanctions impose significant restrictions on transactions with these individuals and entities, and foreign financial institutions that knowingly facilitate significant transactions or provide significant financial services for them may be subject to U.S. correspondent or payable-through account sanctions. The ultimate goal of these sanctions is to bring about a positive change in behavior and to reduce North Korea’s ability to generate revenue through illegal means.

Broader Efforts

The sanctions come as part of a broader effort by the United States and other countries to pressure North Korea over its nuclear program and human rights abuses. In May, the United Nations Security Council imposed new sanctions on North Korea after it launched two intercontinental ballistic missiles in July.

Response from North Korea

In response to the sanctions, North Korea has threatened to take unspecified “physical” action against the United States and South Korea. However, analysts say that the sanctions are likely to have a significant impact on North Korea’s ability to generate revenue through illegal means.

Conclusion

The sanctions imposed by the United States are a significant step in its efforts to pressure North Korea over its nuclear program and human rights abuses. The sanctions will likely have a significant impact on North Korea’s ability to engage in illegal cyber activities and generate revenue through fraudulent means.