U.S. Imposes Sanctions on Key North Korean Front Companies and Cyber Espionage Unit
Washington D.C. - New Sanctions Against North Korea
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced new sanctions against several key entities and individuals linked to North Korea, including front companies and a cyber espionage unit.
Targeted Entities and Individuals
- Choe Un Hyok: Representative of the Korean Union of Democratic Workers’ Federations (KUDB), who coordinated payments to an entity subordinate to the U.S. and UN-designated Munitions Industry Department.
- Jang Myong Chol: Representative of the Korea Central Bank (KCB) in China, responsible for facilitating transactions worth hundreds of thousands of dollars.
- Choe Song Chol and Im Song Sun: Individuals who generated revenue for the North Korean government through the exportation of workers, representing front companies for the UN- and U.S.-designated Military Armistice Commission (MOP).
- Kimsuky: A cyber espionage unit subordinate to the UN- and U.S.-designated Reconnaissance General Bureau (RGB), responsible for malicious cyber activities that support North Korea’s strategic and nuclear ambitions.
Purpose of Sanctions
The sanctions are intended to disrupt North Korea’s ability to generate revenue and fund its illicit activities. As a result, all property and interests in property of the designated individuals and entities that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC.
Consequences for Foreign Financial Institutions
Foreign financial institutions that knowingly facilitate significant transactions with the designated individuals or entities could be subject to correspondent or payable-through account sanctions.
Treasury Department’s Goal
“The ultimate goal of these sanctions is not to punish, but to bring about a positive change in behavior,” said a Treasury Department spokesperson. “We will continue to work tirelessly to disrupt North Korea’s illicit activities and support international efforts to promote peace and stability on the Korean Peninsula.”
Broader Effort Against North Korea’s Cyber Threats
The designations are part of a broader effort by the U.S. government to combat North Korea’s cyber threats and illegal activities, including its use of front companies and cyber espionage units.
Additional Resources
- OFAC Press Release: [link]
- Guidance on the North Korean Cyber Threat: [link]
- Joint Cyber Advisory DPRK Using Social Engineering to Enable Hacking: [link]
- North Korea Ballistic Missile Procurement Advisory: [link]
- FinCEN Advisory on North Korea’s Use of the International Financial System: [link]
Identifying information on the sanctioned individuals and entities can be found here.