The Treasury Department on Monday sanctioned a Chinese industrial machinery wholesaler and four individuals in an attempt to rein in North Korea’s nuclear program.
Treasury is sanctioning Dandong Hongxiang Industrial Development Company Ltd (DHID) for acting on behalf of Korea Kwangson Banking Corporation (KKBC) to provide financial services in support of North Korea’s nuclear program. The U.S. previously sanctioned KKBC for assisting Pyongyang’s efforts to build nuclear weapons.
“Today’s action exposes a key illicit network supporting North Korea’s weapons proliferation,” said Adam J. Szubin, acting under secretary for terrorism and financial intelligence at Treasury.
“DHID and its employees sought to evade U.S. and U.N. sanctions, facilitating access to the U.S. financial system by a designated entity. Treasury will take forceful action to pressure North Korea’s proliferation network and to protect the U.S. financial system from abuse.”
The four individuals Treasury targeted are: Ma Xiaohong, Zhou Jianshu, Hong Jinhua, and Luo Chuanxu for acting on behalf of DHID. The sanctions bar DHID and the four individuals from engaging in any financial transactions or interests in property with U.S. persons or within the U.S.
In addition, the Justice Department unsealed criminal charges against DHID, as well as Xiaohong, Jianshu, Jinhua and Chuanxu for conspiring to evade U.S. economic sanctions and to launder “money instruments.”
Justice announced the filing of civil forfeiture actions for all funds contained in 25 bank accounts belong to DHID and its “front companies,” and issued a request for a restraining order be sent to China for “all of the funds based upon the allegation of the United States that the funds represent property involved in money laundering.”
The U.S. is taking the action just days after North Korea’s foreign minister criticized the United States for flying supersonic bombers over South Korea last week, and vowed to continue to build its nuclear capabilities in defiance of multiple United Nations Security Council resolutions.
Pyongyang claimed that the B-1B bombers the U.S. flew over South Korea crossed the heavily fortified demarcation line separating the two Koreas. The U.S. said one of the bombers approached the demarcation line but did not cross it.
The U.S. flyover was the second in two weeks, and two weeks after North Korea conducted its fifth and most powerful nuclear test.
