Peacekeeping: A United Nations First

Archives

May 1, 2009: In response to North Korea's recent ballistic missile tests, the UN has, for the first time, imposed sanctions on individual firms for arms embargo violations. In this case, it's North Korean companies (owned by the state) associated with North Korea's missile program. The three firms, Korea Mining Development Trading Corp., Tanchon Commercial Bank and Korea Ryongbong General Corp., had already been sanctioned by the United States. This was particularly troublesome for the North Koreans, as the U.S. has been using its ability to enforce its will on the world banking system, to make it more difficult for these three firms to operate internationally.

North Korea always responds that these sanctions and legal bans do little damage. But that is not true. At the very least, the North Koreans have to pay additional fees and bribes to move money internationally. The scrutiny is also unwelcome, since it has, in the past, uncovered illegal operations (like drug smuggling, and smuggling in general, currency counterfeiting and so on) that the North Koreans would rather keep quiet. It's gotten so bad that, recent negotiations over halting North Korean nuclear and missile programs, usually involve demands that  North Korea be freed from many of the banking restrictions.

 

 

X

ad

Help Keep Us From Drying Up

We need your help! Our subscription base has slowly been dwindling.

Each month we count on your contributions. You can support us in the following ways:

  1. Make sure you spread the word about us. Two ways to do that are to like us on Facebook and follow us on Twitter.
  2. Subscribe to our daily newsletter. We’ll send the news to your email box, and you don’t have to come to the site unless you want to read columns or see photos.
  3. You can contribute to the health of StrategyPage.
Subscribe   Contribute   Close