ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconFacebook IconIcon FacebookGoogle Plus IconLayer 1InstagramCreated with Sketch.Linkedin IconIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerIcon Opinion QuotePositive ArrowIcon PrintRSS IconIcon SearchSite TitleTitle ChevronTwitter IconIcon TwitterYoutube Icon
N Korea at crossroads

US imposes North Korea-related sanctions on Chinese tech firm

Russian subsidiary also cited for facilitating illicit funding

U.S. Treasury Secretary Steven Mnuchin announced in February what he said was the largest North Korea-related sanctions in a bid to disrupt North Korean shipping and trading companies. The latest sanctions seek to further isolate Pyongyang.   © Reuters

WASHINGTON (Reuters) -- The United States on Thursday imposed sanctions on a China-based tech firm, its North Korean CEO and a Russian subsidiary, accusing them of moving illicit funding to North Korea in violation of U.S. sanctions.

The new sanctions target China-based Yanbian Silverstar Network Technology Co, its North Korean chief executive Jong Song Hwa, and a Russian-based sister company, Volasys Silver Star, the U.S. Treasury Department said in a statement.

"These actions are intended to stop the flow of illicit revenue to North Korea from overseas information technology workers disguising their true identities and hiding behind front companies, aliases, and third-party nationals," Treasury Secretary Steven Mnuchin said in a statement.

Mnuchin warned companies across the globe "to take precautions to ensure that they are not unwittingly employing North Korean workers for technology projects."

The Trump administration has maintained pressure on Pyongyang through sanctions in an effort to convince North Korea to give up its nuclear weapons, which are a threat to the United States. President Donald Trump met North Korean leader Kim Jong Un in June at a summit in Singapore where Kim agreed in broad terms to work toward denuclearization of the Korean peninsula. North Korea has however given no indication it is willing to give up its weapons unilaterally, as the Trump administration has demanded.

Washington has also accused Russia of violating U.N. sanctions on North Korea by granting work permits to North Korean laborers despite Russia's denial of any such actions.

Get unique insights on Asia, the most dynamic market in the world.

Offer ends September 30th

You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month

Subscribe to get unlimited access to all articles.

Get unlimited access
NAR site on phone, device, tablet

{{sentenceStarter}} {{numberReadArticles}} free article{{numberReadArticles-plural}} this month

Stay ahead with our exclusives on Asia; the most dynamic market in the world.

Benefit from in-depth journalism from trusted experts within Asia itself.

Try 3 months for $9

Offer ends September 30th

Your trial period has expired

You need a subscription to...

See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

See all offers
NAR on print phone, device, and tablet media