North Korea’s Illicit Shipping Tactics
The article highlights North Korea’s illicit shipping practices aimed at evading sanctions imposed by the UN and US. The Foundation for Defense of Democracies (FDD) research analyst, Mathew Ha, shares insights into Pyongyang’s tactics to exploit global supply chains and generate revenue for its nuclear and missile programs, as well as personal gains.
Key Tactics for Evasion
One key tactic employed by North Korea is frequent changes to vessel identity, including flying foreign flags of convenience, renaming vessels, and altering ownership and management. This allows them to avoid detection and conduct transactions undetected. Another method involves manipulating the Automatic Identification System (AIS), which enables vessels to travel to ports or meet other ships without being detected.
Ship-to-Ship Transfers and New Developments
Ship-to-ship transfers, banned by UN Security Council Resolution 2375, remain a common tactic. The governments of Japan, US, Australia, and others have reported instances of North Korean ships transferring sanctioned goods, such as oil and coal, to other vessels that then offload the cargo at ports. The UN Panel of Experts has also documented this evidence in its latest report.
A new development revealed by the UN Panel is the use of larger barges and bulk-carrier vessels to reduce trips, conduct direct delivery services, and potentially eliminate the need for ship-to-ship transfers. However, this does not mean North Korea will cease conducting such transfers, according to the Panel’s evidence.
Broader Revenue Generating Schemes
Mathew Ha assesses that these illicit tactics are successful in evading sanctions, which is crucial for Pyongyang as it seeks to generate revenue amid major sanctions campaigns against its nuclear weapons and ballistic missile programs, human rights violations, and other issues. However, these maritime tactics are not the only components of Pyongyang’s revenue-generating schemes.
The regime also explores sanctions-busting schemes through other sectors, such as banking and financial institutions allowing access to the international financial system for illicit transactions. Additionally, state-backed hackers conduct cybercrime against virtual currency exchanges and traditional financial institutions to generate income on behalf of the regime.
Conclusion and Recommendations
The global shipping industry is vulnerable to North Korea’s illicit tactics, which can compromise security and integrity. Sanctions enforcement agencies must remain vigilant and adapt to new tactics to prevent evasion. The international community must work together to disrupt Pyongyang’s revenue streams and pressure the regime to comply with sanctions.
Overall, the article highlights the complexity and sophistication of North Korea’s illicit shipping practices aimed at evading sanctions. It underscores the need for continued vigilance and cooperation among sanctions enforcement agencies to prevent evasion and disrupt Pyongyang’s revenue streams.
Original Article: Shining a light on North Korea’s illicit shipping and sanctions evasion practices — Maritimefairtrade