The Chinese company acted as front company to quietly move funds through the U. S. for a major North Korean bank that’s under sanctions, U. S. prosecutors say.
The Chinese trading firm acted as a front company to quietly move funds through the U. S. financial system for Foreign Trade Bank, a major North Korean lender that’s under sanctions, U. S. prosecutors said Thursday.
The announcement adds to U. S. pressure on China to do more to clamp down on North Korea, which has dodged international sanctions designed to stop money being funneled into its nuclear weapons program.
The U. S. prosecutors said their move to take $1.9 million from the Chinese company, Mingzheng International Trading, is « one of the largest seizures of North Korean funds by the Department of Justice. »
Related: How North Korea makes its money: Coal, forced labor and hacking
CNN wasn’t able to reach Mingzheng for comment Friday. A phone number listed for the firm in the northeastern Chinese city of Shenyang no longer works. The local commerce bureau didn’t respond to calls seeking a functioning number.
Previous investigations by the United Nations and the U. S. have also found evidence they say shows North Korea is using networks of front companies to gain access to global banks.
