The United States is not yet satisfied with the results of sanctions aimed at changing North Korea despite the impact the sanctions have had, a senior Treasury official said Friday.
The U.S. will watch how the situation develops with Russia, which reportedly has become one of the very few havens for North Korea to hide illicit funds, Undersecretary Stuart Levey said.
The U.S. sanctions on Pyongyang have been "more powerful than many thought possible," he said.
"I think our sanctions have had real impact, but the real goal, I think, is to see a real change in North Korea," he said at the American Enterprise Institute.
"So we are not satisfied with what has happened thus far."
Invoking Section 311 of the Patriot Act legislated in the wake of Sept. 11 terrorist attacks of 2001, the Treasury took punitive actions against Macau's Banco Delta Asia (BDA) a year ago by designating it a primary money laundering concern abetting North Korea's illicit activities.
Pyongyang is accused of counterfeiting American currency, trafficking narcotics and smuggling contraband. An investigation of North Korean accounts at the BDA allegedly turned up evidence that one of the clients, Dandong Credit Bank, was proliferating weapons of mass destruction (WMD).
North Korea denies all allegations and insists the U.S. must lift the sanctions before a resumption of the six-nation nuclear disarmament talks suspended since November last year.
"Indeed, the line between North Korea's licit and illicit money is nearly invisible," said Levey, "and the U.S. government is urging financial institutions around the world to think carefully about the risks of doing any North Korea-related business."
China is said to have stepped up vigilance against North Korean accounts in its territory, and Vietnam recently ordered an investigation into North Korea-linked accounts following Levey's visit there.
Reports said Mongolian and Singaporean authorities have also cut back or terminated their business with North Korea.
Peter Beck, head of the International Crisis Group's Seoul office, said last month that Russia is now about the only financial window North Koreans have left.
"I don't have any immediate plans to travel to Russia," Levey responded to a question about cooperative efforts with Moscow.
"But it remains to see how this develops."
Citing new challenges in fighting terrorism after the Sept. 11 attacks, the undersecretary named North Korea as one of the sources of danger.
"North Korea, the world's foremost proliferator of ballistic missile technology, continues to aggressively pursue greater nuclear weapons capabilities and continues to develop ballistic missiles of increasing sophistication and range," he said.
Pyongyang had test-fired seven missiles in early July, including a long-range Taepodong that in theory can reach the U.S. west coast.
The U.N. Security Council reacted by unanimously adopting a resolution condemning the launches.
Washington, Sept. 8 (Yonhap News)
U.S. not yet satisfied with impact of N.K. sanctions: Levey |
