US sanctions Chinese nationals for funding North Korea’s weapons

The United States has sanctioned two Chinese nationals and a UAE-based firm for laundering millions to support North Korea’s weapons programs. This action follows the blacklisting of 19 entities tied to Pyongyang’s missile activities and troop deployments to Russia.

According to the U.S. Department of the Treasury, Lu Huaying and Zhang Jian, operating through UAE-based Green Alpine Trading, facilitated funds that were funneled back to North Korea via Sim Hyon Sop, a China-based banking representative for Korea Kwangson Banking Corp. The funds were used to develop ballistic missiles and other weapons of mass destruction (WMD).

“North Korea continues to exploit global financial systems through agents and proxies, including fraud and digital asset theft,” said Acting Under Secretary for Terrorism and Financial Intelligence Bradley T. Smith. “Treasury remains focused on disrupting the networks that fund these programs.”

The sanctions freeze U.S.-based assets of the individuals and entities, with potential enforcement actions against anyone dealing with them.

“This is a clear message that the global financial system cannot be weaponized for illicit activities,” Smith added. “We will not relent in targeting these schemes, especially as North Korea deepens its destabilizing activities.”

North Korea’s ties to Russia have also come under scrutiny. The U.S. and South Korea estimate that more than 10,000 North Korean soldiers are assisting Russia in its war against Ukraine. Though neither Vladimir Putin nor Kim Jong Un has confirmed this, officials warned of growing collaboration between the two nations.

South Korea announced additional sanctions targeting three North Korean military officers and a missile developer involved in aiding Russia. “North Korea’s weapons programs and their support for Russia are unacceptable,” South Korea’s Foreign Ministry stated.

The United States, joined by 10 nations including the U.K., France, Japan, and members of the European Union, issued a joint statement condemning North Korea-Russia ties “in the strongest possible terms.”