Banks Begin Hunt for North Korean Front Companies

North Korea uses elaborate network of front companies to circumvent sanctions

North Korean soldiers look toward the south while a U.S. solider (front) stands guard with a South Korean soldier in the truce village of Panmunjom in the Demilitarized Zone on the border between North and South Korea, on Oct. 27. JUNG YEON-JE/AFP/GETTY IMAGES

The North Korean communist regime uses a global network of front companies to make purchases and conduct business, evading U.N. sanctions. International banks are now trying to identify and cut ties with these companies.

The U.N. Security Council recently passed two rounds of sanctions against North Korea at the behest of the Trump administration. China, North Korea’s largest supporter, has agreed to enforce these sanctions.