07
Apr
16

North Korea and the Panama Papers

The Panama Papers are a massive data leak from the tax-avoidance specialist firm, Mossack Fonseca (MF). And even the most amateur North Korea watcher knows that where ever there is secrecy and grey legal areas you are sure to find North Korea lurking around trying to make illicit trade deals and otherwise hanging out with like-minded criminals and criminal states.

So far it seems that MF acted on behalf of

at least 33 company shareholders, directors and other beneficiaries who were under sanctions by the U.S. Treasury department, the European Union and the United Nations”.

North Korea is being highlighted in two cases. The first is DCB Finance involving British banker Nigel Cowie and North Korean official Kim Chol Sam. The company is alleged to have helped finance North Korea’s weapons programmes. Nigel apparently moved to North Korea 1995 and lived there for a decade, which means he was there when the famine was at its worst and in 2003 when North Korea announced its withdrawal from the Non-Proliferation Treaty. He denies any knowledge of any illegal dealings. Hmmm.

(Source: GlobalZero.org)

MF did end its relationship with DCB in 2010 after someone suggested they look at their own paperwork showing that the company was registered in Pyongyang. One employee acknowledge that this ‘should have been a red flag’. Though to be fair, when you’re dealing with tax-avoiding elites, corrupt officials, dictators and other nefarious characters and countries it can hard to spot an actual sanctioned company from the ones which should be sanctioned.

(Source: Washington Post)

The other case involves two Australian-based men who apparently set up two companies which announced mining deals with North Korea and registered on the Australian Stock Exchange. An ex-UN official on the UN Security Council Panel of Experts for North Korea sanctions spoke to the ABC in Australia to clarify that “the deals involved North Korean entities under sanctions” and that he was “absolutely stunned” by the lack of attention paid, presumably by the Australian authorities, to the public announcements of the companies mining deals.

But of course it’s not just North Korea accessing the services of MF. In South Korea, 195 individuals have been identified so far. This includes former President Roh Tae-woo’s son, Roh Jae-heon. He’s claiming that he never did anything with the companies. Hmmm.

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