CHINA/FOREIGN POLICY/NORTH KOREA: “U.S. federal prosecutors are preparing new actions targeting Chinese firms that officials say are critical financial conduits for North Korea’s government, according to people familiar with the matter, an effort that could provide muscle to the Trump administration’s plans to rein in Pyongyang’s weapons program.
The Washington U.S. attorney’s office in May obtained warrants to freeze funds of Chinese firms that were processed through U.S. banks, alleging these firms help finance North Korea’s weapons program.
Prosecutors are now moving toward building broader cases that would result in the permanent seizure of the funds, among other things. As part of the investigation, U.S. banks that froze the funds flagged additional information that prosecutors are using to build cases aimed at further squeezing the finances of the nuclear-armed state, said the people.
The warrants targeted wire transactions involving Dandong Zhicheng, which allegedly bought North Korean coal, and four related front companies that were used to buy North Korean coal with U.S. dollars, according to a judge’s order authorizing the warrants. Eight banks in the U.S. were involved in processing the transactions, according to the order. Dandong Zhicheng didn’t respond to requests for comment.”
-Aruna Viswanatha and Ian Talley, “U.S. Steps Up Actions on Chinese Firms Aiding North Korea,” The Wall Street Journal online, Aug. 21, 2017 05:45pm