U.S. Announces New Sanctions on N. Korea, Iran

June 30, 2009— -- The United States announced a flurry of new sanctions Tuesday on North Korean and Iranian entities said to be aiding Pyongyang's nuclear and missile programs.

"We have, I think, been fairly explicit with the North Koreans about what -- the responsibilities that they entered into that we expect them to live up to. And I think today's action demonstrates the seriousness of what we intend to do to address it," White House spokesman Robert Gibbs told reporters.

"They've stated a lot of bellicose things. They've threatened to do certain things. A lot of times what they've threatened to do they follow up on doing. But this administration, whether it is, through sanctions and our monitoring of North Korea … cutting off any potentially harmful financing," Gibbs added.

The Treasury Department today sanctioned Hong Kong Electronics, based on Iran's Kish Island, for providing support to North Korea's missile program through North Korea's Tanchon Commercial Bank and Korea Mining Development Corp. (KOMID). Both of those had been previously designated under the UN resolution passed in 2006.

Separately, the State Department targeted North Korea's Namchongang Trading Corporation (NCG), a company tied to North Korea's nuclear program.

"It has been involved in the purchase of aluminum tubes and other equipment specifically suitable for a uranium enrichment program since the late 1990s," the State Department said today in a statement.

"North Korea uses front companies like Hong Kong Electronics and a range of other deceptive practices to obscure the true nature of its financial dealings, making it nearly impossible for responsible banks and governments to distinguish legitimate from illegitimate North Korean transactions," said Stuart Levey, undersecretary for terrorism and financial intelligence, in a statement issued by Treasury.

"Today's action is a part of our overall effort to prevent North Korea from misusing the international financial system to advance its nuclear and missile programs and to sell dangerous technology around the world," Levey added.

The moves come on the eve of Ambassador Philip Goldberg's trip to Asia to push for the enforcement of UN sanctions on North Korea passed after their 2006 and 2009 nuclear tests, though the State Department insists the timing was coincidental.

Goldberg leaves today for China, where he'll be for the next several days, and then will continue on to other stops in the region. He leads a team of National Security Council, Treasury, and other United States officials trying to galvanize global enforcement of the UN sanctions to squeeze North Korea.

The Treasury Department says since 2007 Hong Kong Electronics has "transferred millions of dollars of proliferation-related funds on behalf of Tanchon and KOMID," and "facilitated the movement money from Iran to North Korea on behalf of KOMID."

KOMID is North Korea's main arms dealer and exporter of goods related to ballistic missiles and conventional weapons. According to the Treasury department, Tanchon is its financial arm. Tanchon has been tied to Iran's Bank Sepah, already sanctioned under another UN resolution for its involvement in Iran's nuclear program.

"The U.S. has reason to believe that the Tanchon-Bank Sepah relationship has been used for North Korea-Iran proliferation-related transactions," Treasury said today.