ScholarWorks@숙명여자대학교

초록

This paper attempts to review US financial sanctions against North Korea which is based on the US Patriot Act Section 311 and is executed by Financial Crime Enforcement Network(FinCEN). FinCEN’s designation of North Korea as a Jurisdiction of Primary Money Laundering Concern in November 4, 2016 obligated financial institutions, either they are incorporated in the US jurisdiction or just a subsidiary or an agent of foreign financial institutions in the US, to conduct due diligence to see whether their clients are North Korea or North Korea related individuals or entities and to see whether the transactions they handle benefits North Korea or North Korea related individuals or entities and to report it. This paper concludes that the FinCEN sanction has a better chance to bring meaningful results than other means of sanctions because it can be carried out with flexibility without much diplomatic considerations. Besides, since it uses US and foreign banks, it can be more effective to cut financial relations of the target and to isolate it. In particular, in case of North Korea, since FinCEN sanction can have less government involvement, it can have a better chance of limiting Chinese government's opposition to the sanctions.

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