Chinese Company Accused Of Money Laundering For North Korea
A Chinese-based company has been accused of acting as a front for laundering money on behalf of a sanctioned North Korean bank by the US.
It filed a complaint seeking $1.9 million from it, U.S. prosecutors said on Thursday.
Mingzheng International Trading Limited has facilitated prohibited dollar transactions through the United States on behalf of the Foreign Trade Bank, a North Korean bank, and laundered the proceeds.
This is according to the U.S. Attorney's Office in the District of Columbia.
The $1.9 million forfeiture action "represents one of the largest seizures of North Korean funds by the Department of Justice," it said.
The sum was transacted in 2015 by Mingzheng, based in the Chinese city of Shenyang, via wire transfers, using their Chinese bank accounts.
In March 2013, the U.S. Treasury Department placed the Foreign Trade Bank under sanctions linked to proliferation of weapons of mass destruction.
It described the bank as a state-owned entity that "acts as North Korea's primary foreign exchange bank," the U.S. prosecutors' statement said.