North Korea slapped with new sanctions

The Obama administration says a government agency is financing slush funds for the country's leaders

By Matthew Lee
Published November 18, 2010 6:35PM (EST)

The Obama administration is slapping new sanctions on a North Korean government agency accused of illicitly financing slush funds for the communist country's reclusive leadership.

The Treasury on Thursday added the Korea Daesong Bank and Korea Daesong General Trading Corporation to its financial blacklist. The move freezes any assets the companies may have in U.S. jurisdictions and bans Americans from doing business with them.

Treasury said both are key components of "Office 39," a secretive bureau that raises money for senior North Korean leaders by producing, smuggling and distributing narcotics, and laundering money. It said the bureau also handles the import of luxury goods for top North Korean leader Kim Jong Il, his family and associates.

Matthew Lee

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