Sanctions
Red Flags
Misc
Payment Schemes
Case Study
100
Prohibit certain defined transactions, and sometimes travel, within the country’s territory.
What is Country Based Sanctions?
100
Example: Company A imports coal from North Korea without prepaying for it and resells to its coal customer. Company A collects payments in US dollars. Then, North Korea sends payment instructions to Company A for items it wants the company to purchase for the regime. The items are usually unrelated to the North Korean's entity's’ LOB. What is Company A?
What is a Front Company?
100
The USA Patriot Act is an acronym for what?
What is the "Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act"?
100
North Korea _____________ (such as coal, iron, ore, and minerals) to China-based companies. The Chinese companies then sell the natural resources to the Asian markets.
What is sells/exports natural resources?
100
Acts as a conduit for North Korea by facilitating millions of dollars of transactions for companies involved in North Korea’s weapons of mass destruction and ballistic missile programs
What is Bank of Dandong?
200
Target persons or groups who pose a threat to national security, foreign policy, and the economy .
What is List-Based Sanctions /Smart Sanctions?
200
What province in China is most known for its connection to North Korea?
What is Liaoning Province?
200
What Sanction Program or Agreement did North Korea agree to halt operations at its nuclear facilities and the US agreed to provide oil shipments and to construct 2 proliferation resistant light-water nuclear reactors?
What is the Agreed Framework of 1994?
200
The way in which Chinese companies divide their payments into smaller outflows in a complex manner directly to front companies, shell companies, shipping and trade businesses often registered in Hong Kong, is part of what phase in AML?
What is layering?
200
What organization laundered US dollars on behalf of sanctioned North Korean banks that were seeking to procure petroleum products?
What are Velmur Management Pte Ltd. and Transatlantic Partners Pte Ltd?
300
Use the strength of the US financial system as leverage to further national security measures .
What is Secondary Sanctions ?
300
Financial activity transacted through these companies can often occur in cycles, whereby one company (Company A) will pay a common beneficiary for a period of time and then cease payments. Once Company A ceases making payments, a different company (Company B, which shares an address with Company A), pays the same beneficiary.
What is the activity described?
What is Surge Activity Cycles?
300
An institution had financial AML concerns which lead to approximately $24 million of North Korean assets frozen.
What is Banco Delta Asia (BDA)?
300
What is the process of disguising the proceeds of crime and moving value through the use of trade transactions in an attempt to legitimize their illicit origins?
What is Trade-based money laundering?
300
What organization is alleged for utilizing front companies to facilitate transactions in order to hide KKBCs presence from correspondent banks in the US?
What is Dandong Hongxiang Industrial Development Co. Ltd. (DHID)?
400
During what years was North Korea listed on the state sponsored terrorism list?
What is 1988-2008?