The United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on two individuals and one entity involved in a network laundering millions of dollars in illicit funds generated by North Korean IT workers and cybercrime. The funds support the Democratic People’s Republic of Korea (DPRK) government. The sanctioned individuals, Lu Huaying and Zhang Jian, operated through a UAE-based front company to facilitate money laundering and cryptocurrency conversion services that directed proceeds back to Pyongyang.
These sanctions are part of ongoing efforts to disrupt the DPRK’s money laundering operations, which finance its unlawful weapons programs. This action is taken in cooperation with the United Arab Emirates government.
Bradley T. Smith, Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence, stated: “As the DPRK continues to use complex criminal schemes to fund its WMD and ballistic missile programs—including through the exploitation of digital assets—Treasury remains focused on disrupting the networks that facilitate this flow of funds to the regime.” He emphasized that “the United States, along with the UAE and our other partners, will continue to target the financial networks that enable the Kim regime’s destabilizing activities.”
Sim Hyon Sop, based in China, is identified as a key figure orchestrating these schemes. Sim operates as an agent for DPRK financial institutions like Korea Kwangson Banking Corp (KKBC), previously designated under Executive Order 13382 targeting proliferators of WMDs.
Since early 2022, Lu Huaying has converted cryptocurrency from DPRK revenue projects into fiat cash for Sim Hyon Sop. Zhang Jian also facilitated currency exchanges for Sim and acted as a courier.
Green Alpine Trading, LLC, a UAE-based front company involved in this network, is also sanctioned for supporting Sim Hyon Sop.
The sanctions block all property within U.S. jurisdiction belonging to these entities or individuals. Transactions involving them are prohibited unless authorized by OFAC. Non-U.S. persons may face penalties if they cause U.S. persons to violate these sanctions.
OFAC emphasizes that its goal is not punitive but aims at behavioral change through compliance with international norms.
