The United States Department of the Treasury, through its Office of Foreign Assets Control (OFAC), has taken action against a network that helped North Korea move money gained through unlawful activities. The Treasury announced sanctions on two entities and eight individuals for their involvement in laundering funds linked to the Democratic People’s Republic of Korea (DPRK). These funds were connected to activities that supported North Korea’s weapons of mass destruction (WMD) and ballistic missile programs.
The sanctions cut the named individuals and entities off from the U.S. financial system. The objective of the U.S. government is to stop the movement of money that DPRK has been using to develop prohibited weapons programs, despite multiple global restrictions already in place.
The Treasury highlighted that North Korea continues to depend on illegal channels to gather income. These include cyber theft, foreign worker schemes, and hidden financial networks.
Entities and Individuals Sanctioned
One of the sanctioned entities is Korea Mangyongdae Computer Technology Company (KMCTC). KMCTC is a North Korean information technology (IT) company that sends IT workers abroad to earn foreign income. These workers were placed in at least two cities in China. The company helped set up employment for these IT workers and then arranged for their earnings to be collected and secretly sent back to North Korea. KMCTC played a role in managing these operations and concealing the origin of the funds.
The second sanctioned entity is Ryujong Credit Bank, a bank linked to North Korea’s financial system. The bank supported activities that were designed to help North Korea avoid international sanctions. It facilitated the movement of money between China and North Korea and helped process foreign currency for North Korean organisations.
In addition to the two entities, eight individuals were sanctioned for their involvement in supporting these financial networks. These individuals helped open accounts, moved funds across borders, managed transactions, and assisted entities that helped DPRK access money from other countries.
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How the Illicit Money Movement Operated
The sanctioned network helped North Korea move illegally earned money across borders. A major source of these funds was cyber theft. In the past three years, DPRK-linked hackers stole more than three billion dollars from financial platforms, cryptocurrency systems, and companies worldwide. The stolen money was then routed through multiple layers to hide where it came from.
To make the funds appear legal, the network used foreign bank accounts, third-party operators, and false documents. Ryujong Credit Bank helped transfer and convert these funds, particularly between China and North Korea, allowing access to foreign currency despite sanctions.
North Korea also earned money by sending IT workers overseas under false identities or through front companies. Their salaries were secretly channelled back to North Korea. KMCTC managed these worker teams, arranged their placements, and collected the earnings to send back home, helping the country secure foreign income under restrictions.
Impact of the Sanctions
The U.S. Treasury stated that the sanctions were introduced to directly disrupt the financial pathways that North Korea relies on to generate income from restricted and unlawful activities. With these sanctions in place, any assets connected to the named individuals and entities that come under U.S. reach will be frozen. They are no longer allowed to conduct any financial activity involving U.S. banks, companies, or individuals.
The move adds to ongoing international efforts to limit DPRK’s access to funds that support prohibited programs. By blocking key financial links, the sanctions aim to weaken the systems that have allowed DPRK to maintain income despite global restrictions.
The action sends a clear message that networks supporting prohibited financial activity linked to DPRK will continue to face scrutiny and restrictions.