| Summary/Abstract |
This study investigates North Korea’s method of circumventing financial sanctions
based on a survey of 100 Chinese firms engaged in trade with North Korea, as
well as in-depth interviews with high-ranking North Korean defectors who have
professional experiences in the financial sector. Survey results indicate that North
Korea still prefers dollar–based financial transactions in trade settlements of a
certain size. In addition, this study categorizes North Korea’s circumventing
financial transactions by five methods: transactions via bank accounts under
borrowed names, cash depositories, paper companies, joint-venture banks, and
embassies. Lastly, this research presents policy implications to enhance the
effectiveness of financial sanctions.
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