How has North Korea managed to raise the vast sums of money needed to develop its nuclear weapons, despite the ironclad international sanctions? The answer may lie deep within the murky world of global casinos. Over the past decade, North Korea has skillfully exploited the casino system, weaving an intricate web of money laundering that has continuously fueled its nuclear program. Today, let’s pull back the curtain on this transnational “gambling game” and see how North Korea has quietly made its moves on the world’s gambling tables.
The Road to Survival
Since North Korea’s first nuclear test in 2006, the UN Security Council and various countries have progressively intensified economic sanctions against it, delivering heavy blows to its channels for obtaining nuclear funds. By 2015, North Korea’s traditional sources of foreign exchange had been almost completely cut off, with its foreign currency income plummeting sharply. However, nuclear and missile development is a bottomless pit that consumes vast amounts of money. Kim Jong-un urgently needed a stable source of “fresh US dollars.” It was under these circumstances that casinos came into North Korea’s focus. The casino industry generates massive cash flows and is relatively loosely regulated, making it an ideal channel for Pyongyang to evade financial oversight and launder illicit funds. As early as after the Cold War, North Korea had begun experimenting with casino finance in places like Macao. Although the 2005 Macao Delta Asia Bank case temporarily forced North Korea to withdraw, the power and risks of money laundering through casinos also made Pyongyang keenly aware of its significance.
The Money Laundering Magic
North Korea or its proxies bring illicit gains (such as cryptocurrency stolen by hackers or smuggling proceeds) into casinos. Through the path of “cash—chips—cash,” after a few rounds of formal betting, the tainted money is transformed into “legitimate” gambling winnings. In particular, in regions where the gambling industry is highly developed but anti-money laundering systems are weak, large bets and cashing out chips are almost unregulated. North Korea has exploited these loopholes to launder dirty money. In addition to the casinos themselves, North Korea also relies on underground money exchanges and cross-border remittance networks to move funds. Casinos and underground financial systems are interdependent. Criminal gangs use underground remittance agents and shadow accounts to quickly move gambling funds across different jurisdictions. For example, US dollars cashed out from casinos in Southeast Asia can be channeled through underground routes to North Korea or third-country accounts, bypassing the international banking system to achieve secret fund allocation. With the rise of cryptocurrency, North Korea has also turned its attention to online casinos and digital currency. Online gambling platforms and cryptocurrency exchanges offer new ways to handle large sums of electronic funds. North Korean IT personnel actively participate in the development of illegal online casinos and gambling apps, accepting bets from gamblers worldwide over the internet and completing money laundering in the virtual world. These websites often use cryptocurrencies like Bitcoin and Tether for transactions, transfer funds through anonymous wallets, and then cash them out through over-the-counter trading to avoid financial regulation.
Secret Deployment
Southeast Asia is one of the fastest-growing regions for the gambling industry, with countries like the Philippines, Cambodia, and Laos competing to open casino resorts. For North Korea, this is a land of opportunity. The booming gambling industry and relatively weak regulation, coupled with the presence of various gangs and corrupt officials, provide an ideal environment for money laundering. In the 2016 Bangladesh central bank heist, most of the $81 million stolen by North Korean hackers was quickly transferred to casino accounts in the Philippines and laundered with the help of casino intermediaries. Cambodia, which has maintained relatively friendly relations with North Korea for years, has become a key hub for North Korea’s secret economic activities. Pyongyang has stationed a large number of business personnel in places like Phnom Penh, engaged in businesses such as catering and tourism, while secretly earning foreign exchange for the country. The 2020 exposure of the case involving North Korean agent Kim Chol-sok revealed just the tip of the iceberg of North Korea’s network in Cambodia. This intelligence officer, dispatched by the Reconnaissance General Bureau of North Korea, had been running multiple hotels, restaurants, and casinos in Cambodia for years. His casino business not only served ordinary gamblers but was also likely a platform for North Korea to launder money and raise funds.
North Korea has also actively expanded its secret economic activities in Africa, the Middle East, and other regions, exploiting governance loopholes and regulatory blind spots to engage in illegal fundraising under the guise of legitimate business. Although there is currently no direct evidence that North Korea operates casinos in Africa, similar illegal financial activities exist in other industries. Given the extent of North Korea’s arms sales, labor dispatch, and construction projects in Africa, it is not inconceivable that it could profit from casinos. Russia, which shares a border with North Korea and has a special relationship with it, selectively enforces measures under the UN sanctions framework. Some Russian border cities have legal gambling zones that attract gamblers, including Chinese citizens. North Korea and Russia have long had economic cooperation in the gray areas. It remains to be seen whether casinos play a role in this. At least from public information, North Korean officials and wealthy individuals have been spotted in casinos in Russia’s Far East. What’s more, in 2018, Russian law enforcement authorities shut down an underground casino in Moscow, which was shockingly located within the jurisdiction of the North Korean embassy in Moscow.
评论
发表评论