U.S. and UN Sanctions Specific to North Korea Target a Range of Activities That Include Proliferation of Weapons of Mass Destruction and Transferring Luxury Goods

U.S. EOs specific to North Korea and the Iran, North Korea, and Syria  Nonproliferation Act (INKSNA) authorize the United States to impose  sanctions targeting activities that include weapons of mass destruction  proliferation, trade in arms and related materiel, and transferring luxury  goods. UNSCRs target similar activities, and under the UN Charter,  all 193 UN member states are required to implement sanctions imposed  by the UNSCRs, such as travel bans, on North Korean and other persons  involved in these activities. Process for Imposing Sanctions Related to North Korea

U.S. officials informed GAO that obtaining information on North Korean  persons has hindered the U.S. interagency process for imposing  sanctions, and that a recent EO has provided them with greater flexibility  to sanction persons based on their status as government or party officials  rather than evidence of specific conduct. State and Treasury impose sanctions following an  interagency process that involves reviewing intelligence and other  information to develop evidence needed to meet standards set by U.S.  laws and EOs, vetting possible actions within the U.S. government,  determining whether and when to sanction, and announcing sanctions  decisions. Since 2006, the United States has imposed sanctions on 86  North Korean persons, including 13 North Korean government officials  and entities, under EO 13687. The UN process for imposing sanctions on  North Korea or related persons relies on a Security Council committee  and a UN panel of experts that investigates suspected violations of North  Korea sanctions and recommends actions to the UN. The panel has  found North Korean persons using illicit techniques to evade sanctions  and trade in arms and related material and has designated 32 North  Korean or related entities for sanctioning since 2006, including a North  Korean company found to be shipping armaments from Cuba to North  Korea. However, while the UN calls upon member states to submit  reports describing the steps or measures they have taken to implement  effectively specified sanctions provisions, fewer than half have done so. Member state delegates to the UN Security Council and U.S. officials  agree that the lack of reports from all member states is an impediment to  UN sanctions implementation. The United States has complied with UN reporting provisions calling on member states  to submit implementation reports. U.S. officials and representatives of the committee agree that the lack of  detailed reports from all member states is an impediment to the UN’s  effective implementation of its sanctions. Recommendation for Executive Action

GAO recommends the Secretary of State work with the UN Security  Council to ensure that member states receive technical assistance to help  prepare and submit reports on their implementation of UN sanctions on  North Korea. Officials from the Department of State, the Department of the Treasury,  and other sources identified the following factors that may influence the  types of sanctions imposed by the United States and the UN on these  countries. Appendix II: Objectives, Scope, and Methodology

This report (1) identifies the activities that are targeted by U.S. and United  Nations (UN) sanctions specific to North Korea, (2) describes how the  United States implements its sanctions specific to North Korea and  examines the challenges it faces in doing so, and (3) describes how the  UN implements its sanctions specific to North Korea and examines the  challenges it faces in doing so. We also interviewed officials from the  Department of State (State), the Department of the Treasury (Treasury),  and the UN to confirm the universe of North Korea–specific sanctions.
Why GAO Did This Study

North Korea is a closely controlled society, and its regime has taken actions that threaten the United States and other United Nations member states. North Korean tests of nuclear weapons and ballistic missiles have prompted the United States and the UN to impose sanctions on North Korea.
GAO was asked to review U.S. and UN sanctions on North Korea. This report (1) identifies the activities that are targeted by U.S. and UN sanctions specific to North Korea, (2) describes how the United States implements its sanctions specific to North Korea and examines the challenges it faces in doing so, and (3) describes how the UN implements its sanctions specific to North Korea and examines the challenges it faces in doing so. To answer these questions, GAO analyzed documents from the Departments of State, Treasury, and Commerce, and the UN. GAO also interviewed officials from the Departments of State, Treasury, and Commerce, and the UN.

What GAO Found

U.S. executive orders (EO) and the Iran, North Korea, and Syria Nonproliferation Act target activities for the imposition of sanctions that include North Korean (Democratic People's Republic of Korea) proliferation of weapons of mass destruction and transferring of luxury goods. The EOs and the act allow the United States to respond by imposing sanctions, such as blocking the assets of persons involved in these activities. United Nations (UN) Security Council resolutions target similar North Korean activities, and under the UN Charter, all 193 UN member states are required to implement sanctions on persons involved in them.
U.S. officials informed GAO that obtaining information on North Korean persons has hindered the U.S. interagency process for imposing sanctions, and that EO 13687, announced in January 2015, provided them with greater flexibility to sanction persons based on their status as government officials rather than evidence of specific conduct. State and Treasury impose sanctions following an interagency process that involves: reviewing intelligence and other information to develop evidence needed to meet standards set by U.S. laws and EOs, vetting possible actions within the U.S. government, determining whether to sanction, and announcing sanctions decisions. Since 2006, the United States has imposed sanctions on 86 North Korean persons, including on 13 North Korean government persons under EO 13687.
Although UN sanctions have a broader reach than U.S. sanctions, the UN lacks reports from many member states describing the steps or measures they have taken to implement specified sanctions provisions. The UN process for imposing sanctions relies on a UN Security Council committee and a UN panel of experts that investigates suspected sanctions violations and recommends actions to the UN. The Panel of Experts investigations have resulted in 32 designations of North Korean or related entities for sanctions since 2006, including a company found to be shipping armaments from Cuba in 2013. While the UN calls upon all member states to submit reports detailing plans for implementing specified sanctions provisions, fewer than half have done so because of a range of factors including a lack of technical capacity. The committee uses the reports to uncover gaps in sanctions implementation and identify member states that require additional outreach. The United States as a member state has submitted all of these reports. UN and U.S. officials agree that the lack of reports from all member states is an impediment to the UN's implementation of its sanctions.
Source: GAO | GAO-15-485

What GAO Recommends

GAO recommends the Secretary of State work with the UN Security Council to ensure that member states receive technical assistance to help prepare and submit reports on their implementation of UN sanctions on North Korea. The Department of State concurred with this recommendation.