Earlier, when we discussed Trump's latest executive order launching new sanctions on North Korea, we got a big picture of the crackdown but not the details. Moments ago, however, the White House unveiled the full breakdown of what Trump's latest crackdown on North Korea will involve.
Among other things, not only will the latest crackdown on NKorea include sanctions "on any foreign financial institution that knowingly conducts or facilitates any significant transaction on behalf of certain designated individuals and entities" but also on trade, and targets North Korea's shipping and trade networks and "issues a 180-day ban on vessels and aircraft that have visited North Korea from visiting the United States" and "also targets vessels that have engaged in a ship-to-ship transfer with a vessel that has visited North Korea within 180 days.":
Ultimately, the White House says, "foreign financial institutions must choose between doing business with the United States or facilitating trade with North Korea or its designated supporters."
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The full statement:
FINANCIAL INSTITUTIONS: The E.O. provides the authority to impose sanctions on any foreign financial institution that knowingly conducts or facilitates any significant transaction on behalf of certain designated individuals and entities, or any significant transaction in connection with trade with North Korea, on or after the date of the E.O.
- Under this new authority, the sanctions measures can be either restrictions on correspondent or payable-through accounts or blocking sanctions.
- The E.O. also provides the Secretary of the Treasury additional authority to block any funds originating from, destined for, or passing through accounts linked to North Korea that come within the United States or possession of a U.S. person.
- Foreign financial institutions must choose between doing business with the United States or facilitating trade with North Korea or its designated supporters.
TRADE: The E.O. directly targets North Korea's shipping and trade networks and issues a 180-day ban on vessels and aircraft that have visited North Korea from visiting the United States. This ban also targets vessels that have engaged in a ship-to-ship transfer with a vessel that has visited North Korea within 180 days. North Korea is dependent on its shipping networks to facilitate international trade.The E.O. also authorizes the Secretary of the Treasury, in consultation with the Secretary of State, to impose sanctions on persons involved in:
- Industries: The construction, energy, financial services, fishing, information technology, manufacturing, medical, mining, textiles, or transportation industries in North Korea;
- Ports: Ownership, control, or operation of any port in North Korea, including any seaport, airport, or land port of entry;
- Imports/Exports: at least one significant importation from or exportation to North Korea of any goods, services, or technology.
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In conclusion, it is clear that this move is aimed at another crackdown on Russia: with media reports already suggesting that Russia has been "feeding" North Korea by ship, we estimate that within a week, "news" will emerge that Russia has broken Trump's executive order, and that will serve to block out one or more Russian financial institutions, perhaps growing to "SWIFT" out the entire Russian banking system as Trump slowly but surely follows the MIC's escalation script to a tee.