UK Government Warns of North Korean IT Workers Laundering Cash for Pyongyang Regime

The UK government has raised alarms over North Korean IT workers covertly securing jobs at British firms to funnel cash to the Pyongyang regime. According to the Office of Financial Sanctions Implementation (OFSI), these workers often disguise themselves “as freelance third-country IT workers” to evade detection.

“It is almost certain that UK firms are currently being targeted by Democratic People’s Republic of Korea IT workers,” the OFSI stated. These individuals are reported to primarily operate from Russia and China, but they are also active in other regions, including parts of Asia, Africa, and Latin America.

North Korean workers are known to pursue positions in areas such as:

- IT support

- Graphic design

- Software development

- Animation

The UK sectors most impacted include:

- Information Technology

- Electronic Money Institutions

- Professional Services

- Cryptocurrency

To conceal their North Korean origins, these workers utilize fake identities and virtual private networks (VPNs). The government expressed concern that these individuals may opt for alternative payment methods, such as cryptocurrency exchanges, which further elevates the risk of money laundering and sanctions evasion.

UK banks have been advised to be vigilant, with instructions to file a Suspicious Activity Report (SAR) with the National Crime Agency if they suspect any money laundering activity.

Under U.N. sanctions, North Koreans are barred from earning money abroad. Additionally, the UK has imposed its own sanctions, making it illegal for British companies to hire or pay North Korean workers. Firms violating these sanctions could face civil penalties or criminal charges, with sentences of up to seven years in prison.

A recent U.N. Panel of Experts report estimated that around 3,000 North Korean IT workers are operating overseas, generating as much as $600 million annually. The majority of these earnings are seized by the North Korean government to fund its regime, including its weapons programs.

By fLEXI tEAM