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Chinese Businesswoman Gets Indicted by U.S. for Helping North Korea Evade Sanctions

By September 29, 2016 at 11:36 am

A major member of the Chinese Communist party, business woman Ma Xiaohong, has received an indictment from the United States of America Department of Justice for using her trading company to assist North Korean companies to get around U.S. sanctions and get raw materials to make nuclear-weapons. 

According to the indictment, through her company Dandong Hongxiang Industrial Development Co., Ma Xiaohong has acted on behalf of North Korean companies that have been sanctioned by the United States for their roles in Pyongyang’s nuclear weapons program.

North Korean firms passed several hundreds of millions of dollars through Ma Xiaohong and her company in transactions through the U.S. banking system. In the indictment, it is written in fine print that Ms. Ma and her company, Dandong Hongxiang Industrial, did a lot of U.S. Dollar transactions for North Korea’s Kwangson Banking Corp which was sanctioned in 2009 for the role it allegedly played in sponsoring Pyongyang’s nuclear weapons program. The indictment not only affected Ma Xiaohong but her trading company and three of her business associated were also named in the indictment.

In a statement by Assistant Attorney General Leslie Caldwell, he said the indictment came down on the businesswoman after it was established that she found a way around the sanctions North Korea is under and used shell companies to channel money through the United States to finance a nuclear weapons program.

Ms. Ma has refused to make any comments on the issue. However, earlier this month, Ms. Ma and her company were reportedly under watch by the United States according to a report by the Wall Street Journal. The United States’ justice department is looking to freeze the money in 25 bank accounts operated by Ms. Ma. Officials from the United States claimed the funds were illegally moved.

However, in light of all these events, the United States still feels China is not doing enough about the case. United States officials say they are waiting to receive documents from China in order to know what Ms. Ma and her company are exactly being charged for.

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