Global

Chinese National Detained In Australia Over $700 Million North Korean Tobacco Scheme

A Chinese national, Jin Guanghua, is currently detained in Australia amid allegations of orchestrating a tobacco smuggling operation that reportedly generated $700 million for North Korea.

Guanghua is awaiting extradition to the United States, where he is set to face charges related to sanctions violations, bank fraud, money laundering, and conspiracy offenses.

The accused is believed to have supplied tobacco to Pyongyang for approximately ten years, contributing to a scheme operated through North Korean state-owned companies and financed by its banks. US court documents reveal that Chinese front companies facilitated transactions through the US financial system, allowing millions of dollars to flow into Pyongyang, thereby bypassing sanctions.

Jin Guanghua has further been accused of establishing entities in the United Kingdom, New Zealand, the United Arab Emirates, and China to facilitate tobacco purchases.

The US said that revenue generated from this illicit scheme is alleged to have supported North Korea’s ballistic and nuclear proliferation programs.

Counterfeit cigarettes, a major source of income for North Korea since the 1990s, are produced in Pyongyang and distributed with the false packaging of well-known tobacco brands. These counterfeit cigarettes have been discovered in various countries, including the Philippines, Vietnam, and Belize.

If convicted, Jin faces substantial fines and a lengthy prison sentence.

Court documents also named his alleged co-conspirators, Chinese nationals Qin Guoming and Han Linlin, who are currently wanted by the FBI with a bounty of $498,000 offered for information leading to their arrest and conviction.

The illicit trade in counterfeit cigarettes has long been a significant source of hard currency for North Korea according to US authorities. The US has imposed strict sanctions on North Korea over its nuclear and ballistic missile activities. In 2023, British American Tobacco faced a $635 million fine after one of its subsidiaries admitted to selling cigarettes to Pyongyang, described by authorities as an “elaborate scheme to circumvent US sanctions.”

Ozioma Samuel-Ugwuezi

Follow us on:

AriseNews

Recent Posts

IPOB Denounces Simon Ekpa As A ‘Destructive Agent’, Clarifies He Was Never A Member Of The Group

IPOB distanced itself from Simon Ekpa, calling him a “destructive agent” who infiltrated and destabilised…

47 mins ago

Biden Calls ICC’s Arrest Warrants For Netanyahu, Gallant ‘Outrageous’

Biden has condemned ICC's arrest warrants for Netanyahu and Gallant, calling them "outrageous" amid global…

55 mins ago

Chukwuma Ezeala: Simon Ekpa’s Arrest Won’t Guarantee Peace In Southeast, Government Must Identify His Disciples

Chukwuma Ezeala has said that despite Simon Ekpa’s arrest, identifying his disciples in Southeast Nigeria…

57 mins ago

Federal Government Reinstates Ikechebelu as Acting Vice-Chancellor of UNIZIK

The federal government has reinstated Professor Joseph Ikechebelu as acting Vice-Chancellor of UNIZIK, nullifying Professor…

3 hours ago

Court Of Appeal Nullifies Judgment Blocking Voter Register Release For Rivers LG Polls

Court of Appeal has overturned the Federal High Court ruling barring INEC from releasing voter…

3 hours ago

Kenya Cancels Adani Contracts as US Prosecutors Charge Tycoon with Fraud

Kenya has cancelled airport and energy deals with Adani following US bribery and fraud charges…

3 hours ago