North Korea has managed to conduct costly nuclear and ballistic missile development projects while under some of the strictest, most widely-endorsed sanctions under the sun for decades.Now, Kim Jong-un stands within a few years of completing a credible intercontinental ballistic missile the US would very much struggleto defend against.Despite the UN and key players like China and the US consistently voting in favor of sanctionson North Korea, the regime still finds way to slip around them.Much like their nuclear warheads and missiles,North Korea's sanction evasion techniques are "increasing in scale, scope and sophistication," according to a UN report, which also states thatUN member states' implementation of sanctions remains "insufficient and highly inconsistent."Experts have told Business Insider that while some countries, like China, may have political interests in keeping the Kim regime from collapsing without trade or prosperity, other countries are simply fooled by North Korea's intricate and effective network of front companies and tricks.False flagsOne tactic North Korea has used for shipping missile components and military equipment is sailing under false flags. Though it's illegal to trade military goods with North Korea, aNorth Korean ship, the 'Jie Shun,' was seizedin Egypt carrying tens of thousands of North Korean-made explosives while sailing under a Cambodian flag.Forsmall Asiancountries who cannot afford arms and equipment from China and can't get past US and European arms regulations, North Korea offers cheap, accessible gear.Even if the smaller countries had the means to search every ship and track goods that have both civilian and military applications, for a country like Malaysia, North Korea can be a valuable partner while the false flags keep authorities guessing and off the trail.But earning money illicitly only works if you can move it, and North Korea needs to move a lot of money to fund itsmissile programunder tight banking sanctions.North Korea injects uncertainty into the paper trail of itsbanking system by usingfacilitators"well trained in movingmoney, people and goods, including arms and related materials, across borders,"according toa UN report. The UN noted that North Korea works with non-national facilitators with"varying degrees of complicity" on their part, suggesting some could have been blackmailed.North Korea employsnumerousfront companies for agents and foreign banks tomove money through, that leave little to no paper trail to the regime, and when that won't do they hold large reserves of foreign cash.But even the most well-intentioned states sometimes fall victim to North Korea's trickery. Arecent joint report from Arms Control Wonk and Reutersfoundthe regime uses a system of false addresses and fake names to confuse countries into accidentally doingbusiness with them.Taking advantage of their shared Korean language, North Korean businessmen sometimes take the same name as South Korean businessman. Flubbed addressesthat refer to North Korea asthe"Korean Republic" rather than the DPRK, or "PY city" instead of Pyongyangonly add to the confusion. If a merchant isn't careful, it's entirely possible they could place an order with the wrong Korea and have it filled by the opportunistic Kim regime.Money to burnThe money made off beating sanctions seems to go to North Korea's expensive missile programs, lavish parties, and palaces for Kim and his inner circle, whilethe World Food Program still provides tons of food aid to North Korea and estimates 70% of citizens are food-insecure.In 2012, North Koreaspent$1.3 billionfunding its expansiveballistic missile program. In addition to military funding,North Korea'sleader, Kim Jong-un, hasexpensive tastesandmultiple compounds and private airstripsto maintain. In 2013, Kim was estimated to have spent $644 million in luxury purchases, according toSouth Korean lawmaker Yoon Sang-Hyun.Kim Jung Il, the current leader's father, was said to have spent 20%of the nation's budget on things like Omega watches and Martell Cognac.The Kim regime's ability to beat the sanctions and support one of the world's most hostile regimes shows theimpotency of UN resolutions without real political will behind them. For every time North Korea is caught flouting sanctions, there's no way to know how many times itslips past secretly ' or who is keeping those secrets.SEE ALSO:The US has been fundamentally wrong on North Korea for decades ' and now it may be too lateJoin the conversation about this storyNOW WATCH: How the US could prevent a North Korean nuclear strike ' according to a former Marine and cyberwarfare expert
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