May 16, 2022
GUIDANCE ON THE DEMOCRATIC PEOPLE’S REPUBLIC OF KOREA INFORMATION TECHNOLOGY WORKERS
The U.S. Department of State, the U.S. Department of the Treasury, and the Federal Bureau of Investigation (FBI) are issuing this advisory for the international community, the private sector, and the public to warn of attempts by Democratic People’s Republic of Korea (DPRK, a.k.a. North Korea) information technology (IT) workers to obtain employment while posing as non-North Korean nationals. There are reputational risks and the potential for legal consequences, including sanctions designation under U.S. and United Nations (UN) authorities, for individuals and entities engaged in or supporting DPRK IT worker-related activity and processing related financial transactions.
The DPRK dispatches thousands of highly skilled IT workers around the world to generate revenue that contributes to its weapons of mass destruction (WMD) and ballistic missile programs, in violation of U.S. and UN sanctions....
1) As is common with most "advisories," this advisory on North Korea Ballistic Missile Procurement does not clarify the scope and operation of any OFAC-administered sanctions provisions. Instead, it serves to alert the regulated community to tactics used by sanctioned persons to evade sanctions. For practical purposes, the import of this document would be that, in the event that a person were investigated for engaging in prohibited or sanctionable conduct, OFAC would consider any such person to have been given notice as to the contents of this document, with the expectation that the contents were taken account of in the formation of a risk-based compliance program.
In that regard, the guidance is particularly notable for U.S. persons that hire IT workers, especially remotely. The specific verification-based diligence measures suggested appear aimed specifically at freelance work and payment platform companies that serve as...