Asia & the Pacific

Despite one of the most extensive sanctions regimes in history, including an embargo on missile technologies, North Korea has taken huge steps forward in its ballistic missile programme. Daniel Salisbury explores the limitations of, and challenges of implementing, supply-side approaches to missile nonproliferation. Considering North Korea’s recent progress and efforts to evade sanctions, the article highlights the continuing need to strengthen efforts to counter illicit trade in missile-related technologies.

Over the past two decades, the United States has increasingly turned to targeted sanctions and export restrictions, such as those imposed against Iran and North Korea, in order to curb the spread of weapons of mass destruction. One vexing problem, however, is how to contend with jurisdictional hurdles when the violations occur overseas, in countries that are unable or unwilling to assist US enforcement efforts. To solve this problem, US prosecutors are turning to strategies with significant extraterritorial implications—that is, exercising legal authority beyond national borders. One such tool is to use civil legal procedures to seize assets linked to sanctions or export-control violations in jurisdictions that lack cooperative arrangements with US enforcement agencies. While this may be an attractive strategy to bolster enforcement efforts against overseas illicit procurement, using such tools is not without consequence. This article explores the political, legal, and technical implications of enforcing extraterritorial controls against overseas non-state actors by exploring the recent uses of civil-asset forfeiture against Iranian and North Korean procurement networks.

‘Third countries’ are frequently exploited by those involved in networks to transfer proliferation-sensitive technologies, allowing procurement agents to obscure the end user or vendor located in the proliferating state, and to deceive industry, export licensing officials, and intelligence services. While ‘third countries’ frequently feature in illicit transactions, the academic literature exploring the roles played by entities in these jurisdictions is limited. Building on the sanctions busting literature, this article proposes a loose typology considering the ways in which third countries can be exploited by proliferation networks. The typology is illustrated using three cases involving entities based in Malaysia – A. Q. Khan’s nuclear black market network, and Iran and North Korea’s efforts to procure and market WMD-related and military goods. These cases are used to generate insights into proliferators’ selection of ‘third country’ hubs. The article argues that while exploitation of third countries by proliferation networks is a similar, but distinct phenomenon to trade-based sanctions busting, hubs of both activities share characteristics. Furthermore, the article argues that other factors beyond the lax regulatory environment, such as level of development, and personal connections, are often as important in driving the decisions of proliferation networks. The article concludes with implications for nonproliferation policy.

"...[I]t's unclear who — if anyone — would buy North Korean nuclear technology. However, the nightmare scenario of North Korea selling it to the highest bidder merits consideration."

The Right Honourable Douglas Alexander offered his views on European security in a discussion moderated by FDP Executive Director Cathryn Cluver.

Matthew Bunn, Professor of Practice at Harvard Kennedy School and Co-Principal Investigator at the Belfer Center’s Project on Managing the Atom, sits down with Aroop Mukharji (@aroopmukharji) to talk about everything nuclear—from the nuclear football to the best way to prevent nuclear smuggling.

In a new report from the Project on Managing the Atom, Senior Research Associate Hui Zhang finds that China has made important nuclear security improvements in areas ranging from its legal framework, to its approaches to physical protection and material accounting, to bolstering nuclear security culture. But China also faces ongoing threats. The possibility of insider theft of nuclear materials in China cannot be ruled out, espe­cially as China increasingly grows into a market-oriented society contending with corruption. Zhang also notes that Beijing faces a growing terrorism threat from separatists in China’s autonomous Xinjiang region.

"China's size and relatively rapid economic growth will bring it closer to the US in terms of its power resources in the next few decades. But this does not necessarily mean it will surpass the US in military, economic and soft power."