Question 1

What is Tanchon Commercial Bank?

Accepted Answer

Tanchon Commercial Bank is a state-owned financial institution in the Democratic People's Republic of Korea (North Korea). The bank operates under the jurisdiction of North Korea's Ministry of Industry and the Second Economic Committee. It is recognized internationally as the main financial entity involved in facilitating sales of conventional arms, ballistic missiles, and goods related to weapons manufacturing.

Tanchon Commercial Bank has approximately thirty employees and maintains regional offices specializing in weapons sales in the Middle East, Myanmar, and Africa. The bank serves as a financial arm for North Korea's defense industry and handles foreign currency accounts for the government.

Question 2

When was Tanchon Commercial Bank founded?

Accepted Answer

Tanchon Commercial Bank was originally founded in August 1986 under the name Changgwang Credit Bank (also known as Korea Changgwang Credit Bank). The bank was established with the specific purpose of handling financial transactions for Yongaksan Trading Company and serving as a fund manager for the Second Economic Committee.

The institution later changed its name to Tanchon Commercial Bank, though the exact date of the name change is not publicly documented. At one time, the bank's leader was Maeng Bong-shik (also spelled Maeng Pok-sik).

Question 3

Where is Tanchon Commercial Bank headquartered?

Accepted Answer

Tanchon Commercial Bank is headquartered at Saemul 1-Dong (also spelled Saemaeul-1 Dong), Pyongchon District, Pyongyang, North Korea. This location in the capital city serves as the bank's primary operational center.

The bank's SWIFT/BIC code was historically CCBHKPPY, though the institution withdrew from the SWIFT system due to international sanctions.

Question 4

Where does Tanchon Commercial Bank operate?

Accepted Answer

While headquartered in Pyongyang, Tanchon Commercial Bank operates throughout North Korea with a focus on facilitating international transactions related to the country's defense industry. The bank maintains regional offices and representatives that specialize in conducting business in various international markets.

The bank has historically had representatives operating in regions including the Middle East, Myanmar, and Africa, focusing on weapons sales and related financial transactions. The institution also conducts foreign exchange transactions globally.

Question 5

What services does Tanchon Commercial Bank offer?

Accepted Answer

Tanchon Commercial Bank provides specialized banking services primarily focused on:

Foreign Currency Management: The bank is used to repatriate and hold foreign currency accounts for North Korean government entities and state-owned enterprises.

International Fund Transfers: Facilitating cross-border payments and wire transfers for government-related transactions, particularly those involving defense-related industries.

Transaction Processing: Handling financial transactions for entities such as Yongaksan Trading Company and other organizations under the Second Economic Committee's jurisdiction.

The bank does not offer traditional retail banking services to the general public and does not maintain a public-facing website.

Question 6

What makes Tanchon Commercial Bank unique?

Accepted Answer

Tanchon Commercial Bank is distinguished as the primary financial institution designated by the United Nations Security Council for its role in North Korea's weapons proliferation activities. The bank serves as the financial arm of Korea Mining Development Trading Corporation (KOMID), North Korea's premier arms dealer.

The institution has been subject to extensive international sanctions since 2009, when it was designated by the UN Security Council pursuant to Resolution 1718. It has also been sanctioned by numerous countries including the United States, United Kingdom, European Union member states, Japan, Australia, and Switzerland.

Despite these sanctions, the bank continues to operate within North Korea's financial system, demonstrating the regime's commitment to maintaining financial infrastructure for its strategic industries.

Question 7

What type of financial institution is Tanchon Commercial Bank?

Accepted Answer

Tanchon Commercial Bank is a specialized state-owned commercial bank operating within North Korea's centrally planned banking system. Unlike typical commercial banks, it functions as a specialized financial institution dedicated to supporting government strategic initiatives, particularly in the defense and weapons manufacturing sectors.

The bank operates under the control of the Ministry of Industry and the Second Economic Committee, making it a government-controlled entity rather than an independent commercial institution. This classification places it within the category of state-owned specialized banks that serve specific government functions rather than providing general banking services to the public.

Question 8

What international sanctions affect Tanchon Commercial Bank?

Accepted Answer

Tanchon Commercial Bank has been subject to comprehensive international sanctions since 2009. The United Nations Security Council designated the bank in April 2009 pursuant to Resolution 1718, identifying it as the main North Korean financial entity for sales of conventional arms, ballistic missiles, and goods related to the assembly and manufacture of such weapons.

The United States Department of the Treasury has maintained sanctions against the bank under various Executive Orders, including E.O. 13382 targeting weapons of mass destruction proliferators. These sanctions freeze any assets within U.S. jurisdiction and prohibit U.S. persons from conducting financial or commercial transactions with the institution.

Additional sanctions have been imposed by the European Union, United Kingdom, Japan, Australia, Switzerland, Canada, and other countries. The bank was also forced to withdraw from the SWIFT international banking system, severely limiting its ability to conduct international wire transfers through conventional banking channels.

Question 9

What entities are associated with Tanchon Commercial Bank?

Accepted Answer

Tanchon Commercial Bank has been linked to several entities within North Korea's weapons proliferation network. The bank serves as the financial arm of Korea Mining Development Trading Corporation (KOMID), designated by the UN as North Korea's primary arms dealer and main exporter of goods and equipment related to ballistic missiles and conventional weapons.

The bank has also been connected to Amroggang Development Bank (also known as Amnokkang Development Bank), which was established in 2006 and is managed by Tanchon officials. Additionally, Korea Kwangson Banking Corporation (KKBC) has provided support services to Tanchon Commercial Bank.

Various individuals have been sanctioned for their roles as Tanchon Commercial Bank representatives, including Mun Chong-chol, Ra Kyong-su, and Kim Kwang-il, who have facilitated transactions for the bank in their official capacities.

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About Tanchon Commercial Bank in North Korea