KUALA LUMPUR – North Korea may have announced the total severance of its diplomatic relations with Malaysia, but Malaysia’s decision to extradite a citizen of the republic to the United States to face money-laundering charges will only serve the country well, according to an expert.
UKM Institute of Malaysian and International Studies director Prof Sufian Jusoh said this will help disprove claims that Malaysia is a hub for money laundering, and signals its stand against foreign actor-led financial crimes.
“It just goes to show that Malaysia is serious about dealing with cross-border crimes and will not tolerate any such acts, especially in cases of evading international sanctions,” he told The Vibes.
On March 3, the Federal Court denied Mun Chol-myong’s final appeal challenging the US extradition request after he was accused of violating sanctions by supplying prohibited items to North Korea and had laundered funds through front companies.
Chol-myong, who has been living in Malaysia with his family for a decade, was arrested in 2019 and faces four charges of money laundering and two of conspiracy to launder, mainly related to his work in Singapore.
Sufian said the extradition might even help pave the way for other Asean countries to take a harder stance against North Korean criminals taking part in illicit activities abroad.
Many North Koreans are understood to be involved in sophisticated money-laundering schemes by exploiting financial and institutional weaknesses in Southeast Asia, procuring funds for its weapons programme, and exporting sanctioned luxury goods back to their country.
Sufian added that North Korea’s move to sever ties is unlikely to have any ramifications on Malaysia, noting that the two nations share little trade and policy relations that could be of any significant impact.
He noted that this is especially so following the assassination of Kim Jong-nam, the half-brother of Kim Jong-un, in February 2017 at the KL International Airport, which saw the relationship between the states further deteriorate.
“To be frank, the severance of ties means little to Malaysia, especially after the murder. Yes, Pakatan Harapan tried to amend ties when they were in power, but again, we don’t lose anything from this latest development,” he said.
Sufian said that the only significant breakthrough in the relationship between Malaysia and North Korea, since they established diplomatic ties in 1973, was when Malaysia acted as an honest broker in weapons talks and negotiations between the US, North Korea, and South Korea.
When asked if it was bizarre that the US is seeking extradition for only money-laundering charges, or if Chol-myong might have been involved in a more sinister crime, such as spying, Sufian said it was unlikely, but added that the US might use this to show its hard stance against North Korea.
For Malaysia, we are only caught in between, and have become a victim of circumstances between the hostility of the two nations.
The relationship between the US and North Korea has been hostile for years, and while former US president Donald Trump had attempted to pacify the republic while in office, Sufian said Joe Biden is unlikely to “give face”.
“For Malaysia, we are only caught in between, and have become a victim of circumstances between the hostility of the two nations,” he said.
Disproportionate action
In a statement yesterday, Wisma Putra denounced North Korea’s decision to sever ties as unfriendly, unconstructive, and disrespecting the spirit of mutual respect and good neighbourly relations among members of the international community.
It said Malaysia has always considered North Korea as a close partner and was persistent in pursuing concrete efforts to strengthen ties even after the deplorable assassination of Jong-nam.
“In this respect, North Korea’s unilateral decision is clearly unwarranted, disproportionate, and certainly disruptive towards the promotion of peace, stability, and prosperity of our region,” it had said.
Meanwhile, UKM senior lecturer Hoo Chiew Ping said considering the tense relationship between Pyongyang and Washington, it is only expected that the US will pressure other nations into extraditing North Koreans identified to be involved in financial crimes.
“The US will continue to assert pressure on other countries where suspected North Koreans involved in money laundering may meet the same fate,” the academician, whose work focuses on North Korean policies, among others, told The Vibes.
Like Sufian, Hoo said Malaysia will not lose out following North Korea’s severance of ties, claiming trade between the nations has largely ceased since Jong-nam’s murder.
She also acknowledged that Malaysia has been serving as North Korea’s financial hub for years, and that the latest development has only dealt a massive blow to the country’s effort to revive bilateral relations with its Pyongyang counterpart. – The Vibes, March 20, 2021
