British banker set up firm used by North Korea to sell weapons | News | The Guardian
A British banker who spent two decades living in communist North Korea set up a secret offshore finance company allegedly used by the Pyongyang regime to help sell arms and expand its nuclear weapons programme.
Nigel Cowie a fluent Korean and Chinese speaker, who studied at Edinburgh University was behind a Pyongyang front company, DCB Finance Limited, registered in the British Virgin Islands, papers show.
He says DCB Finance was used for legitimate business and that he was unaware of any unlawful transactions.
Cowie moved to North Korea in 1995 when Kim Jong-il was in power, and went on to become head of its first foreign bank, Daedong Credit Bank. Initially operating out of a ramshackle Pyongyang hotel with a staff of three, Cowie led a consortium that in 2006 bought a 70% stake in the bank.
Giving his address as Pyongyangs International House of Culture, he registered DCB Finance Limited, an offshoot of the bank, in the BVI in summer 2006, with a senior North Korean official, Kim Chol-sam. The Panamanian law firm Mossack Fonseca incorporated the company, despite North Korea being an obvious high-risk destination.
That July Kim Jong-il signalled his defiance of US sanctions by firing seven ballistic missiles. In October, North Korea carried out its first nuclear weapons test with a controlled underground explosion. The ensuing diplomatic crisis saw the UN impose asset freezes and and travel and trade bans.
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