Bangladesh Import Payment Statistics for North Korea 2021–2022: In-Depth Analysis
This article analyzes Bangladesh's import payment statistics related to North Korea for 2021–2022, based on Bangladesh Bank payment data. It systematically organizes payment methods, value trends, settlement banking channels, and the status of UN sanctions compliance. This material is used as a baseline for KOTRA's North Korea information gathering and UN sanctions monitoring work, and also serves as a sanctions compliance reference for Korean companies operating in Bangladesh.
Bangladesh's import payments to North Korea are negligible at around $1M per year, but they are important as an indicator for understanding the status of UN Security Council sanctions resolution compliance. In particular, the possibility of third-country transit transactions through Bangladesh and ensuring transparency of financial channels remain ongoing concerns.
In-Depth Analysis by Payment Method
Bangladesh's import payments to North Korea are overwhelmingly dominated by TT (telegraphic transfer), with LC (letter of credit) payments almost absent. This reflects the combined effect of international commercial banks' voluntary de-risking policies refusing to issue North Korea-related LCs, and North Korea's restricted access to the international financial system. Even TT remittance channels frequently route through Chinese banks or non-SWIFT channels, limiting traceability.
| Payment Method | 2021 | 2022 | 2-Year Total | Share | Main Products |
|---|---|---|---|---|---|
| TT Remittance | $928K | $818K | $1,746K | 86% | Textiles/apparel |
| DA/DP | $108K | $95K | $203K | 10% | Some textiles |
| LC (Letter of Credit) | $44K | $37K | $81K | 4% | Minimal consumer goods |
| Total | $1,080K | $950K | $2,030K | 100% |
Product-Level Payment Breakdown and Sanctions Status
Import payment products are predominantly garments and textiles, and UN-sanctioned items (coal, steel, seafood, lead, machinery, financial and IT services, etc.) are confirmed as not included in official payment records. However, continued monitoring for the possibility of disguised transactions involving sanctions-adjacent dual-use products is necessary.
Settlement Banking Channel Analysis
Only a limited number of commercial banks participate in Bangladesh's North Korea-related payments. Major international banks (Citibank, HSBC, Standard Chartered, etc.) avoid participation due to de-risking policies. The typical approach involves local Bangladeshi banks routing through Chinese correspondent banks.
| Bank Type | Transactions | Amount | Main Payment Route | Risk Level |
|---|---|---|---|---|
| Bangladesh State-Owned Banks | 12 cases | $1.1M | Via Chinese correspondent | Medium (monitoring possible) |
| Bangladesh Private Banks | 8 cases | $0.7M | Some non-SWIFT | High (limited traceability) |
| Foreign Bank Branches | 3 cases | $0.23M | Via Singapore | Low (rule-compliant) |
| Total | 23 cases | $2.03M |
UN Sanctions Compliance Status and Risk Assessment
KOTRA Monitoring Framework
KOTRA's Dhaka Trade Office collects and analyzes Bangladesh's North Korea-related payment trends on a quarterly basis and reports to headquarters. A system is in place to share information with related authorities such as the Ministry of Foreign Affairs and Ministry of Industry when anomalies are detected. Korean companies should establish KYC (Know Your Customer) procedures to verify Bangladeshi partners' North Korea-related transaction history before engaging with them.