US has formally prohibited US financial institutions from opening or maintaining accounts created on behalf of North Korean banks. The US Treasury Department said in a statement that North Korea is using front companies and agents to conduct illicit financial transactions to support the proliferation of weapons of mass destruction and to evade international sanctions.
The move comes after the Treasury in June declared North Korea a primary money laundering concern and proposed the steps to further block its ability to use the US and world financial systems to fund its weapons programs. US is pushing for tougher United Nations sanctions against North Korea after its latest nuclear test on September 9.