March 13, 2019 12:03
The U.S. Treasury Department has issued an alert on financial transactions with North Korea, warning that any financial institutions could be subject to sanctions if they deal with North Korean banks.
In an advisory on March 8, the department informed the Paris-based intergovernmental organization Financial Action Task Force to put North Korea on the "list of countries and other jurisdictions that fall short in combating the financing of terrorists," according to Voice of America on Monday.
The North is the only country that has been on the list for eight straight years, VOA added. That means financial institutions must sever ties with North Korean banks or minimize dealings with them.
The Treasury normally issues the advisory twice a year. The latest came on Oct. 31 last year. The FATF also advised financial institutions to apply "enhanced due diligence" in dealing with Iran.
Any financial transactions with the North run the risk of being used to finance its weapons of mass destruction program and ballistic missile activities, the Treasury warned.
The Treasury added that new joint ventures with the North and dealing with North Korean banks, for example by opening accounts that are not authorized by the UN, are all prohibited.
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