US Intensifies Restrictions To Prevent North Korea From Accessing Global Financial System

The United States has initiated further moves to restrict North Korea from accessing the global payment system referring the country as a primary money laundering concern. A bar has already in place prohibiting US banks and other financial institutions performing direct business with North Korea.

The recent announcement made on June 1 requires US financial enterprises to remain cautious over the transactions in third world countries. These financial institutions may access US financial system on behalf of North Korea.  

On June 1, the US Treasury Department bars US financial institutions from opening or maintaining correspondent accounts with North Korean financial institutions. Accounts which have been maintained to receive deposits from or make payments on behalf of North Korean institution also fall under this bar, reports Reuters.

The announcement appears following a failed missile test effort by the isolated state. North Korea’s fourth nuclear test in January followed launching satellite and several other missiles have escalated tension in the Korean peninsula. All these instigating launching have been conducted in violation of UN resolutions, according to a report published in The Straits Times.

The US and its global partners are concerned on the threats posed by North Korea over the global financial system. Andrew Szubin, a senior treasury official has accused North Korea for deceiving in its financial transactions in an effort to continue its illicit weapons programs and other destabilizing activities, reports Voice of America.

State Department spokesperson, John Kirby alleges on June 1 that North Korea for using state controlled financial institutions and cover companies to guise the transactions. Amount involved in such transactions is believed to be used in developing weapons of mass destruction and ballistic missiles.      

Washington expects similar moves from other governments and financial authorities restricting Pyongyang from abusing global financial institutions. The US intention has been clarified by Adam Szubin, acting under secretary for terrorism and financial intelligence.

Also on June 1, UN Security Council has condemned North Korea for three failed ballistic missile during April and May. The condemnation continues as saying firing ballistic missiles are grave violations of previous resolutions. North Korea’s such derogatory acts escalate global tensions while contributing to its development of missiles capable of carrying nuclear weapons.   

The UN Security Council accuses North Korea for diverting resources to its missile projects leaving behind huge unmet needs of the commoners. The council has imposed restrictions upon UN members to cut off banking relationships with Pyongyang following the serial missile tests through passing a resolution in this regard.