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U.S. Puts Banks on Notice With ‘Recipe Book’ on North Korea

6th November 2017 - Quoted by Samuel Rubenfeld - The Wall Street Journal

The U.S. Treasury Department wants banks to help it prevent North Korea from evading sanctions, providing a guide to how Pyongyang uses front companies, money laundering and other financial crime to make money.

Taken together with the action against a Chinese bank last week, the U.S. put financial institutions on notice. Though there is little new in the advisory issued by Treasury’s Financial Crime Enforcement Network, experts said, compiling prior conduct in one place will make it easier for bank compliance officials to remain vigilant.


Chinese banks were put on notice by the advisory, according to Anthony Ruggiero, a senior fellow at the Foundation for the Defense of Democracies, who wrote a policy brief on Monday about the document. Treasury told them they’re exposed to North Korean sanctions, which could result in sizeable penalties, he wrote.

“Compliance officers in major Chinese banks should be paying attention. If the banks’ illegal activity continues, Treasury may decide to block a medium-to-large Chinese bank from the U.S. financial system or freeze its assets,” wrote Mr. Ruggiero.


Read more here.



china, csif, north-korea, sanctions