Treasury Severs Ties with Chinese Bank, Citing Link to Illicit North Korean Activity

The Financial Crimes Enforcement Network today issued a final rule severing ties between the U.S. financial system and the Chinese Bank of Dandong, which it said has served as a conduit for moving illicit funds out of North Korea, including those used for the development of weapons of mass destruction. With this action, U.S. financial institutions are prohibited from operating or maintaining correspondent accounts for, or on behalf of, Bank of Dandong.

Treasury also issued an advisory highlighting red flags of illicit North Korean schemes, intended to assist banks in detecting and reporting suspected illegal activity.

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Monica C. Meinert

Monica C. Meinert is deputy editor of the ABA Banking Journal and editorial director at the American Bankers Association, where she oversees ABA Daily Newsbytes.