UN’s Toughened Stance on North Korea Likely to Spur Sanctions Busting

By Colby Adams

U.N. Security Council sanctions imposed on North Korea last week could require U.S. financial institutions to more effectively scrutinize correspondent transactions and trade financing linked to corporate accounts in Asia, according to compliance sources. The sanctions package calls on member-states to order financial institutions to shut down correspondent accounts maintained for North Korean banks by May, unless otherwise authorized by the Security Council. Nations must also close all North Korean bank branches, subsidiaries and representative offices within their borders and bar the opening of new financial operations and accounts in the communist country. The resolution also bans North Korea's use...