U.S. lawmakers are considering drafting new legislation that would mandate a ban on Chinese financial institutions with ties to blacklisted entities in North Korea ahead of the country's expected test of an intercontinental ballistic missile.
The U.S. House of Representatives on Tuesday forwarded legislation to the Senate targeting North Korea's access to currency and foreign exchange services in response to the country's latest test of a nuclear weapon.
The House Committee on Foreign Affairs Friday advanced a measure that would bar foreign banks linked to North Korean weapons proliferation and financial crime from holding U.S. correspondent accounts.
The Obama administration is working to cut off North Korea's remaining access points to the global financial system, including through China, a U.S. Treasury Department official told lawmakers Tuesday.
Banks in China, Southeast Asia and Europe will soon see their compliance duties get tougher under new U.N. sanctions measures aimed at stifling North Korea's nuclear arms program, say analysts.
The United Nations Security Council Friday unanimously approved strengthening trade and economic sanctions against North Korea, including the reinstitution of financial freezes passed but not acted on in 2006.
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