Treasury Department eyes sanctions on North Korea banks

The Treasury Department is proposing new sanctions on North Korea that would block U.S. citizens and institutions from interacting with the Communist nation’s banks, it announced Wednesday. 

Under the proposed rules, U.S. citizens and financial institutions would be banned from opening accounts and processing transactions with North Korean banks.

Adam Szubin, the Treasury’s acting undersecretary for terrorism and financial intelligence, called the North Korean government “notoriously deceitful in its financial transactions in order to continue its illicit weapons programs and other destabilizing activities.” 

“Today’s action is a further step toward severing banking relationships with North Korea and we expect all governments and financial authorities to do likewise pursuant to the new U.N. Security Council resolution,” said Szubin.

The proposed sanctions come as Secretary of State John Kerry and Treasury Secretary Jack Lew meet with South Korean and Chinese officials in Asia.

Lew will meet with in Seoul with South Korean Deputy Prime Minister and Finance Minister Yoo Il-ho to discuss economic relations and North Korea’s destabilizing behavior.

Lew and Kerry will participate in the U.S.-China Strategic and Economic Dialogue in Beijing for three days starting Sunday. The meetings are expected to focus on the financial and strategic relationship between the two countries.