China Chiristian Daily

- November 25, 2017 -

Society

Here's Why China Banks Fear US-North Korea Sanctions

By M. Grace
on September 13, 2017 23:09 PM

chinese-money
Chinese money: (credit: Pixabay)

China's banks have been reportedly quietly discouraging themselves off North Korean money.

BBC reported that this is not a move because of annoyance for their troublesome neighbor but it is because of a fear of US consequences.

Chinese bank branches near the border of North Korea have reportedly told the UK newspaper that they have been instructed not to allow opening any new accounts for that country's citizens and even for businesses.

Again, as per BBC's report, this is not reportedly part of any United Nations sanctions regime, "but it is an attempt to head off further US measures targeting banks in China which are accused of doing sanctions-busting business with North Korea."

According to the article, US treasury has its own set of sanctions regime blacklisting people and companies who are reported to have assisted Pyongyang in developing the nuclear weapons. Moreover, when an individual or a person will be listed on the American list of prohibited entities, US companies and even foreign companies can face strict penalties set by the US treasury.

It has been reported that China's financial institutions have been accused of laundering funds used by North Korea to facilitate intercontinental ballistic missile and nuclear warhead development.

Pyongyang is rumored to have used front companies in order to move money around the globe using Chinese banks.

For this specific reason, Washington's officials have been reported to threaten and place major Chinese banks on the black list, for example on Bank of Dandong.

"The Bank of Dandong acts as a conduit for North Korea to access the US and international financial systems, including by facilitating millions of dollars of transactions for companies involved in North Korea's WMD and ballistic missile programs," US Treasury said, announcing that Americans would not be allowed to do business with small Bank of Dandong. 

 

 

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