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US Treasury prohibits transactions involving DPRK financial institutions

On 1 June 2016, the US Department of the Treasury designated North Korea as a jurisdiction of “primary money laundering concern” under Section 311 of the US Patriot Act. As a consequence the Financial Crimes Enforcement Network of the US Department of the Treasury published a proposal, the enactment of which will prevent any processing through the US financial system of transactions involving DPRK financial institutions; although in practice this may have little additional impact as US financial institutions are already prohibited from processing any payments, including through correspondent accounts of foreign financial institutions, involving persons located in DPRK and its government, unless authorised by OFAC.