'US to Penalize Banks Not Complying with NK Sanctions'

The United States is reportedly planning to back its new financial sanctions on North Korea with potential penalties for financial institutions in other countries that don’t comply with the sanctions. Speaking to reporters Tuesday, a ranking diplomatic source in Washington who asked to remain anonymous said the U.S. will first name the sanction targets and will then advise third-nation financial institutions to halt transactions with the named entities. The source said that if the institutions refuse to cooperate, all transactions with U.S. banks will be cut off. The source noted that the majority of North Korea-related accounts are in China and Southeast Asia. The U.S. government is believed to have drafted a new administrative order sanctioning North Korean organizations and individuals whose illegal activities have been verified.