U.S. N. Korea Foreign Bank Use

On 21 September, Treasury issued executive order to cut funding to N Korea.

  • Followed 11 September 2017, UN Security Council sanctions on N. Korea.

Treasury Statement

  • Said despite UN resolution, North Korean had continued to threaten the world.
  • US Authorities target enablers of regime's economic activity, wherever located.
  • Stated no bank in any country should be used to assist NK destructive behavior.

Bank Restrictions

  • Prohibits export of goods, services including financial services and technology.
  • Banks face sanction, including suspension of US correspondent account access.
  • To foreign banks that knowingly conducts or facilitates significant transactions
    which are tied to trade for North Korea, or relate to certain designated person.
  • Authority to block funds transiting accounts linked to Korea that come into US.


  • Stated foreign banks can choose to do business for US or N Korea, but not both.
  • Sanctions will be forward-looking, and applied to conduct following date of EO.
  • Anyone trading goods, service or technology, could be banned from US system.
  • Block and freeze assets of actors supporting textile, fishing, IT, manufacturing.
  • US person can not do business with entities in N. Korea, unless under a license.

OFAC Guidance

  • OFAC issued FAQs, a new general license 10, and update of general license 3-A.
  • License 10 on calling of certain vessels, and landing certain authorized aircraft.