The Obama administration warned U.S. banks Thursday that North Korea might try to avoid financial sanctions by using various “deceptive practices.” The warning from the Treasury Department was the latest U.S. effort to ensure that North Korea does not evade U.N. Security Council sanctions intended to prevent the financing of nuclear and missile activities or their export. The sanctions were approved by the council following Pyongyang's May 25 test of a nuclear device. The Treasury said deceptive practices by Pyongyang and North Korean entities may include suppressing the identity and location of parties originating a banking transaction, arranging funds to be transferred through a third party, and repeated bank transfers that seem to have “no legitimate purpose.” The department urged banks to be watchful for routine use of cash couriers to move large amounts of money when there is no “credible explanation” for the transaction. The Treasury also asked banks to “remain vigilant regarding attempts by North Korean customers to make large cash deposits into new or existing accounts” and to watch for counterfeit dollars. The United States has long accused North Korea of counterfeiting U.S. currency.
