This bill would sanction foreign financial institutions that facilitate a significant transaction for essentially entity that does business with the North Korean government or associated individuals, including businesses and North Korean laborers who work abroad. The sanctions would make it more difficult for the North Korean regime to accrue hard currency through the confiscation of the laborers wages.
The Secretary of the Treasury would be responsible for issuing regulations that would prohibit or strictly limit the use of “correspondent financial accounts” by foreign banks that process transactions involving North Korea. Correspondent accounts allow banks to send money to each other internationally and are essential for accessing foreign financial systems and customer payments. The secretary would provide regular updates on the sanctions to Congress and the public.
Additionally, the bill would direct the U.S. executive directors of international financial institutions (like the International Monetary Fund) to support the denial of financial assistance to foreign governments that don’t comply with this legislation’s requirements. In the case of the IMF, it’d be also be encouraged to support the use of administrative funds to prevent money laundering and the financing of terrorism.