TEMPO.CO, Jakarta - Bank of China decided to shut down North Korean Bank account, after suspecting it for funding North Korean Weapons program. The measurement is considered to be a sign that Beijing begins to lose patience for its ally.
Bank of China announced on Tuesday that they stopped all transactions of North Korean Foreign Trade Bank. However, they did not enclose the amount of money in the account or when was the action taken.
The United States Financial Department earlier mentioned North Korean Foreign Trade Bank as the 'cashier' in aiding North Korean regime to develop missiles and nuclear weapons.
For years, North Korea has conducted most of its bank activities through its ally, China. Therefore, the suspension given by the Bank of China could isolate Pyongyang farther.
“Bank of China must oblige international suspension because they have a reputation to maintain," said John Park, an expert in China and North Korea in Harvard University. He added that the Bank of China has started to limit their association with North Korea.
"It will be more substantive if China withdraws the North Korean working papers in China," he said.
REUTERS | TRIP B