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China's big four cease business with North Korean bank

China’s big four cease business with North Korean bank

(14 May 2013 – China) In an effort to increase pressure on North Korea to abandon its nuclear power program, China’s big four state-owned banks cut off financial dealings with North Korea’s state-run Foreign Trade Bank.

Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (ABC) and China Construction Bank (CCB) followed the lead of Bank of China (BoC), the nation's biggest foreign exchange bank, in severing business with the North Korean bank.

North Korea’s recent ballistic missile launch and third nuclear test prompted the Chinese government to impose these financial sanctions even though China is traditionally the country’s closest ally and a major economic benefactor.

CCB also halted remittances and other transactions with North Korea and said it has consistently carried out operations in strict compliance with instructions from the Chinese government and UN Security Council resolutions.

ICBC and ABC also said they no longer handle remittances to North Korean banks.

Analysts said the suspensions are also aimed at intercepting funds North Korea needs to invite nuclear engineers or purchase nuclear-related parts from abroad.

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