Plan B Watch: Treasury Requires “Enhanced Due Diligence” for N. Korean Banks
The Treasury Department has announced that the governments of Sao Tome and North Korea will henceforth be subject to the “enhanced due diligence” requirements of Section 312 of the USA PATRIOT Act. The measures apply to U.S. financial institutions maintaining correspondent accounts for “foreign banks operating under a banking license issued by” North Korea. By itself, this action is likely to have little effect, because it’s doubtful that any North Korean-licensed banks have U.S. correspondent accounts. The better question, however,...