President Trump of the United States has signed an executive order that imposes additional sanctions on North Korea. One of its provisions is a 'green light' for the US Treasury to ban correspondent accounts with banks in that jurisdiction.

The EO states: "The provocative, destabilizing, and repressive actions and policies of the Government of North Korea, including its intercontinental ballistic missile launches...and its nuclear test of September 2, each of which violated its obligations; its commission of serious human rights abuses; and its use of funds generated through international trade to support its nuclear and missile programmes and weapons proliferation, constitute a continuing threat to the national security, foreign policy, and economy of the United States."

Section 4 of the order authorises the Secretary of the Treasury, in consultation with the Secretary of State, to:

• prohibit the opening and prohibit or impose strict conditions on the maintenance of correspondent accounts or payable-through accounts in the United States; or
• block all property and interests in property that are in the United States or that come into it in future.