SWIFT bans blacklisted N. Korean banks

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HONG KONG/LONDON, March 9, (RTRS): Brussels based interbank messaging system SWIFT said it had cut off North Korean banks under UN sanctions, after Belgium said it would no longer give authorization for such transactions. The Belgian foreign ministry cited Pyongyang’s “intensifying provocations”, such as missile launches, as motivation for its decision, which will affect three banks.

However, the Belgian move also follows a United Nations report last month which said any company trading with a designated North Korean bank would be in violation of UN sanctions — even if the company had received an authorization from a European government to do so. The Feb 27 report found evidence North Korea was relying on continued access to the international banking system to flout sanctions.

The UN position put the Belgian government at odds with UN sanctions as it had given SWIFT exemptions to work with the sanctioned North Korean banks. The UN report said only the United Nations Security Council Committee could determine whether a company could qualify for an exemption to trade with sanctioned banks — not individual governments.

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