The US Treasury Department issued another advisory against financial dealings with North Korea on Tuesday.

In its latest advisory, the department’s Financial Crimes Enforcement Network reminded financial institutions not to do business with North Korea, which the Paris-based Financial Action Task Force recently targeted in a call for countermeasures because the North lacks adequate systems to combat money laundering and the financing of terrorism.

On Oct. 18 the FATF, an intergovernmental body that sets standards for the prevention of money laundering and the financing of terrorism, reaffirmed its 2011 call on all countries to advise their financial institutions to pay special attention to business relationships and transactions with North Korea, including North Korean companies, financial institutions and those acting on their behalf.

“The FATF urges all jurisdictions to apply effective countermeasures, and targeted financial sanctions to protect their financial sectors from money laundering, financing of terrorism and weapons of mass destruction (WMD) proliferation financing risks emanating from the Democratic People’s Republic of Korea,” the FATF said, referring to North Korea by its official name.

The FATF said in its public statement that it “remains concerned by the DPRK’s failure to address the significant deficiencies in its anti-money laundering and combating the financing of terrorism (AML/CFT) regime and the serious threats they pose to the integrity of the international financial system.”

The FATF said it “urges the DPRK to immediately and meaningfully address its AML/CFT deficiencies.”

FinCEN’s advisory on Tuesday mentioned the financial sanctions against North Korea imposed by the United Nations Security Council and explained that establishing new joint ventures, taking an ownership interest in, or establishing or maintaining correspondence relationships with North Korean banks without advance approval from the UN were prohibited.

The advisory also stressed that the US government maintains a robust sanctions program on North Korea based on six executive orders and a sanctions law.

The FinCEN issues advisories for US financial institutions twice or three times a year, which usually include reminders on North Korea.

By Kim So-hyun (sophie@heraldcorp.com)