G7 urges tighter controls on 'illicit' North Korea financial activities

Group of Seven finance ministers today urged governments and banks to tighten controls on North Korea's "illicit" financing activities, saying the nation had skirted international sanctions.

In the wake of surprising news that Washington has held high-level talks with Pyongyang in preparation for a possible leaders' summit, the finance officials expressed concern about the network of fronts and shell companies used to secure funds.

"We are concerned by North Korea's evasion of international sanctions and its continued ability to access the international financial system," the G7 said in a joint statement.

"Financial institutions in G7 countries also play an important role in the fight against North Korea's illicit global financial activity," the statement said, pointing to North Korea's "deceptive financial practices." The finance ministers of Britain, Canada, France, Germany, Italy, Japan and the United States, as well as the European Union, urged other countries to "be on alert and take steps" to ensure they are not processing transactions for North Korean entities.

The country's development of weapons of mass destruction and ballistic missiles "poses a grave threat to international peace and security," and has made it subject to UN Security Council action, the statement said, adding, "we will continue to take action to impose maximum economic pressure on North Korea."