Japan's ruling party plans will propose a law to ban Japanese financial institutions from dealing with banks suspected of involvement in alleged North Korean money laundering activities, a news report said yesterday.
A ruling Liberal Democratic Party task force will submit the bill to Parliament later this year, the Mainichi Shimbun daily reported, citing unidentified party officials.
The LDP did not immediately return calls seeking comment.
The action would be similar to US restrictions on Macau-based Banco Delta Asia and several North Korean companies that Washington claims are involved in counterfeiting, money laundering and funding weapons proliferation, according to the report.
Washington's measures have been a key sticking point in resuming international talks aimed at curbing Pyongyang's nuclear weapons program.
North Korea has denied the money-laundering allegations, and since November has vowed not to return to six-nation nuclear talks until Washington lifts a freeze on disputed North Korean assets.
Tokyo has banned a North Korean trade ferry from entering Japanese ports. Japanese news reports have also said Tokyo is considering revising trade laws to require Japan-based companies who trade with the North to disclose the destinations of their exports.
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