China freezes Pyongyang accounts
27 July 2006
Bank of China has frozen North Korean bank accounts containing millions of dollars, a prominent member of South Korea's main opposition Grand National Party told the Financial Times following meetings with US officials in Washington. China warned financial institutions about counterfeiting by North Korea earlier this year. Bank of China declined to comment on the alleged freeze, but if true it represents a remarkable about-turn from Beijing, which has until now carefully avoided taking any action that might cause instability in Kim Jong-il's regime.