May 7, 9:47 AM EDT

Bank of China cuts off North Korea trade bank

AP Photo
AP Photo/Ng Han Guan
Business Video
Interactive
Made in China: Too Many Imports Too Soon?
Latest News
Slower Chinese growth adds to pressure on leaders

EU: China may be dumping mobile network equipment

'Django Unchained' back in Chinese movie theaters

China's April auto sales rise 13 percent

China's April inflation rises to 2.4 percent

Multimedia
Video photo gallery on trash in China
China celebrates 60th year
Panorama of Tiananmen Square
Remembering Tiananmen
A year after China quake
Migrant laborers struggle to find work
Checking Beijing's Air
China's morning exercises in parks
Exploring Chinese Cuisine
Beijing Architecture Changes For Games
Woman Rescues Homeless Quake Dogs
China Holds Funeral for Panda
China's 1-child Policy Causes Extra Pain
Map of Earthquake Zone in Central China
Entrepreneurs Move Into, Out of China
Olypmics in Beijing Highlight China's Water Woes
Foreign Buyers Head to China Despite Problems
Coal Use Produces Pollution, Illness
Coal Means Profit, Woes for China
China Extending Its Reach Around the World
In China, the Desert Closes In
Latest News
China arrests man over fake plane bomb threats

Southern China rains kill 55, leave 14 missing

Cultural attitudes impede organ donations in China

Residents shout 'Protest!' over refinery in China

Slower Chinese growth adds to pressure on leaders

Buy AP Photo Reprints
Audio Slideshow
Panorama of Tiananmen Square
Remembering Tiananmen

BEIJING (AP) -- One of China's biggest banks said Tuesday it has halted business with a North Korean bank accused by the U.S. of financing Pyongyang's missile and nuclear programs in the latest sign of Beijing's displeasure with its estranged ally.

The state-run Bank of China Ltd. has notified the Foreign Trade Bank of North Korea that its account or accounts were being closed and all financial transactions suspended, said a bank spokeswoman, reading a brief statement. The spokeswoman for the Beijing-based bank did not identify the number of accounts closed or provide further details.

The move comes after the Chinese leadership, installed last year, has shown growing frustration with North Korea's young leader, Kim Jong Un, and the nuclear and missile tests his government has conducted, aggravating regional tensions. In recent months, Beijing has displayed willingness to work with Washington to apply pressure, from signing on to U.N. sanctions to issuing a statement with U.S. Secretary of State John Kerry last month urging North Korea to abandon its nuclear programs.

China is North Korea's economic lifeline, providing nearly all of its fuel and most of its trade. North Korea's economic dependence on China is rising, following a standoff with South Korea that effectively shut an industrial park that was an important source of hard currency.

The Bank of China's suspension of business further complicates the ability of the Foreign Trade Bank, North Korea's main foreign exchange bank, to access a key financial market.

In March, the U.S. Treasury Department imposed sanctions against the Foreign Trade Bank, effectively cutting it off from the U.S. financial system and urged Beijing to do the same.

The department called the bank a "key financial node" in North Korea's programs to develop weapons of mass destruction. It said the Foreign Trade Bank had financed other banks and companies already targeted by sanctions, including assisting in millions of dollars in transactions for the Korean Mining Development Corp., a major arms dealer.

© 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use.