WASHINGTON—A U.S. judge has found three large Chinese banks in contempt for refusing to comply with subpoenas in a probe into North Korean sanctions violations, the Washington Post reported, adding one of them could lose access to the U.S. financial system.
The banks were not identified by the judge, but details in the ruling align with a 2017 civil forfeiture action against Bank of Communications, China Merchants Bank and Shanghai Pudong Development Bank, the Washington Post reported.
The U.S. Justice Department at the time accused the banks of working with a Hong Kong company, which allegedly laundered more than $100 million for North Korea's sanctioned Foreign Trade Bank, the paper said.
Bank Identified
The newspaper said the bank at risk of losing access to U.S. dollars appeared to be Shanghai Pudong Development Bank, whose ownership structure, limited U.S. presence and alleged conduct with other banks matched with the details disclosed in the court rulings.
"The ruling means that Attorney General William P. Barr or Treasury Secretary Steven Mnuchin can terminate the bank's U.S. account and ability to process U.S. dollar transactions," the Post said.