The four largest state-owned banks in China have put a halt on all yuan and dollar transfers to North Korea according to Japanese newspaper Tokyo Shimbun.
The measure is reportedly designed to ramp up pressure on Pyongyang following its latest nuclear test and rocket launch which North Korea carried out in breach of international sanctions.
The state-owned banks include Bank of China (BoC), China Construction Bank (CCB), Industrial and Commercial Bank of China (ICBC) and Agricultural Bank of China (ABC).
The latest round of U.N. sanctions, which passed unanimously on Wednesday, also require Chinese maritime authorities to “blacklist” 31 boats operated by a North Korean firm.
Exports of iron, gold, coal, titanium and rare-earth minerals from North Korea are also banned under the latest sanctions unless funds do not go to fund the country’s weapons programs. But analysts have since questioned whether or not it will be possible to determine where cash raised from exports is being allocated.
Authorities this week also restricted how many vehicles could cross into North Korea each day via a bridge to the coastal Chinese city of Dandong, down from between 300-400 to about 100.