Foreign Affairs chair: 'Shut down' banks that do business with North Korea

Rep. Ed Royce (R-Calif.) on Sunday said the United States needs to shut down foreign banks that do business in North Korea in response to the country's continued aggression and missile tests.

"What we're urging this president to do at this point is what was done once before with Banco Delta Asia, and that is shut down any foreign banks doing any kind of of business in hard currency with North Korea," the House Foreign Affairs Committee chairman said on CNN's "State of the Union."
 
"When we last did that, we shut off the money for their program and we shut it down tight as a drum, and I think that's the next step that has to be deployed."
 
ADVERTISEMENT
Royce also said during the interview he doesn't think recent military actions by the U.S. in both Syria and Afghanistan were necessarily designed to send a message to North Korea regarding the president's willingness to use military force.
 
"I don't presume that that was the reason for either of those attacks," he said.
 
"What I do presume is that it is the reason for the negotiations with China right now, because there is the realization that if China does cut off all transactions with North Korea, we'll be in a position where once again, the dictator will not be able to pay his generals."
 
Royce said he thinks that's the "negotiation right now."
 
"That's the leverage," he said. "And we need that kind of political leverage, because that's the way to get the attention of the regime in North Korea and have them reconsider on their nuclear program."