China to freeze N Korean Bank Accounts

China has taken unprecedented action against it's long time ally, not because of missile activities, but because of counterfeiting and money laundering alleged by the US. This is amazing news. I can't help but wonder if China's patience with it's ally has been exhausted.
FT.com

The Bank of China has frozen North Korean bank accounts containing millions of dollars, following in the footsteps of a US-led crackdown on the rogue state’s alleged counterfeiting and money-laundering.


The decision is remarkable because Beijing, long concerned about the potential for catastrophe on its north-eastern border, has hitherto avoided taking any action that might cause instability in Kim Jong-il’s regime.


A US government official said on Tuesday the Bush administration had been alerted that the Bank of China had frozen North Korea-related assets in its Macao branch. Earlier this year, China had warned financial institutions about counterfeiting by North Korea.


The Bank of China froze the accounts before this month’s provocative rocket tests by North Korea, which have led to international sanctions intended to curb North Korea’s missile programme, said Park Jin, a prominent lawmaker in South Korea’s main opposition Grand National Party who recently met former and current US administration officials in Washington.


Pyongyang has responded angrily to US action against the Banco Delta Asia (BDA) in Macao, where $24m of North Korean money has been frozen since September. Similar action by China’s second-largest bank is likely to have a profound effect. North Korea has insisted it will not resume six-party talks unless the US calls off its financial campaign.


“I understand the Bank of China stopped dealing with North Korea as the US expanded its probe,” said Mr Park. “This is a virtual ban against dealing with North Korea by China, leaving North Korea all the more devastated,” Mr Park said, quoting a former Bush administration official. Washington believes Pyongyang has been counterfeiting Chinese renminbi as well as US dollars, he added.


[...]North Korean and foreign businessmen dealing with Pyongyang say sanctions have shut down the regime’s ability to earn foreign currency.