United States said on Monday that it has imposed sanction on a Chinese firm for its alleged involvement in money laundering to facilitate North Korea's controversial nuclear program.

The company, which is engaged in wholesale business of industrial machinery and equipment, is run by Chinese businessman Ma Xiaohong.

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The move is expected to pile additional pressure on North Korea, which defiantly carried out its latest and most powerful nuclear test till date on Sept. 9.

It was revealed that Dandong Hongxiang Industrial Development Co (DHID) and four of its executives, including the company's founder have been sanctioned under US regulations that targets proliferators of weapons of mass destruction (WMD).

"Today's action exposes a key illicit network supporting North Korea's weapons proliferation," Adam Szubin, the Treasury Department's acting undersecretary for terrorism and financial intelligence, said in a statement. "DHID and its employees sought to evade US and UN sanctions, facilitating access to the US financial system by a designated entity."

The Chinese firm used several front companies for money laundering and its bank accounts and front companies allegedly received millions of dollars that transited through the United States, the treasury department added.

The US alleged that the company acted on behalf of a North Korean firm Korea Kwangson Banking Corp (KKBC), which is already under US and UN sanction for facilitating WMD.

Meanwhile, China has also tightened the noose on Dandong Hongxiang.

China's Foreign Ministry said last week that it is pursuing investigation against the company under provisions of UN resolution 2270.   

Chinese embassy spokesperson Fang Hong also confirmed that the company is being investigated for "illegal behavior" and "economic crimes."  She said China has been earnestly implementing the latest security council resolution against North Korea.   

Although China is North Korea's closest ally, the country has maintained that it won't hesitate from implementing the latest UN sanctions. 

Tagschina, China and North Korea, North Korea nuclear program, US and North Korea