Revisions in the latest National Defense Authorization Act(NDAA) now allow the U.S. Treasury Secretary to slap sanctions on overseas financial institutions that knowingly provide significant financial services to entities targeted by North Korea-related sanctions.

The U.S. Treasury Department said on Thursday it has revised regulations regarding North Korea sanctions to incorporate related provisions in the latest NDAA.  

These include "blocking sanctions" on the financial institutions or a ban or strict conditions on the opening or maintenance of correspondent or payable-through accounts in the United States.

The Treasury Department explained that the move brings its regulations in line with the "Otto Warmbier North Korea Sanctions and Enforcement Act," a section of the latest NDAA for the fiscal year 2020. 

The section requires the president to designate any person that he determines "knowingly engages in" certain specified North Korea-related activities.  

The U.S. created the North Korea Sanctions Act in 2016 in response to the North's nuclear and long-range missile tests and the U.S. Treasury has updated the act's regulations when related laws were amended. 

The Treasury said that the revisions will go into effect on Friday after they have been published in the Federal Register.