North Korea has reportedly introduced a law to prevent money laundering in order to meet global standards on financial transactions following U.S. sanctions that froze North Korean accounts at Macao's Banco Delta Asia.

South Korea's National Intelligence Service chief Kim Man-bok on Tuesday told the National Assembly's information committee that the North’s Supreme People`s Assembly adopted the law in October last year.

The new law bans financial transactions and creation of illegal funds through the sales of counterfeit bills, illegal property and drugs. It also prohibits financial institutions from opening bank accounts under false names, and requires them to monitor and report suspicious deals to the proper authorities.