have testified that billions of yen in cash have been sent to North Korea in this manner.

One Japanese man living in Osaka, who worked for two decades at a North Korean-funded trading company in Japan, said Tuesday's ban will have only a short-term effect.

"Much of the money that reaches North Korea, especially the North Korean military program, comes via China and Chinese banks. Until China agrees to crack down on these banks and institutions, lots of money will still reach the North Korean military," said the man, who asked not be named.

Now that the government has banned the transmission of funds to some organizations, the next step is to monitor the sales of products, especially electronics, that might end up in North Korean weapons production.