WASHINGTON - THE United States on Tuesday imposed financial sanctions on a company in Iran that is accused of involvement in North Korea's missile proliferation network.

The Treasury Department moved against Hong Kong Electronics, a company located in Kish Island, Iran. The action means that any bank accounts or other financial assets found in the United States belonging to the company must be frozen. Americans also are prohibited from doing business with the firm.

It is the latest move by the United States to keep pressure on Pyongyang, whose nuclear ambitions have ratcheted up global tensions.

The designation came as US envoy Philip Goldberg, who is in charge of coordinating implementation of sanctions against the North, left for talks Thursday and Friday in China on ways to deal with the North. He was accompanied by senior officials from the Treasury and Defence departments and the White House.

A new UN resolution in the wake of a North Korean nuclear test in May seeks to stop the North's trading of banned weapons by requiring UN member states to request inspections of ships suspected of carrying prohibited cargo.

China's cooperation in enforcing sanctions against its neighbour is seen as crucial to increasing pressure meant to push the North back to nuclear disarmament talks.

The US Treasury Department said Tuesday that Hong Kong Electronics 'has transferred millions of dollars of proliferation-related funds' to North Korea's Tanchon Commercial Bank and Korea Mining Development Trading Corp The United States has previously moved to financially isolate those two companies, alleging that they have supported the spread of weapons of mass destruction.

Hong Kong Electronics 'has also facilitated the movement of money from Iran to North Korea' on behalf of Korea Mining, an arms dealer and main exporter of goods and equipment related to ballistic missiles and conventional weapons, Treasury said. Tanchon, a commercial bank based in Pyongyang, is the financial arm of Korea Mining, the department said.

Just a few weeks ago, the department's Financial Crimes Enforcement Network warned US banks that North Korea might try to skirt financial sanctions by using various 'deceptive practices.' The warning was aimed at making sure North Korea does not evade UN sanctions intended to prevent the financing of nuclear, ballistic missile and other weapons of mass destruction programs or activities. -- AP