WASHINGTON ( CNN ) -- The United States on Tuesday imposed financial sanctions on an Iran-based company that it said is a cover for North Korea 's missile proliferation network , the Department of the Treasury announced . Hong Kong Electronics in Kish Island , Iran , was added to the list of `` designated proliferators of weapons of mass destruction and their supporters '' for working with two others already on the list : North Korea 's Tanchon Commercial Bank and the Korea Mining Development Trading Corp. ( KOMID ) , according to a Treasury news release . The designation under Executive Order 13382 freezes any U.S. assets of Hong Kong Electronics and prohibits any transactions with the company by U.S. individuals , companies or financial institutions , the statement said . `` North Korea uses front companies like Hong Kong Electronics and a range of other deceptive practices to obscure the true nature of its financial dealings , making it nearly impossible for responsible banks and governments to distinguish legitimate from illegitimate North Korean transactions , '' said Stuart Levey , the undersecretary for terrorism and financial intelligence at the Treasury . `` Today 's action is a part of our overall effort to prevent North Korea from misusing the international financial system to advance its nuclear and missile programs and to sell dangerous technology around the world . '' The Treasury statement alleged that Hong Kong Electronics has transferred millions of dollars of proliferation-related funds on behalf of Tanchon and KOMID since 2007 . It also accused Hong Kong Electronics of facilitating the movement of money from Iran to North Korea on behalf of KOMID . Tanchon , a commercial bank based in Pyongyang , North Korea , is the financial arm for KOMID , which the Treasury statement described as North Korea 's premier arms dealer and main exporter of goods and equipment related to ballistic missiles and conventional weapons . Both Tanchon and KOMID were previously subjected to sanctions under Executive Order 13382 and sanctioned by the U.N. Security Council , according to the Treasury statement . It said both also had ties with other sanctioned entities , including Iran 's Shahid Hemmat Industrial Group , which it called the Iranian organization responsible for developing liquid-fueled missiles .
Hong Kong Electronics called a cover for North Korea 's missile defense network . U.S. Treasury says company 's U.S. assets frozen , transactions in U.S. prohibited . It says company worked with bank , arms dealer tied to other sanctioned entities . Goal is to stop misuse of financial system to advance arms programs , Treasury said .