Mnuchin made clear that the United States is "in no way targeting China with these actions" and that USA officials "look forward to continuing to work closely with the government of China to stop the illicit financing in North Korea".
Dandong - a northeastern Chinese city on the North Korean border - is a gateway for trade with isolated North Korea.
The sanctions also come one week after the United States and China failed to announce a joint action plan to freeze North Korea's nuclear programme after their first Diplomacy and Security Dialogue in Washington, but reached a consensus on not doing business with any UN-designated North Korean entities.
Anthony Ruggiero a former senior Treasury official in the Office of Terrorist Financing and Financial Crimes, said the action against Bank of Dandong is the first time US authorities sought to punish a Chinese bank accused of helping North Korea.
The Treasury Department says that the Bank of Dandong is a "primary money-laundering concern".
The chinese bank Bank of Dandong is accused by the u.s. department of serve as an intermediary "to illicit financial activity on the part of North Korea", by facilitating millions of dollars in transactions for the benefit of companies involved in the development of ballistic missiles.
"While we will continue to seek global cooperation on North Korea, the United States is sending an emphatic message across the globe that we will not hesitate to take action against persons, companies, and financial institutions who enable this regime", Treasury Secretary Steve Mnuchin said in a statement.
Bodies of missing U.S. sailors found
Aucoin, said on Saturday that he was "humbled by the bravery and tenacity of the Fitzgerald crew" during and after the incident. The Philippine ship is 29,060 tons and 730 long, the coast guard said, much larger than the 8,315-ton naval destroyer.
In addition, Treasurys Office of Foreign Assets Control (OFAC) also slapped sanctions on a Chinese shipping company and two Chinese people that it said have facilitated illegal activities by North Korea.
According to a press release from the Treasury, these initiatives "have been taken in response to the circumvention ongoing worldwide sanctions by North Korea, as well as the development of weapons of mass destruction". The Treasury said the two individuals have been linked to front or cover companies on behalf of North Korean institutions. This action freezes the entire bank out of the USA financial system. We are in no way targeting China with these actions.
The US Ambassador to China Terry Branstad, who arrived in Beijing on Tuesday, spoke to reporters outside his residence yesterday and said the US hopes to collaborate with China.
"While I greatly appreciate the efforts of President Xi & China to help with North Korea, it has not worked out", Trump tweeted on June 20.
'We are committed to targeting North Korea's eternal enablers, ' he said, 'and maximizing economic pressure on the regime, until it ceases its nuclear and ballistic missile programs'. It cited a United Nations expert panel as saying the company has violated a ban on trade in luxury goods with the North.
Beijing has, however, repeatedly said it's influence is limited and that it is doing all it can.