A U.N. development agency has resumed operations in North Korea after a more than two-year pause following allegations of fraud.

The North's Korean Central News Agency said a ceremony Wednesday marked the return of U.N. Development Program to the country.

UNDP withdrew its operations in March 2007 following allegations that the agency had left itself open to exploitation by the communist regime for money laundering and other illicit purposes.

A U.N. audit cleared UNDP of wrongdoing in June last year, saying the agency knew of no improper financial dealings.

Yonhap news agency reported that UNDP decided to restart its North Korea projects after Pyongyang guaranteed independent auditing and administrative changes to ensure the transparent use of funds.