Asia-Pacific

Bank: N.Korean accounts appeared legit

(AP)
Updated: 2007-03-29 13:37

HONG KONG - The head of a Macau bank holding $25 million in North Korean funds denied Thursday that the money was linked to illicit dealings as alleged by the United States.

The 50 North Korean accounts at Banco Delta Asia were frozen in September 2005 after the US accused the bank of helping Pyongyang launder money and handle counterfeit US bills.

The fate of the allegedly tainted funds has hobbled North Korea's negotiations with South Korea, the US, Japan, Russia and China to disarm its nuclear program.

North Korea pulled out of the talks last week because the funds in Macau had not been released.

The US supports moving the money to a Bank of China account in Beijing but the transfer, which was supposed to go through last week, has not cleared because of unspecified technical reasons.

Delegates to the nuclear talks said earlier that the US needs to assure the receiving Chinese bank that it would not be penalized for accepting the transfer of funds tainted by accusations of illicit dealings.

But Banco Delta Asia owner Stanley Au said there had been no proof that the North Korean accounts were linked to counterfeiting or money laundering and that the account holders had not been blacklisted before the US accusations in 2005.

"To the best of my knowledge, those North Korean-related account holders at BDA as at September 2005 have not been blacklisted by any relevant authorities," Au said in a statement published in Hong Kong newspapers Thursday.

"Also, there appears to be no formal legal action against any of such account holders by any government authority for any of the illicit activities as alleged," Au said in the half-page advertisement.

He said Banco Delta Asia has done business with North Koreans for "many decades," and that "it has always been the belief of BDA that these were normal business transactions."

Au said earlier the bank neither knew nor suspected that its North Korean customers took part in illegal activities.

The owner also restated earlier comments that auditors had cleared the bank of wrongdoing.

The US has cut off Banco Delta Asia from its financial system.

The status of the $25 million remains unclear.

Spokeswoman Wendy Au at Macau's monetary authority declined comment Thursday and a Banco Delta Asia spokesman didn't immediately return a reporter's call.

A British investor is also trying to block part of the transfer.

Colin McAskill wants to transfer $7 million of the frozen funds that belong to North Korean lender Daedong Credit Bank to a temporary account at another Macau bank and later move it to one of Daedong's correspondent banks.

McAskill has agreed to buy Daedong Credit Bank, a majority foreign-owned lender.

He said Tuesday he was trying to contact Macau's monetary authority about his request. McAskill declined comment Thursday on his progress.