US moves to release N Korea funds
The US has announced steps that could give North Korea access to
funds frozen in a Macau bank, one of its key demands for dismantling its
nuclear programme. The US Treasury has barred American banks from
dealings with Banco Delta Asia (BDA), whom it accused of a role in North
Korea-linked money laundering.
North Korean accounts worth $25m (Å“13m) have been frozen there since
2005. But the move formally ends the US probe and could allow officials
in Macau to release some of Pyongyang's money.
Last month, North Korea agreed to end its nuclear programme in return
for large quantities of foreign aid. Under the 13 February deal,
Pyongyang has 60 days to shut and seal its Yongbyon nuclear reactor. But
one of its key demands has been the release of its funds from BDA.
'Illicit activity'
In September 2005 the US accused the bank of acting as a conduit for
money earned by Pyongyang from counterfeit currency and drug smuggling.
Soon afterwards the Macau authorities took control of the bank and
froze North Korea's accounts. N Korea nuclear deal N Korea to 'shut down
and seal' Yongbyon reactor, then disable all nuclear facilities .In
return, will be given 1m tonnes of heavy fuel oil.
N. Korea to invite IAEA back to monitor deal .Under earlier 2005
deal, N Korea agreed to end nuclear programme and return to
non-proliferation treaty.
N Korea's demand for light water reactor to be discussed at
'appropriate time' US Treasury Under-Secretary Stuart Levey, announcing
the US action, said that the 18-month probe had confirmed BDA's
"willingness to turn a blind eye to illicit activity, notably by its
North Korean-related clients".
The measures mean US banks and companies must sever all ties with the
Macau-based institution.
But now, says the BBC's Jonathan Beale in Washington, it is up to the
Macau authorities whether any of North Korea's assets can be released.
The US is expected to issue guidance to financial regulators to identify
high-risk accounts. That could pave the way for North Korea to gain
access to some of its money.
BBC
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