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U.S. treasury findings against Banco Delta Asia challenged
March 17, 2007
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Delta Asia Financial’s chairman, Stanley Au, rejected the U.S. Treasury Department’s conclusion that his bank gave its North Korean clients access to the banking system with little supervision and facilitated financial transactions involving the North’s trade in counterfeit U.S. dollars. “We have sent evidence to prove our innocence to the U.S. government several times,” said Mr. Au, whose family founded Banco Delta Asia in 1935. He said that after the U.S. Treasury Department designated the bank as a money launderer in September 2005, the firm hired Ernst & Young, an internationally accredited accounting company, at great expense to strengthen its defenses against money laundering. The U.S. Treasury Department concluded an 18-month probe into Banco Delta Asia this week, saying the firm would be cut off from U.S. banks. The decision opens the way for the unfreezing of $25 million in North Korean assets, which Pyongyang has been demanding as a precondition for continued six-party nuclear talks. Mr. Au said he hopes the United States will reverse its decision to cut all financial ties between American banks and his company. Mr. Au said he is taking steps to counter the U.S. decision in court. Also yesterday, a Chinese Foreign Ministry spokesperson expressed “regret at the United States insisting on using U.S. domestic law to apply a ruling” on foreign soil. Mr. Au’s challenge came as the U.S. treasury sent an official to Macao to meet with government officials on Thursday, U.S. time, to help the Macao authorities decide the fate of the North Korean assets frozen at the bank. Daniel Glaser, deputy assistant secretary of the treasury, will brief Macao officials on the information Washington has obtained about the bank, a move that should lead to unfreezing at least a portion of the assets. U.S. State Department spokesman Sean McCormack said it is important that Macao officials “have access to all the information that we have managed to accumulate through our forensics as well as our analysis of the situation so they can make a judgment about the money in all of the accounts and what the disposition of those funds will be.” The U.S. insists the fate of the assets is the decision of tiny Macao, which is self-governing but ultimately ruled by Beijing. It is almost certain, however, that the matter is subject to negotiation between Beijing and Washington, given the sensitive nature of the six-party talks. After visiting Macao, Mr. Glaser will travel to Beijing to meet with Chinese officials, presumably to ease their unhappiness. Banco Delta’s Mr. Au said yesterday he does not know what information Mr. Glaser will present to the Macao authorities. A diplomatic source in Washington told the JoongAng Ilbo that Mr. Glaser will present evidence that North Korea had used Banco Delta Asia to pass counterfeit hundred dollar bills. The bank was also used for transactions with the North’s Tanchon Commercial Bank, which has been the financial source for missile development. The period of local court oversight on Banco Delta Asia will expire at the end of this month, and observers said Macao authorities will likely extend the deadline to gain more time to resolve the frozen assets dilemma. By Ser Myo-ja Staff Writer [myoja@joongang.co.kr] |
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