ICAS Special Contribution


Treasury Statement on the Disposition of North Korea-Related Funds Frozen at Banco Delta Asia

Daniel L. Glaser

Institute for Corean-American Studies, Inc.

965 Clover Court, Blue Bell, PA 19422

Email: icas@icasinc.org

Biographic Sketch & Links: Daniel L. Glaser

[Editor's note: We gratefully acknowledge the special contribution of this paper
with written permission to ICAS of Daniel L. Glaser . sjk]

Treasury Statement on the Disposition of North Korea-Related Funds Frozen at Banco Delta Asia

Daniel L. Glaser
Deputy Assitant Secretary for Terrorist Financing and Financial Crimes

Beijing, CHINA Daniel Glaser, the Treasury Department's Deputy Assistant Secretary for Terrorist Financing and Financial Crimes, made the following statement today on the disposition of North Korean-related funds frozen at Banco Delta Asia in Macau.

"The United States and North Korean Governments have reached an understanding on the disposition of DPRK-related funds frozen at Banco Delta Asia.

"The DPRK has proposed the transfer of the roughly $25 million frozen in BDA into an account held by North Korea's Foreign Trade Bank at the Bank of China in Beijing.

"North Korea has pledged, within the framework of the Six-Party Talks, that these funds will be used solely for the betterment of the North Korean people, including for humanitarian and educational purposes. We believe this resolves the issue of the DPRK-related frozen funds.

"The disposition of the frozen assets has always been and remains a decision by the Macanese authorities to be taken in accordance with Macanese law. North Korea will need to work out the legal and technical intricacies of the arrangement with the Macanese. The Treasury has communicated to both the Macanese and Chinese Governments the United States' support of this arrangement.

"Separately, the final rule against Banco Delta Asia, issued by the Treasury Department under Section 311 of the USA PATRIOT Act, remains in place. The Treasury will continue to cooperate with the Macanese on this and other anti-money laundering issues.

"The events of the past 18 months demonstrate our lack of tolerance for illicit activity conducted in the global financial system. Financial institutions that facilitate weapons proliferation, terrorist financing, narcotics trafficking, and other illicit financial activity should be on notice of the significant consequences they face."

This page last updated 3/21/2007 jdb

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