US Treasury investigators have determined that as much as half of the 24 million dollars in North Korean money frozen at a Macau bank came from legitimate business activity, South Korean media reported Thursday.
Korea expert Don Oberdorfer told JoongAng Ilbo that at least eight million dollars at Banco Delta Asia had been verified as legal: six million belonging to Daedong Credit Bank, a Hong Kong joint venture, and two million in payments by British American Tobacco. Yonhap news agency separately cited Washington sources putting the legitimate portion at 12 million dollars, half the total.
The Treasury declined to comment and maintained that it was Macanese authorities who had blocked the accounts. A spokeswoman noted the bank was blacklisted in September 2005 under Section 311 of the Patriot Act for allegedly facilitating illicit financial activity on behalf of North Korea.
The dispute has complicated six-party talks on North Korea's nuclear program. Pyongyang, which conducted its first atomic test last month, boycotted the negotiations for a year over the freeze and said it would only return if the financial sanctions issue was addressed within the talks framework.
Chief US negotiator Christopher Hill said Washington would establish a working group to address the matter. Analysts noted that while 24 million dollars is not an enormous sum, North Korea's dependence on foreign banking channels makes the financial pressure consequential.
Historical summary. TurkishPress restated this wire report, first published in November 2006, in its own words.