North Korean Funds From Macao Said to Reach US Bank

Jun 15, 05:54 AM

Current Headlines: Text of report in English by Japanese news agency Kyodo

Macao, June 15 Kyodo - The Macao Monetary Authority told Kyodo News on Friday that North Korea-linked funds transferred from a blacklisted Macao bank have already reached the Federal Reserve Bank of New York, which is acting as an intermediary in getting the funds back to North Korea.

The funds are henceforth expected to be transferred to Russia's central bank en route to a commercial bank in Russia where North Korea holds accounts.

The Macao authority said that no North Korea-related funds remain at Banco Delta Asia SARL.

North Korea has made the return of the funds a prerequisite for returning to the six-party talks over the country's nuclear programmes and moving to shut its key Yongbyon nuclear facility.

The United States, North Korea and four other countries - China, Japan, South Korea and Russia - originally agreed in February on a plan to close the Yongbyon facility, but the disarmament talks have stalled pending a resolution to the financial matter.

Under the Feb. 13 deal, North Korea agreed to shut down and seal the nuclear complex, about 90 kilometres north of the capital Pyongyang, and to invite International Atomic Energy Agency inspectors back to the country by April 14 in return for energy aid.

North Korea, however, has refused to implement the initial steps stipulated in the February agreement until it receives the money.

The funds had been frozen at the Macao bank because the United States accused the bank of helping Pyongyang to launder money and circulate counterfeit currency.

While the Macao monetary authorities had unblocked the funds in April, technical and legal issues had prevented the transfer of the money from the bank.

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