[USFK Forums] S. Korean bank joins US sanctions against North Korea [AFP]

[C. Y. Lee]

Uploaded by C. Y. Lee on Saturday, February 4, 2006

South Korean bank joins US sanctions against North Korea

Thu Feb 2, 9:24 PM ET

Seoul (AFP) - Korea Exchange Bank, controlled by US equity fund Lone Star, has terminated all transactions with Banco Delta Asia, accused by Washington of laundering money for North Korea.

The bank is the first South Korean financial institution to join US-imposed sanctions against the Macau-based bank."We terminated all transactions with the Banco Delta, including remittance and foreign exchange dealings, on Wednesday" a bank spokeswoman told AFP.

The decision was made to protect the interests of clients and the bank, she said.

"This is a voluntary decision and there were absolutely no orders from the South Korean financial authorities or Lone Star," she said.

The US Treasury in September labelled Banco Delta Asia a "primary money laundering concern" and blacklisted eight North Korean companies in connection with the bank, saying they were involved in spreading weapons of mass destruction.

North Korea pockets up to one billion dollars a year from counterfeiting US greenbacks, trafficking illicit narcotics, smuggling contraband cigarettes and even peddling fake sexual aid drugs for men, according to the US government.

North Korea has refused to return to six-party nuclear talks unless the United States lifts the sanctions imposed over the communist state's alleged counterfeiting and money laundering activities.

The talks, involving the United States, China, the two Koreas, Japan and Russia, are aimed at disarming North Korea's nuclear weapons in return for diplomatic, security and energy aid guarantees to the impoverished nation.

But President George W. Bush said that the United States would not compromise on the financial sanctions to resolve the nuclear stand-off.



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