BOC linked to Pyongyang freeze
The Bank of China has frozen North Korean accounts in response to a US- led crackdown on Pyongyang's alleged illegal financial activities, according to a South Korean legislator.
Tuesday, July 25, 2006
The Bank of China has frozen North Korean accounts in response to a US- led crackdown on Pyongyang's alleged illegal financial activities, according to a South Korean legislator.
BOC's move was tantamount to China imposing sanctions on its long- time ally, Park Jin, a key member of the main opposition Grand National Party said Monday.
"I understand North Korea is even more frustrated because it regards the freezing of its accounts in China as virtual sanctions," he said in an interview with the Munhwa newspaper.
Park, who has just returned from a trip to Washington, quoted former and incumbent US officials as saying that Washington was aware of Beijing's move late last year when it accused Macau-based Banco Delta Asia of helping Pyongyang launder earnings from counterfeiting US bank notes.
Park said that he had also heard that North Korea was suspected of counterfeiting yuan banknotes as well as US dollars.
"So China cannot but launch separate sanctions on counterfeiting and money laundering by North Korea,' he said. "I understand cooperation is under way between the United states and China to stop North Korea's illegal activities."
However, mainland government and banking officials refused to comment Monday on the report.
"If we have an answer we will tell you, if we don't have an answer we won't tell you," a BOC spokesman surnamed Miao said, refusing to comment further.
The Foreign Ministry also declined to comment on the issue, with a spokeswoman referring queries to the BOC and the central bank. The US Treasury Department in September told US financial institutions to stop dealing with Banco Delta Asia.
A month later, the US blacklisted eight North Korean companies allegedly involved in the spread of weapons of mass destruction. Pyongyang has responded to the US sanctions by boycotting six-party talks aimed at ending its nuclear weapons program.
Park said that North Korea moved its accounts to other Chinese banks after US officials launched an investigation into Banco Delta Asia. "I understand the Bank of China stopped dealing with North Korea as the United States expanded its probe," he said. North Korea fears the US probe may affect its accounts in Singapore, Austria, Switzerland and Russia, he said.
BOC is the mainland's second largest bank and recently listed in Hong Kong where it raised more than US$11 billion (HK$85.8 billion) in one of the largest new share offers ever. It traditionally conducted forex business for mainland groups and companies but has expanded its range in recent years.
AGENCE FRANCE-PRESSE