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Banco Delta Asia, North Korea's Frozen Funds & US Undermining of the Six-Party Talks: Obstacles to a Solution. Part III

Published online by Cambridge University Press:  07 May 2025

John McGlynn
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This is the third article by John McGlynn in a series that meticulously dissects US charges of North Korean criminality, notably the forgery of US currency and money laundering, the significance of the legal instruments it has imposed on North Korea through Banco Delta Asia, and the significance of US actions for the resolution of the interrelated issues of North Korean nuclear weapons and the normalization of US-North Korean relations.

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Research Article
Information
Asia-Pacific Journal , Volume 5 , Issue 6 , June 2007 , e8
Creative Commons
Creative Common License - CCCreative Common License - BYCreative Common License - NCCreative Common License - ND
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-No Derivatives licence (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.
Copyright
Copyright © The Authors 2007

References

1. Sean McCormack (spokesperson), Daily Press Briefing, US State Department, Washington, DC, June 4, 2007.

2. US Treasury Department, Advisory from the Financial Crimes Enforcement Network (FinCEN), Guidance to Financial Institutions on the Provision of Banking Services to North Korean Government Agencies and Associated Front Companies Engaged in Illicit Activities, December 13, 2005.

3. See footnote 13.

4. An overview of the Section 311 special measures is available at FinCEN, a unit within the US Treasury Department.

5. Email received June 7, 2007 from Molly Millerwise, US Treasury Department spokesperson.

6. Regarding Treasury's review, ibid. Freedom of Information Act (FOIA) access to the acknowledgments was explained in a May 31, 2007 email received from Anne Marie Kelly, Senior Public Affairs Specialist, Financial Crimes Enforcement Network (FinCEN), US Department of the Treasury.

7. Based on language added under the Patriot Act to expand the scope of intelligence and counterintelligence activities to protect the US against international terrorism, the Director of FinCEN is authorized “to issue regulations to require all financial institutions … to maintain or file certain reports or records that have been determined to have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings, or in the conduct of intelligence or counterintelligence activities, including analysis, to protect against international terrorism, and to implement anti-money laundering programs and compliance procedures.” See the Final Rule against BDA available at the US Treasury Department's website.

8. Richard Posner, “The Constitution vs. Counterterrorism,” and Meredith Fuchs & G. Gregg Webb, “Greasing the Wheels of Justice: Independent Experts in National Security Cases,” American Bar Association National Security Law Report, Volume 28, Number 4, Standing Committee on Law and National Security, November 2006.

9. In the Matter of the Imposition of Special Measure Five Against Banco Delta Asia S.A.R.L, Petition of Mr. Stanley Au and Delta Asia Group (Holdings) Ltd. to Rescind Final Rule, May 3, 2007.

10. See the US Treasury Department's Finding and Final Rule related to BDA.

11. Donald Greenlees & David Lange, “The Money Trail That Linked North Korea to Macao,” New York Times, April 11, 2007 and Testimony of David Asher, Hearing Before the US-CHINA ECONOMIC AND SECURITY REVIEW COMMISSION, 109th Congress, second session, Sept. 14, 2006.

12. Testimony of Daniel Glaser, Deputy Assistant Secretary for Terrorist Financing and Financial Crimes, Office of Terrorism and Financial Intelligence, US Treasury Department, Isolating, Proliferators and Sponsors of Terror: The Use of Sanctions and the International Financial System to Change Regime Behavior, Joint Hearing of the Terrorism, Nonproliferation & Trade Subcommittee of the House Foreign Affairs Committee & the Domestic and International Monetary Policy, Trade & Technology Subcommittee of the House Financial Services Committee, 110th Congress, April 18, 2007.

13. See John S. Park's proposal at the ArmsControlWonk.com blog. Scroll to the June 4, 2007 blog entry titled “Sell Banco Delta Asia”.

14. Qin Gang, Foreign Ministry Spokesman, Regular Press Conference, China Ministry of Foreign Affairs, April 12, 2007.

15. For more on the alleged on connections to terrorism see the US Treasury Department's Final Rule on the Commercial Bank of Syria.

16. Cliff Knuckey, Managing Director, RISC Management Limited, UK, Syrian Banking & Financial Services Conference Speeches, Panel Session 5: How will US Sanctions Affect Economic Growth?

17. Online NewsHour, Justice Department Audit Reveals FBI Misused Patriot Act, an interview with Democratic Party Congressman Jerrold Nadler and Republican Party Congressman James Sensenbrenner, March 9, 2007 (transcript).

18. Peg Mackey and Simon Webb, “U.S. pressures energy firms, banks away from Iran,” Reuters, May 28, 2007.

19. Removal from the US State Department's list of terrorist states would lift some of the roughly 30 sanctions now in place against the DPRK. That would allow, for example, the DPRK to receive development loans from international and regional lending institutions.