Banco Delta Asia comes clean over purchase of gold from North Korea
Banco Delta Asia, labelled by the US Treasury as a "primary money laundering concern", has admitted that it purchased a large amount of gold from North Korea, one of its biggest exports.
Through its US lawyers Heller Ehrman, Delta Asia stated that it bought 9.2 tonnes of gold from North Korea in the three years to September 2005, selling it through Delta Asia Credit, its Hong Kong unit, and taking commission of $1.50 an ounce. The article said this raised $120 million for Pyongyang.
Delta Asia's Treasury filing also acknowledged that the bank had provided services to North Korea's Tanchon Commercial Bank, which had been blacklisted three months before by the US, deeming it the main North Korean financial agent for sales of conventional arms, ballistic missiles and related goods.
Delta Asia blames outdated technology for the oversight and for its inability to generate reports on unusual deposits and possible shortcomings in screening retail cash deposits for counterfeit currency. Ernst & Young, which reviewed the bank's operations last year, found that the bank paid insufficient attention to maintaining its own books and had identified a North Korea-related account that bank staff had missed during the original asset freeze.
Delta Asia's statement is an attempt to get the US Treasury to lift its labelling as a primary money laundering concern, which had caused other banks to break off commercial ties with Delta Asia, and had panicked customers.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Industry calls for major rethink of Basel III rules
Isda AGM: Divergence on implementation suggests rules could be flawed, bankers say
Saudi Arabia poised to become clean netting jurisdiction
Isda AGM: Netting regulation awaiting final approvals from regulators
Japanese megabanks shun internal models as FRTB bites
Isda AGM: All in-scope banks opt for standardised approach to market risk; Nomura eyes IMA in 2025
CFTC chair backs easing of G-Sib surcharge in Basel endgame
Isda AGM: Fed’s proposed surcharge changes could hike client clearing cost by 80%
UK investment firms feeling the heat on prudential rules
Signs firms are falling behind FCA’s expectations on wind-down and liquidity risk management
The American way: a stress-test substitute for Basel’s IRRBB?
Bankers divided over new CCAR scenario designed to bridge supervisory gap exposed by SVB failure
Industry warns CFTC against rushing to regulate AI for trading
Vote on workplan pulled amid calls to avoid duplicating rules from other regulatory agencies
Bank of Communications moves early to meet TLAC requirements
China Construction Bank becomes last China G-Sib to release TLAC plans
Most read
- Top 10 operational risks for 2024
- Top 10 op risks: third parties stoke cyber risk
- Japanese megabanks shun internal models as FRTB bites