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Delta Asia blames outdated technology for the oversight and for its inability to generate reports on unusual deposits and possible shortcomings in screening retail cash deposits for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.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
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. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Fed fractures post-SVB consensus on emergency liquidity
New supervisory principles support FHLB funding over discount window preparedness
Why UPIs could spell goodbye for OTC-Isins
Critics warn UK will miss opportunity to simplify transaction reporting if it spurns UPI
EC’s closing auction plan faces cool reception from markets
Participants say proposal for multiple EU equity closing auctions would split price formation
Fed pivots to material risk – but what is it, exactly?
Top US bank regulator will prioritise risks that matter most, but they could prove hard to pinpoint
Hopes rise for EU re-entry to UK swaps market
EC says discussions on draft decision softening derivatives trading obligation are ‘advanced’
BoE’s Ramsden defends UK’s ring-fencing regime
Deputy governor also says regulatory reform is coming to the UK gilt repo market
Credit spread risk: the cryptic peril on bank balance sheets
Some bankers fear EU regulatory push on CSRBB has done little to improve risk management
Credit spread risk approach differs among EU banks, survey finds
KPMG survey of more than 90 banks reveals disagreement on how to treat liabilities and loans