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US Treasury Official Heads to China to Tackle BDA Issue

Written: 2007-03-24 14:09:26Updated: 0000-00-00 00:00:00

A senior U.S. Treasury official will travel again to China this weekend to resolve a banking transaction involving North Korea.

The U.S. government said Friday that Deputy Assistant Treasury Secretary Daniel Glaser will leave Saturday for Beijing with a delegation "to offer assistance to the Macanese and Chinese in addressing the issue of North Korean-related funds frozen at Banco Delta Asia (BDA)."

Glaser's trip was arranged after the six-party nuclear talks broke down this past week following a boycott by Pyongyang.

The BDA, a bank based in Macao, had frozen some 25 million dollars of North Korean funds after Washington designated it a primary money laundering concern facilitating Pyongyang's illicit financial transactions. After an 18-month investigation, Treasury officials announced Monday that the BDA would release the money and transfer it to a North Korean account at the Bank of China.

But the transfer was delayed due to what officials described as a lack of proper documents and other technical issues.

The Bank of China is said to be reluctant to receive the BDA money, concerned that accepting funds linked to North Korea's illicit activities would taint its reputation in the world financial community. The Chinese bank was reportedly seeking a written assurance from the U.S. that it will not be disadvantaged for accepting the funds from the blacklisted Macao bank.

North Korea walked out of the six-party nuclear talks in Beijing last week, insisting that it needs to see the funds in its account before it will participate.

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