U.S. and Macau (2009)

United States Department of State
Bureau of International Narcotics and Law Enforcement Affairs

2009 International Narcotics Control Strategy Report (INCSR)

February 27, 2009

Volume II: Money Laundering and Financial Crimes

March 2009

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Country Reports

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Korea, Democratic Peoples Republic of

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On September 15, 2005, the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) designated Macau-based Banco Delta Asia (BDA) as a primary money laundering concern under Section 311 of the USA PATRIOT Act and issued a proposed rule regarding the bank, citing the bank's systemic failures to safeguard against money laundering and other financial crimes. In its designation of BDA as a primary money laundering concern, FinCEN cited in the Federal Register "the involvement of North Korean Government agencies and front companies in a wide variety of illegal activities, including drug trafficking and the counterfeiting of goods and currency." Treasury finalized the Section 311 rule in March 2007, prohibiting U.S. financial institutions from opening or maintaining correspondent accounts for or on behalf of BDA. This rule remains in effect. Following the Section 311 designation of BDA, the Macau Monetary Authority (MMA) froze approximately U.S. $25 million in North Korean-related accounts at the bank. The MMA subsequently lifted the freeze on these funds following the issuance of the final rule.

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• Full report of the 2009 International Narcotics Control Strategy Report