The North Korean accounts in Macao's Banco Delta Asia were frozen in September 2005 at the request of Washington, which accused the reclusive Communist regime of counterfeiting and money laundering, a move that hardened Pyongyang's insistence on pursuing its nuclear program. The funds were unfrozen earlier this year, but sanctions against the Chinese bank remain in place.
"Until the U.S. Treasury lifts restrictions on operations with Banco Delta Asia, no sensible banks will deal with transfers of North Korean funds," Deputy Foreign Minister Alexander Losyukov told RIA Novosti on Tuesday at the end of a two-day visit to Iran. The diplomat denied rumors that Russian banks had been involved in money transfers from North Korea.
North Korea's $25 million in the bank was unfrozen in March in an attempt to win Pyongyang's promise to close its Yongbyon nuclear reactor. But the funds' transfer has been stalled due to Washington's blacklisting of the bank, making other banks wary of handling North Korean funds and dealing with the bank. In response, the regime has delayed shutting down its reactor, which it had agreed to do in April.
Russian banks "could have handled this matter because it involves profits from transaction fees, but they have no reason to do so because none of the banks would want to see their reputations damaged over this," the Russian diplomat said.
He also said a new round of talks on North Korea's nuclear program could start as soon as the deadlock with bank accounts has been resolved.
"The process of shutting down North Korea's nuclear facilities has been outlined, and the North Korean side said they were ready to move on. So now we have to settle this financial problem," Losyukov said.
Pyongyang has pledged to fulfill its commitments agreed at talks in February with five countries negotiating the protracted nuclear issue - Russia, the U.S., South Korea, China and Japan - as soon as it receives the funds.
The impoverished nation has been cut off from global financial markets for several years and has used cash or complicated barter schemes to pay for supplies and services from other states.
The country, which conducted its first nuclear bomb tests in October 2006, has boycotted disarmament talks for more than a year over the funds.
