Banco Delta Asia

Delta Asia Financial Group (Portuguese: Banco Delta Ásia S.A.R.L.; traditional Chinese: 滙業銀行; simplified Chinese: 汇业银行; pinyin: Huìyè Yínháng) is a Macao-based bank owned by the Delta Asia Financial Group and founded in 1935 by Au Wing Ngok, father of Stanley Au, the current chairman and majority shareholder. It is the 10th largest bank in Macao with eight branches and 150 employees.

In March 2007, the U.S. Treasury ordered U.S. companies and financial institutions to cut links with the bank on account of allegations concerning BDA's business with the government of North Korea, which at that time kept $25 million at the bank in various accounts. The case is considered a notable use of Section 311 the USA Patriot Act to crack down on the use of the international financial system by "rogue states" and "state sponsors of terrorism".

Although virtually every bank in Macao handled North Korean funds, U.S. regulators singled out BDA because the shutdown of a smaller bank would create less financial disruption. North Korea was able to gain access to funds deposited at the bank by raising the issue with the United States at the Six-party talks on nuclear weapons technology in Beijing. However, the bank remains under U.S. sanction and is therefore unable to conduct business in either U.S. dollars or in Hong Kong dollars. The sanctions are said to have intimidated other banks from doing business with North Korea and disrupted the country's system for transferring foreign exchange. Macau has responded by stepping up enforcement of anti money laundering laws.

The bank has been accused of engaging in money laundering and distribution of superdollars for the government of North Korea. In September 2005, the impending imposition of sanctions by the United States was announced, which triggered a massive bank run. As a result, the Macao Government invoked a banking law to replace the bank's board by government appointees. As a result of this, several North Korean companies in Macao which had accounts with the bank, including Zokwang Trading, had their accounts frozen.Kim Jong Nam, the eldest son of North Korea's leader Kim Jong Il, had lived in Macao since 2004, when the United States imposed sanctions on a bank in Macao for allegedly helping Pyongyang launder money. However, the United States agreed to resolve the issue of frozen North Korean bank accounts in Macao's Banco Delta Asia if North Korea disarms its atomic arsenal.

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Wikipedia