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Russia to transfer N. Korean funds via U.S. bank: S. Korean sources
SEOUL, June 10 (Yonhap) -- Russia has accepted a U.S. request to help facilitate the transfer of US$25 million in "tainted" North Korean funds to get the communist country to keep its promise of dismantling its nuclear weapons program, South Korean sources said Sunday.
Earlier this year, the U.S. agreed to unfreeze the money at the Macau-based Banco Delta Asia to win North Korea's agreement to shut down its nuclear facilities in return for aid. Earlier, the U.S. had frozen the money, accusing the bank of money-laundering for North Korea.
The transfer, however, was never made because of difficulties in finding a financial institutions willing to do the transfer. This problem caused the North to miss an April 14 deadline to shut down its sole nuclear plant in Yongbyon, a key agreed-upon initial disarmament procedure.
The U.S. recently proposed that a Russian bank accept the funds via a U.S. financial institution before sending them back to the communist country, and the Russian side accepted the idea, said a South Korean government source privy to the banking issue.
The proposal was made after top officials of the U.S., Russia, South Korea and China agreed on a solution to the banking dispute to which "all concerned parties can accede," the source said, on condition of anonymity.
To carry out the international money transactions, the U.S. is expected to temporarily bend its rules banning American banks from dealing with the Macau bank, said another South Korean government source, also on condition of anonymity.
The name of a U.S. bank, which will play the "intermediary role," will not be disclosed to help smooth the process, the source said, adding it would not be Wachovia Corp., the fourth largest U.S. bank that once considered helping with the fund transactions.
"With the new idea, which the U.S. China and Russia agree on, being pushed in a positive atmosphere, the chances for the transfer of the North Korean funds are getting higher," the source said.
Pyongyang wants to get the money back through a U.S. institution, believing that would enable it to have continued access to the international financial system, although the North could withdraw the money in cash and ship it home, according to press reports.
Several foreign banks were also asked to help process the transfer but were reluctant to do so as they were worried about tarnishing their images and getting cut off from the U.S. financial system, the reports said.
hyungjin@yna.co.kr
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