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China 'regrets' US ruling on bank China 'regrets' US ruling on bank
(10 minutes later)
China has expressed its "deep regret" at a US ruling on a Macau-based bank linked to allegations of North Korean money-laundering and counterfeiting.China has expressed its "deep regret" at a US ruling on a Macau-based bank linked to allegations of North Korean money-laundering and counterfeiting.
Following an 18-month investigation, the US Treasury said on Wednesday that US banks and companies must sever all ties with Banco Delta Asia (BDA). The US Treasury said on Wednesday that US banks and companies must sever all ties with Banco Delta Asia (BDA), the subject of an 18-month investigation.
US envoy Christopher Hill said he did not think the move would block progress on a recently agreed nuclear deal.US envoy Christopher Hill said he did not think the move would block progress on a recently agreed nuclear deal.
North Korea has demanded that a freeze on its assets with BDA be lifted. But it was not clear if Washington's ruling would satisfy Pyongyang.
It was not clear whether Washington's decision on the bank will satisfy Pyongyang. North Korea had demanded that a freeze on its assets held by BDA be lifted.
'Blind eye''Blind eye'
"We deeply regret the ruling by the United States," China's foreign ministry spokesman Qin Gang said, defending the financial rules and regulations in the Chinese territory of Macau."We deeply regret the ruling by the United States," China's foreign ministry spokesman Qin Gang said, defending the financial rules and regulations in the Chinese territory of Macau.
"Our position is strong. Our measures are effective. We follow closely the international obligations.""Our position is strong. Our measures are effective. We follow closely the international obligations."
US Treasury Under-Secretary Stuart Levey said on Wednesday that the 18-month probe had confirmed BDA's "willingness to turn a blind eye to illicit activity, notably by its North Korean-related clients".US Treasury Under-Secretary Stuart Levey said on Wednesday that the 18-month probe had confirmed BDA's "willingness to turn a blind eye to illicit activity, notably by its North Korean-related clients".
But while the ruling bars the BDA from accessing the US banking system, it could also allow Macau's authorities to remove the bank from receivership and return some of North Korea's money.But while the ruling bars the BDA from accessing the US banking system, it could also allow Macau's authorities to remove the bank from receivership and return some of North Korea's money.
The US accused the BDA in September 2005 of acting as a conduit for money earned by Pyongyang from counterfeit currency and drug smuggling.
Soon afterwards the Macau authorities took control of the bank and froze accounts linked to North Korean clients - said to be worth $25m (£13m).
The US decision led North Korea to boycott talks on ending its nuclear programme for more than a year - only returning to the negotiating table in December after testing missiles and a nuclear weapon.
Pyongyang agreed in February, at a further round of six-party talks in Beijing, to "shut down and seal" its Yongbyon nuclear reactor in exchange for energy aid.
The six parties - the two Koreas, China, the US, Japan and Russia - are due to resume talks on Monday on the progress of the nuclear deal.
Christopher Hill said he was "confident" the talks would go ahead and that the ruling on the BDA would not "pose a stumbling block".