Banco Delta Asia Ruling Complicates North Korean Nuclear Deal

Publication Date: March 2007

Publisher: Heritage Foundation (Washington, D.C.)

Author(s): Bruce Klingner

Research Area: Economics

Keywords: Asia and the Pacific

Type: Brief

Coverage: Korea (North)

Abstract:

The U.S. Treasury Department's March 14 ruling against a Macau-based bank for its complicity in North Korea's illegal activities could further the Six-Party Talks if Macau releases Pyongyang's seized accounts. But Pyongyang's expectation that it will overcome its isolation from international financial networks is unrealistic and could lead it to delay compliance with the preliminary agreement. Nonetheless, the U.S. should continue its financial and law enforcement efforts to combat North Korea's illicit activities.