Delta Asia Financial Group
Delta Asia Financial Group ({{langx|pt|Banco Delta Ásia S.A.R.L.}}; {{zh|first=t|t=滙業銀行|s=汇业银行|p=Huìyè Yínháng}}) is a Macau-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.{{Cite web |url=http://www.delta-asia.com/eng/aboutus_gh.html |title=Delta Asia Financial Group |access-date=2008-06-09 |archive-url=https://web.archive.org/web/20080725003147/http://www.delta-asia.com/eng/aboutus_gh.html |archive-date=2008-07-25 |url-status=dead }} It is the 10th largest bank in Macau with eight branches and 150 employees.{{cite news| url=https://www.nytimes.com/2007/09/29/world/asia/29bank_web.html?ex=1348718400&en=e614e1ee340e9c06&ei=5124&partner=permalink&exprod=permalinkNo | work=The New York Times | title=Blacklisted Bank to Return to Original Owner | first=Donald | last=Greenlees | date=2007-09-29 | accessdate=2010-04-26}}[http://chinamatters.blogspot.com/2007/05/stanley-au-makes-his-case-for-banco.html China Matters: Stanley Au Makes His Case for Banco Delta Asia]
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 Banco Delta Asia'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".[http://ibdeditorial.com/IBDArticles.aspx?id=257558795390019 IBDeditorials.com: Editorials, Political Cartoons, and Polls from Investor's Business Daily – New Sanctions, Unlike The Old, Seem To Work][http://www.iht.com/articles/2007/01/18/news/north.php?page=1 Squeeze on Banco Delta Asia hit North Korea where it hurt – International Herald Tribune]
Although virtually every bank in Macau handled North Korean funds, U.S. regulators singled out Banco Delta Asia because the shutdown of a smaller bank would create less financial disruption.{{cite news| url=https://www.nytimes.com/2007/04/13/world/asia/13macao.html?_r=5&ref=asia&pagewanted=all&oref=slogin&oref=slogin&oref=slogin&oref=slog&oref=login | work=The New York Times | title=Trail Led to Macao as Focus of North Korean Corruption | first1=Donald | last1=Greenlees | first2=David | last2=Lague | date=2007-04-13 | accessdate=2010-04-26}} 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. 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.
North Korea and the Six-party talks
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 Macau Government invoked a banking law to replace the bank's board by government appointees.{{cite web|url=http://www.thestandard.com.hk/news_detail.asp?we_cat=4&art_id=2338&sid=4782658&con_type=1&d_str=20050929|title=Banco Delta board yields control|publisher=The Standard|date=2005-09-29|accessdate=2007-03-20| archiveurl= https://web.archive.org/web/20070311015114/http://www.thestandard.com.hk/news_detail.asp?we_cat=4&art_id=2338&sid=4782658&con_type=1&d_str=20050929| archivedate= 11 March 2007 | url-status= live}}{{cite web|url=http://www.globalsecurity.org/security/library/news/2005/09/sec-050915-usia02.htm|title=U.S. Cites Banco Delta Asia for Money Laundering, Other Crimes|publisher=GlobalSecurity.org|date=2005-09-15|accessdate=2007-03-20| archiveurl= https://web.archive.org/web/20070310220508/http://www.globalsecurity.org/security/library/news/2005/09/sec-050915-usia02.htm| archivedate= 10 March 2007 | url-status= live}} As a result of this, several North Korean companies in Macau which had accounts with the bank, including Zokwang Trading, had their accounts frozen.{{cite web|url=http://article.joins.com/article/article.asp?ctg=10&Total_ID=2476538|title=北, BDA계좌동결 후 3개국서 계좌개설|publisher=Joongang Daily|date=2006-10-16|accessdate=2007-03-20|language=Korean}} However, the United States agreed to resolve the issue of frozen Banco Delta Asia bank accounts, if North Korea disarms its atomic arsenal.{{cite news|url=http://www.boston.com/news/world/asia/articles/2007/02/14/give_and_take/|title=Give and take|accessdate = 2007-02-14|publisher=Boston.com World News| date=2007-02-14}}
An audit by Ernst & Young commissioned by the Macau government found no evidence that the bank had facilitated money laundering.{{cite news| url=http://www.realcities.com/mld/krwashington/16812231.htm| date=2007-02-01| title=Accounting firm finds no evidence of money laundering| first=Kevin G.| last= Hall| publisher=McClatchy Newspapers| accessdate=2007-03-01| archiveurl= https://web.archive.org/web/20070304072915/http://www.realcities.com/mld/krwashington/16812231.htm| archivedate= 4 March 2007 | url-status= live}}
On March 14, 2007, the U.S. Treasury Department ordered all U.S. banks and companies to sever ties with Banco Delta Asia, following an 18-month investigation. U.S. Treasury Under-Secretary Stuart Levey stated that the investigation confirmed the bank's "willingness to turn a blind eye to illicit activity, notably by its North Korean-related client".{{cite news|url=http://news.bbc.co.uk/2/hi/asia-pacific/6452857.stm|title=China 'regrets' US ruling on bank|publisher=BBC News|date=2007-03-15|accessdate=2007-03-16| archiveurl= https://web.archive.org/web/20070317195532/http://news.bbc.co.uk/2/hi/asia-pacific/6452857.stm| archivedate= 17 March 2007 | url-status= live}} A mini-bank run ensued, although only 10% of the bank's cash reserves were drawn out.
In September 2007, the Monetary Authority of Macau ended its intervention and the bank was returned to management by owner Stanley Au. No criminal charges were ever filed in Macau. The bank remains blacklisted by the U.S. Treasury Department and is not authorized to conduct transactions in U.S. dollars.
Lifting of the sanctions
On August 11, 2020, the U.S. Treasury Department announced that it had decided to revoke its sanctions and restrictions against Banco Delta Asia. The sanctions were lifted without further litigation, or any admission of liability by any party, and Banco Delta Asia was left free to resume its US dollar business.{{cite news |last1=Moura |first1=Nelson |title=Lifting of US sanctions on Delta Asia Bank the result of 15 years of unrelenting effort - Chairman |url=https://www.macaubusiness.com/lifting-of-us-sanctions-on-delta-asia-bank-the-result-of-15-years-of-unrelenting-effort-chairman/ |access-date=6 March 2024 |work=Macau Business |date=11 August 2020}}
{{Portal|Banks}}
References
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External links
- [http://www.delta-asia.com/ Official website]
{{Banks of Macau}}
Category:North Korea–United States relations