Financial Crime World

Title: FinCEN Designates Banco Delta Asia in Macao as a Primary Money Laundering Concern

September 20, 2005

The Financial Crimes Enforcement Network (FinCEN) of the US Department of the Treasury has designated Banco Delta Asia SARL (Banco Delta Asia) in Macao as a financial institution of primary money laundering concern. This designation is in response to reasonable grounds that exist for concluding the bank is being used to facilitate or promote money laundering and other financial crimes.

Background

Under the Bank Secrecy Act, the Secretary of the Treasury, through FinCEN, has the authority to find that a foreign financial institution is of primary money laundering concern, enabling the imposition of special measures to prevent or restrict the institution’s access to the US financial system.

Reasons for Designation

Banco Delta Asia, located in the Macao Special Administrative Region of China, has been identified as a significant money laundering risk due to its long-standing relationships with various North Korean government agencies and front companies, some of which have been involved in illicit activities, such as:

  1. Drug trafficking
  2. Counterfeiting of goods and currency

The bank has tailored its services to accommodate the demands of these entities, facilitating their cash deposits and withdrawals, precious metal sales, and the circulation of counterfeit U.S. dollars.

Evidence of Illegal Activities

  1. Arrest of a North Korean front company leader for attempting to deposit large sums of counterfeit currency into Banco Delta Asia
  2. Servicing of a multi-million dollar account on behalf of a North Korean front company suspected of distributing counterfeit currency and of being involved in international drug trafficking
  3. Processing of several multi-million dollar wire transfers connected with alleged criminal activity on behalf of another North Korean front company

Consequences of Designation

The designation of Banco Delta Asia as a primary money laundering concern is a necessary first step to prevent the bank’s involvement in the US financial system and bring criminal conduct occurring at or through the bank to the attention of the international financial community. The finding of primary money laundering concern will help limit the ability of the bank to be used for money laundering or other criminal purposes.

Further Information

FinCEN has not disclosed any further information regarding the measures that may be taken against Banco Delta Asia at this time. For more information, contact the Regulatory Policy and Programs Division of the Financial Crimes Enforcement Network at (800) 949-2732.