Posted on 09/21/2006 8:09:23 AM PDT by AmericanInTokyo
"S. Korean Dollar Payments to Kaesong (North Korea) Illegal"
When a South Korean company pays its North Korean contractor, it deposits money in Korean won in the main branch of Woori Bank in Seoul. With the guarantee, the Kaesong Branch of the bank gives the contractor the money in U.S. dollars. The Finance Ministry took issue with the system on April 17, saying it was an expedient violating regulations on foreign currency transactions, and called for new exceptions to make the transaction legal.
In the documents, the ministry points out that anonymous dollar transactions could lead to trouble in tax collection, and be used as means for money laundering, customs evasion and payments for smuggling. They could also distort the international account balance, since they are not included in foreign exchange statistics, the ministry said. “To speak extremely, with the transaction method, the North can make a camouflage purchase of a South Korean company and use it as a channel for surreptitious remittances of illegal money from foreign countries,” Lee said.
(englishnews@chosun.com )
Ping
Broadway Branch-New York Branch Broadway Branch Address 1250 Broadway New York, NY 10001 212) 244-1500 / FAX : 212) 695-5593 Flushing Branch-New York Branch Flushing Branch Address 136-88 39th Avenue Flushing, NY 11354 718) 886-1988 / FAX : 718) 461-4323 Woodside Branch-New York Branch Woodside Branch Address 43-22 50th Street Woodside, NY 11377 718) 429-1900 / FAX : 718) 429-2087 Bayside Branch-New York Branch Bayside Branch Address 215-10 Northern Blvd. Bayside, NY 11361 718) 224-3800 / FAX : 718) 224-3828 Fort Lee Branch-New Jersey Branch Fort Lee Branch Address 2053 Lemoine Avenue Fort Lee, NJ 07024 201) 363-9300 / FAX : 201) 363-0900 Main Street Branch-New Jersey Branch Main Street Branch Address 183 Main Street Fort Lee, NJ 07024 201) 947-6666 / FAX : 201) 947-3226 Ridgefield Branch-New Jersey Branch Ridgefield Branch Address 321 Broad Ave. #104 Ridgefield, NJ 07657 201) 941-9999 / FAX : 201) 941-4419 Palisades Park Branch-New Jersey Branch Palisades Park Branch Address 225 Broad Ave. Palisades Park, NJ 07650 201) 346-0055 / FAX : 201) 346-0075 Closter Branch-New Jersey Branch Closter Branch Address 234 Closter Dock Road Closter, NJ 07624 201) 784-7012 / FAX : 201) 784-7013 Cheltenham Branch-Pennsylvania Branch Cheltenham Branch Address 7400 Front Street Cheltenham, PA 19012 215) 782-2015 / FAX : 215) 782-8907 Elkins Park Branch-Pennsylvania Branch Elkins Park Branch Address 7300 Old York Rd Elkins Park, PA 19027 215) 782-1100 / FAX : 215) 782-1500 Annandale Branch-Virginia Branch Annandale Branch Address Seoul Plaza 4231 Markham St Annandale, VA 22003 703) 256-7633 / FAX : 703) 256-7511 Wheaton Branch-Maryland Branch Wheaton Branch Address 11925 Georgia Ave. Wheaton, MD 20902 (Wheaton Park Shopping Center) 301) 933-1175 / FAX : 301) 933-1560 Wilshire Branch-California Branch Wilshire Branch Address 3540 Wilshire Blvd. Los Angeles, CA 90010 213) 382-8700 / FAX : 213) 382-8787 CA LPO(Loan Production Office)-California Branch CA LPO (Loan Production Office) Address 3530 Wilshire Blvd.Suite 1180, Los Angeles, CA 90010 213) 427-3000 / FAX : 213) 427-9112
I wonder if it is State Department, Treasury, DHS, or whomever, who would get involved in this??
Department of the Treasury
Financial Crimes Enforcement Network
December 13, 2005
Advisory
GUIDANCE TO FINANCIAL INSTITUTIONS ON THE PROVISION OF
BANKING SERVICES TO NORTH KOREAN GOVERNMENT AGENCIES AND
ASSOCIATED FRONT COMPANIES ENGAGED IN ILLICIT ACTIVITIES.
This advisory warns U.S. financial institutions that the U.S. Department of the Treasury has concerns that the Democratic People's Republic of Korea ("North Korea"), acting through government agencies and associated front companies, is engaged in illicit activities and may be seeking banking services elsewhere following the finding of Banco Delta Asia SARL to be a financial institution of "primary money laundering concern" pursuant to Section 311 of the USA PATRIOT Act. Accordingly, U.S. financial institutions should take reasonable steps to guard against the abuse of their financial services by North Korea, which may be seeking to establish new or exploit existing account relationships for the purpose of conducting illicit activities. This advisory is consistent with the U.S. Department of the Treasury's efforts to ensure that U.S. financial institutions are not used as a conduit for the laundering of proceeds from such illicit activities as currency counterfeiting, narcotics trafficking, counterfeit cigarette smuggling, and the financing of and involvement in weapons of mass destruction and missile proliferation. We encourage financial institutions worldwide to take similar precautions.
The Department of the Treasury is actively monitoring this situation and will take any further action as appropriate. We will provide updated information to the financial industry as warranted. Financial institutions with questions about this advisory may contact the Financial Crimes Enforcement Network's regulatory helpline at 1-800-949-2732.
Background
Section 311 of the USA PATRIOT Act added Section 5318A to the Bank Secrecy Act, authorizing the Secretary of the Treasury to find a foreign financial institution, jurisdiction, class of transactions or type of account to be of "primary money laundering concern." Upon such finding and following a rulemaking process, the Secretary is authorized to take additional steps to further protect the U.S. financial system by requiring U.S. financial institutions to take certain "special measures" with respect to the specified entity. Such "special measures" can include requiring U.S. financial institutions to terminate all correspondent account relationships with the specified entity. In addition to protecting the U.S. financial system, Section 311 findings serve as a notice to the global financial community that a particular institution presents a serious money laundering and illicit financing risk.
As published in the Federal Register on September 20, 2005, we found Banco Delta Asia SARL ("Banco Delta Asia"), which is headquartered in the Macau Special Administrative Region of China, to be a financial institution of "primary money laundering concern." As stated in this Federal Register notice, Banco Delta Asia has provided financial services for over 20 years to North Korean government agencies and associated front companies that are known to have engaged in illicit activities. North Korean entities are known to have engaged in currency counterfeiting, narcotics trafficking, the production and dissemination of counterfeit cigarettes, and the laundering of related proceeds, as well as weapons of mass destruction and missile proliferation. Investigations have also revealed that, among other things, Banco Delta Asia has serviced a multi-million dollar account on behalf of a known international drug trafficker. This finding and the accompanying proposal to prohibit U.S. financial institutions from maintaining correspondent accounts for or on behalf of Banco Delta Asia are aimed at protecting the U.S. financial system from ongoing illicit activity facilitated by Banco Delta Asia.
Got it. Treasury Department is the one who should/would go after this one.
This money could be diverted to nuclear weapons and missile technology development, in direct threat to our national security. And the banks who support them have US subsidiaries right under our noses. Hope Treasury Dept. reads this thread, or that some Freepers would forward to them.
Somehow, these guys must believe that they can get away with this kind of behavior.
Maybe Rice's approach embolden Roh and his crews. I am beginning to be annoyed by Rice's approach. To put it another way, Bush should cut down on Rice's advice.
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