Twenty Million of North Korean Funds on the Move

Via alertnet.org -

SEOUL, June 14 (Reuters) - Most of the North Korean funds frozen in a Macau bank have been transferred, South Korean and Japanese news agencies said on Thursday, raising the prospect of an end to the deadlock stalling Pyongyang's nuclear disarmament.

Of $25 million in North Korean funds at Banco Delta Asia, $20 million has been transferred, South Korea's Yonhap reported, citing the Macau government.

North Korea has refused to honour a February agreement to begin shutting its Yongbyon nuclear reactor and source of material for atomic weapons until its funds at Banco Delta Asia are released through normal banking channels.

The funds were blocked after the United States blacklisted Banco Delta Asia, accusing it of laundering illicit funds for Pyongyang.

Japan's Kyodo said the funds were expected to be transferred through the New York branch of the Federal Reserve and Russia's central bank to a Russian bank where North Korea holds accounts.

Russia said on Wednesday it would allow one of its banks to transfer the $25 million stuck in Banco Delta Asia, provided Washington gave written guarantees that it would not fall foul of U.S. sanctions against North Korea.