US money laundering accusation ignites resentment in Macao
(Xinhua)
Updated: 2005-09-17 10:43

The United States government's money-laundering accusation on Banco Delta Asia, a Macao-based bank, triggered quick response here on Friday, as the bank formally denied the charge.

Wong Kai Fun, chief operating officer of Delta Asia Financial Group (BDA's parent company), told a press conference that the money laundering accusation is baseless.

"We are surprised at such allegation," Wong noted.

He said BDA has not been approached by any US agencies in anyway in relation to any of the dealings with banks and trading companies of the Democratic People's Republic of Korea (DPRK).

BDA has an over 30-year-long business relationship with a number of DPRK banks and trading companies, Wong said, adding that however, the bank has always strictly followed international regulations which are aimed at eliminating money laundering.

"We welcome the inspection from the Monetary Authority of Macao (MAM) and the US Department of Treasury," Wong said.

Stanley Au, chairman of the Delta Asia Financial Group (DAFG), told the press conference through telephone that the US allegation is "a big joke."

Au, on his business trip in Dubai, the United Arab Emirates, said he is on a relaxing mood that the US assertion will not harm badly his business.

"I am bathing the beautiful sunshine on the Indian Ocean beach, " he chuckled on the phone.

However, the financial tycoon has something to worry about, as many customers swarmed into the branches of BDA in Macao to squeeze out their cash on Friday afternoon.

The bank logged a total withdrawal of over 40 million patacas ( five million US dollars) on Friday alone.

Au said, in response, that DAFG has transferred enough cash from its Hong Kong subsidiaries to handle the BDA crisis.

He also pledged that the banking group has authorized lawyers in the US to take legal actions.

The BDA, established in Macao in 1935, currently operates eight branches and four offices in the special administrative region and DAFG, BDA's parent company, has subsidiaries and offices in Hong Kong, Tokyo and the Chinese city of Zhuhai.

Stuart Levey, the US Treasury Under Secretary for Terrorism and Financial Intelligence (TFI), Thursday said in his report published on the web-page of the Department of Treasury that BDA has aided DPRK in series of money-laundering cases.

The US official also denounced the Macao Special Administrative Region (MSAR) for being lax in curbing money laundering.

In response to the US assumption, the MSAR government issued a statement earlier on Friday expressing regrets over the comments of the US official.

The statement said the Macao government "is highly concerned" in regards of the accusation by Stuart Levey.

It said the MSAR government, under the leadership of the Central Government, has strictly observed the resolutions of the United Nations in relation to anti-terrorism and has dedicated efforts to deter and suppress illegal financial activities.

The Monetary Authority of Macao (MAM) of the MSAR exercises its supervision on all authorized financial institutions under a stringent regulatory framework, said the statement.

The MAM has already set up a special squad to launch probes into the bank, it added.

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