Korea Exchange Bank, controlled by US equity fund Lone Star, has terminated all transactions with Banco Delta Asia, accused by Washington of laundering money for North Korea.The bank is the first South Korean financial institution to join US-imposed sanctions against the Macau-based bank. "We terminated all transactions with the Banco Delta, including remittance and foreign exchange dealings, on Wednesday" a bank spokeswoman told AFP.
The decision was made to protect the interests of clients and the bank, she said. "This is a voluntary decision and there were absolutely no orders from the South Korean financial authorities or Lone Star," she said.
The US Treasury in September labelled Banco Delta Asia a "primary money laundering concern" and blacklisted eight North Korean companies in connection with the bank, saying they were involved in spreading weapons of mass destruction.