The Asian Wall Street Journal (ASWJ) reported Thursday that U.S. judicial authorities were investigating the Bank of China -- China's largest Bank -- and Banco Delta Asia SARL and Seng Heng Bank, both based in Macau. The banks are suspected of laundering money from North Korea’s counterfeiting and drug and weapons deals.

The paper said the U.S. started to suspect the banks of illegal dealings with the North after it moved to shut down North Korean corporations it says dealt in drugs and exported counterfeit bills and cigarettes. The banks could face tough sanctions if the suspicions are confirmed.

The probe concludes a three-year investigation by U.S. judicial authorities with other Asian nations of North Korea's distribution network for counterfeit bills and illicit arms deals. It comes ahead of the restart of six-party talks on North Korea’s nuclear programs next week and the Bank of China's listing on the New York Stock Exchange next year.

The AWSJ said the U.S. seized US$5 million in counterfeit US$100 bills, known as the "super note", at home and in Taiwan in a massive joint operation between the secret service, Immigration and Customs Enforcement (ICE) and others. U.S. authorities believe most of the bills were made in North Korea.

Washington is reportedly focusing its inquiries on Macau's Zokwang Trading Co., which it says sells gold and other goods to provide a financing window for North Korea and has been involved in the acquisition of parts for Pyongyang's nuclear program.

The two Macau banks, which investigators have linked to deals with Zokwang Trading, are the property of major Hong Kong and Macau moguls. Banco Delta Asia SARL, which is owned by Macau financier and lawmaker Stanley Au, was placed on the U.S. Treasury Department's blacklist when it was implicated in money laundering after officials from Zokwang Trading were discovered with counterfeit dollars in 1994.

Seng Heng Bank owner Stanley Ho, Macau's biggest casino magnate, is said to be close to the family of Kim Jong-il and opened a casino in Pyongyang in 1999.

(englishnews@chosun.com )