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Seoul is urgently studying its options in case Washington designates North Korea a ¡°primary money-laundering concern¡± under its Patriot Act, a move that would create enormous difficulties for anyone doing business with the country and could deal a blow to growing inter-Korean trade.
Government sources on Tuesday said Seoul is focused on the possibility that following the designation in December, 2002 of the Ukraine and the small Pacific island of Nauru as areas of "primary money-laundering concern," North Korea could be next in line for such a designation. (The designation of the Ukrainian government was later revoked in April of 2003).
A source said there was a real threat that North Korea could find itself branded since it continues to delay implementation of its commitment to dismantle its nuclear program under an agreement reached in six-party talks in Beijing last September. Seoul fears growing calls for fundamental change in North Korea could lead to the designation, which would effectively block all the country¡¯s financial transactions with the outside world, according to the source.
Under the Patriot Act enacted after the Sept. 11, 2001 terrorist attacks in the U.S., entire countries as well as financial institutions can be designated money-laundering concerns. The U.S. already nailed down the Macau-based Banco Delta Asia as a primary money-laundering concern for North Korea in September. According to the latest Newsweek magazine, 40 percent of the bank's accounts had been withdrawn just one week after the announcement.
By the same token, the designation of North Korea as a whole would likely paralyze its transactions with any international financial institutions, which must maintain a place of business in the U.S. if they are to conduct dollar transactions. ¡°It would mean North Korea is in effect kicked out of the international financial world, where the U.S. exercises the greatest influence,¡± a government official said.
(englishnews@chosun.com )
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