North Korea, The US and the Banco Delta
So it looks like the Democratic People’s Republic of Korea is not about to shut down its nuclear facilities. Why? Because the Banco Delta Asia in Macao will not release the $25 million deposited by North Korea into its bank. The reason? The money may have been gained illicitly.
On the surface this seems fair enough. But, there are three main problems with why 23 million should hold up the security of Northern Asia. First how does illicit gain matter in this case? Second, why is a Chinese bank now concerned with illicit money? And thirdly, can’t we find $25 million somewhere else and give it to them?
The Banco Delta is worried the money might have been gained illicitly. First how exactly is money not gained illicitly? It reminds me of Judgment Night when for a reason that escapes me (like the rest of the movie) Dennis Leary is giving some kid money. The kid complains that there is blood on that money. Leary responds, “you ever see money that didn’t?” But even if you accept that there are ways to get $25 million legally and ethically, when would North Korea do it? It’s a Stalinist regime driven on the cult of personality and squeezing the surplus labor from the citizens. Of course it’s ill gotten gain!
This leads us to the second question. Why does the Banco Delta care? China is not the most transparent in banking regulation. Only recently did they agree to follow the Basle II standards – and that only by the end of 2008. And it was neither the Banco Delta nor the Chinese National Government’s decision that it was ill gotten. It was the US Treasury’s. What is the Banco Delta doing listening to them?
Finally is the amount. To you and me $25 million is a lot of money but to the US Government its spare change. Just cover the 25 million and get back from the Banco Delta when PRC pressure makes them.
The United States has really lost all its soft power (the international relations jargon for “juice”), if the Bush Administration can let a major deal with an international pariah fall by the wayside because some small bank in Macau does want to release spare change.
On the surface this seems fair enough. But, there are three main problems with why 23 million should hold up the security of Northern Asia. First how does illicit gain matter in this case? Second, why is a Chinese bank now concerned with illicit money? And thirdly, can’t we find $25 million somewhere else and give it to them?
The Banco Delta is worried the money might have been gained illicitly. First how exactly is money not gained illicitly? It reminds me of Judgment Night when for a reason that escapes me (like the rest of the movie) Dennis Leary is giving some kid money. The kid complains that there is blood on that money. Leary responds, “you ever see money that didn’t?” But even if you accept that there are ways to get $25 million legally and ethically, when would North Korea do it? It’s a Stalinist regime driven on the cult of personality and squeezing the surplus labor from the citizens. Of course it’s ill gotten gain!
This leads us to the second question. Why does the Banco Delta care? China is not the most transparent in banking regulation. Only recently did they agree to follow the Basle II standards – and that only by the end of 2008. And it was neither the Banco Delta nor the Chinese National Government’s decision that it was ill gotten. It was the US Treasury’s. What is the Banco Delta doing listening to them?
Finally is the amount. To you and me $25 million is a lot of money but to the US Government its spare change. Just cover the 25 million and get back from the Banco Delta when PRC pressure makes them.
The United States has really lost all its soft power (the international relations jargon for “juice”), if the Bush Administration can let a major deal with an international pariah fall by the wayside because some small bank in Macau does want to release spare change.
posted by Eucleides of America at 11:14 AM
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