US & China Further Crackdown on North Korean Counterfeiting

It looks like Kim Jong-il may have crossed China one too many times::

The Bank of China has frozen North Korea’s accounts at a branch in Macau due to Pyongyang’s counterfeiting and money laundering activities, it emerged Monday. It is the very BOC branch where South Korea’s National Intelligence Service transferred US$200 million to the North to guarantee the success of the first North-South summit between North Korean leader Kim Jong-Il and then-president Kim Dae-jung in 2000. U.S. pressure on the Macau-based bank Banco Delta Asia last year to freeze North Korean accounts reignited conflict between the U.S and the North.

Grand National Party lawmaker Park Jin said a former high-ranking U.S. official told him about the Chinese bank¿s decision when Park visited Washington last week. A South Korean government official later confirmed the account, saying Beijing could not turn down Washington¿s demand to clean up dubious accounts since it is well aware of the importance of improving financial transparency for the sake of trade. Analysts say that is one reason behind the recent rift between North Korea and its long-term ally over the North¿s missile tests.

US diplomats have been saying that China has been very helpful during the North Korean nuclear crisis and it appears behind the scenes they have if this latest crackdown is any indication.