Macau is urged to fight money laundering

US consul-general James Cunningham urged Macau yesterday to strengthen its monetary system in light of US allegations that a bank there was laundering money for North Korea.

Mr Cunningham said he hoped Macau's legislature would pass anti-money laundering legislation which is being drafted and is expected to be debated by lawmakers by the end of the year.

'That will further strengthen Macau's ability to monitor and regulate its banks, casinos and financing system,' he said.

The US Treasury Department last week placed Banco Delta Asia on a watch list for money laundering, sparking a two-day run on the bank. Mr Cunningham said he had met Macau Chief Executive Edmund Ho Hau-wah last week to discuss the matter.

'We have good reason to believe that the Bank of Delta Asia has been involved in a list of activities on behalf of North Korea,' he said.

Delta Asia chairman Stanley Au Chong-kit dismissed the comments as those expected from a diplomat. 'Of course the consul is on the side of the US government,' he said last night. 'He's not going to accuse his own government of lying.'