Supernotes Update: N. Korean Front Companies Flee Macau

The Treasury Department’s enforcement actions against Banco Delta Asia, North Korea’s money-launderer of choice, has caused quite a disruption:

North Korea has moved what to all intents and purposes was its representative office in Macau, the Zokwang Trading Co. The office sign is gone, and North Korean staff of Zokwang Trading across the street from the Macau Department of Transport have disappeared.

Most appear to have headed for mainland China, where the next round of sanctions could have some delicious collateral consequences on the solvency of the Chinese banking system.

Zokwang Trading played the role of both consular office and intelligence service. Some staff members are now commuting between Zhuhai and Macau. The U.S. accuses the company of being in charge of money laundering and the distribution of counterfeit dollars though transactions with the Banco Delta Asia, as well as receiving parts needed to develop the country’s nuclear program.

And Chung Dong-Young thinks shutting this down was a bad thing?