The bank has been accused of engaging in
money laundering and distribution of
superdollars for the government of North Korea. In September 2005, the impending imposition of sanctions by the
United States was announced, which triggered a massive
bank run. As a result, the Macau Government invoked a banking law to replace the bank's board by government appointees. As a result of this, several North Korean companies in Macau which had accounts with the bank, including
Zokwang Trading, had their accounts frozen. However, the United States agreed to resolve the issue of frozen Banco Delta Asia bank accounts, if North Korea disarms its
atomic arsenal. An audit by
Ernst & Young commissioned by the Macau government found no evidence that the bank had facilitated money laundering. On March 14, 2007, the
U.S. Treasury Department ordered all U.S. banks and companies to sever ties with Banco Delta Asia, following an 18-month investigation. U.S. Treasury Under-Secretary
Stuart Levey stated that the investigation confirmed the bank's "willingness to turn a blind eye to illicit activity, notably by its North Korean-related client". A mini-
bank run ensued, although only 10% of the bank's cash reserves were drawn out. In September 2007, the Monetary Authority of Macau ended its intervention and the bank was returned to management by owner Stanley Au. No criminal charges were ever filed in Macau. The bank remains blacklisted by the U.S. Treasury Department and is not authorized to conduct transactions in U.S. dollars. == Lifting of the sanctions ==