SEOUL, Jan. 24 (UPI) -- The United States urged South Korea Tuesday to join U.S.-led efforts to curb counterfeiting and other illicit activities by North Korea.
But South Korean officials refused to take sides, saying they would take no immediate steps to financially isolate their communist neighbor, reflecting a difference of opinion on how best to deal with the North's activities.
The U.S. call was made by Treasury investigators who traveled to Seoul Jan. 21-24 to discuss Washington's suspicions that North Korea had conducted illicit activities such as counterfeiting, money-laundering and drug-trafficking.
The U.S. administration, which blacklisted a Macau-based bank accused of circulating U.S. bills allegedly printed in North Korea, suspects Pyongyang's illicit activities have helped finance its nuclear weapons programs.
During their visit, the U.S. financial crime investigators led by Daniel Glaser, deputy assistant secretary for terrorist financing and financial crimes, urged South Korea to step up its efforts to counter North Korea's activities, according to the U.S. Embassy in Seoul.
The investigators said the activities were "facilitated by the North Korean government," indicating the United States would impose tough actions against the government-led illicit activities.
"While in Seoul, Glaser met with officials throughout the (South) Korean government to continue joint efforts to bolster defenses against illicit financial activity in the region," the Embassy said in a statement.
"Money-laundering, currency counterfeiting, and weapons of mass destruction constitute a grave threat to global security," said the statement, issued at the end of Glaser's four-day visit.
Glaser "stressed the need for rapid practical steps to ensure that financial institutions such as Banco Delta Asia -- which the United States has designated a 'primary money laundering concern' -- do not provide a facilitative environment for North Korean illicit activities and other criminal conduct," the Embassy statement said.
The U.S. investigators explained measures taken by Washington to crack down on illicit North Korean financial activities and urged Seoul to "take similar steps," the statement said.
"Glaser urged (South) Korea to further strengthen its regime in the area of weapons of mass destruction proliferation by focusing efforts to financially isolate WMD proliferators and their support network," the statement said.
The U.S. team visited Macao and Hong Kong before coming to Seoul. The team left for Tokyo on Tuesday on the final leg of its Asian trip.
However, South Korean Foreign Minister Ban Ki-moon said his country would take no immediate steps against the North, saying South Korea was already cooperating with a crackdown on illegal activities.
Ban declined to say whether the U.S. visit had convinced Seoul that North Korea was involved in such illegalities, saying only that South Korea "has serious concerns about such illegalities as money counterfeiting."
"We will not take additional measures (against North Korea)," Ban told a press briefing.
He stopped short of giving a clear position by Seoul on the debate over whether the North Korean regime produced fake U.S. bills and spread WMD.
Seoul has been cautiously avoiding directly engaging with the United States' claims against North Korea's alleged dollar counterfeiting and money-laundering.
The Seoul government is concerned the tough U.S. stance could trigger a furious response from North Korea, possibly upsetting the hard-won dialogue momentum to defuse North Korea's nuclear standoff.
South Korean officials, who are making diplomatic efforts to resume the six-party talks next month, have asked the United States to ease its stance against North Korea.
North Korea has said it will not join the six-nation talks unless the United States lifts its financial sanctions, describing them as a scheme to topple the communist regime.
The U.S. Treasury Department last September suspended transactions between its financial institutions and Macau-based Banco Delta Asia, saying it was involved in North Korea's money laundering and fake currency distribution.
The bank has cut off transactions with North Korea, which is believed to have choked Pyongyang's cash flow and had a devastating effect on North Korea's economy, which relies on illicit activities for at least 40 percent of its gross domestic product.
