TAIWAN MONEY BROKERS USE BANCO DELTA ASIA

C O N F I D E N T I A L TAIPEI 003867

SIPDIS

DEPT PASS TO AIT/W AND USTR
DEPT FOR EAP/TC, EAP/EP, EB/IFD/OIA AND NKWG
TREASURY FOR OASIA MOGHTADER AND OCC AMCMAHON
TREASURY ALSO PASS TO FEDERAL RESERVE BOARD OF GOVERNORS,
SAN FRANCISCO FRB AND NEW YORK FRB

E.O. 12958: DECL: 09/18/2020
TAGS: ECON PINR KCRM KTFN TW HK
SUBJECT: TAIWAN MONEY BROKERS USE BANCO DELTA ASIA
SUBSIDIARY

REF: A. TAIPEI 3288

B. TAIPEI 3766

Classified By: AIT ACTING DIRECTOR DAVID KEEGAN, REASON 1.5 B/D

(C) Hong Kong professional money laundering investigator
Peter Gallo (refs) sent an e-mail letter on September 18 to
AIT/Econ reporting that Delta Asia Credit Limited (the Hong
Kong subsidiary of Banco Delta Asia, which the U.S. Treasury
recently publicly designated as a "primary money laundering
concern") was one of the two Hong Kong companies that had
been clearing U.S. dollar checks from unlicensed money
brokers in Taiwan. The other company was Gallo's client
bank, a Hong Kong customer of Wells Fargo Bank in San
Francisco. Gallo's e-mail warned that the concerns laid out
in his August 30 letter (ref b) have become more urgent since
there is now only one company able to clear these U.S. dollar
checks from Taiwan (his client ceased last month),and it is
now under threat of imminent closure. Gallo believes this
will leave the money brokering business in Taiwan in the
hands of organized crime.
KEEGAN