The Democratic People's Republic of Korea (DPRK) has begun transferring some of its funds from Macao to an unnamed bank in Southeast Asia, a major Japanese newspaper reported yesterday, potentially clearing the way for Pyongyang to fulfill its obligations for nuclear disarmament.

Pyongyang missed a Saturday deadline to shut down its main reactor, as agreed under a February deal with the US and four other countries, citing the failure to release its funds at Macao-based Banco Delta Asia (BDA).

The DPRK had made shutting down the reactor contingent on the release of the money, which was frozen after the US blacklisted BDA where the DPRK had 52 accounts allegedly linked to money laundering and counterfeiting.

The transfer is the first since the $25 million was freed for withdrawal last week, the Yomiuri newspaper reported.

A transfer of some of the DPRK funds from the Macao bank "to a Southeast Asian bank" has begun, but it would take more than a month for the transfer of all 52 accounts to be completed, the Yomiuri said, quoting unidentified officials related to DPRK banks named as BDA account holders.

The paper did not give the name of the bank or the country in Southeast Asia.

Source: China Daily/Agencies