"We have good reason to believe that Banco Delta Asia has been involved in illicit activity on behalf of North Korea," Cunningham said after a speech to the American Chamber of Commerce in Hong Kong.

He then called for quick action on a new anti-money laundering law that has been in the works for a few years.

"We would like to see the legislation that's been drafted brought to the Macau legislature and adopted," he said. "That will strengthen Macau's ability to monitor and regulate its banks, casinos and financing system."

ADVERTISEMENT

Struggling to contain the banking crisis created by the Treasury announcement, Macau officials have repeatedly expressed unhappiness with the US government's public methods - the original announcement called Macau "a region that needs significant improvement in its money-laundering controls."

The Macau government said Friday it "regrets the comments of the US government officials on the anti-money laundering measures taken by the MSAR government."

Chief Executive Edmund Ho said the next day that the US has yet to back up the Banco Delta Asia allegations.

Cunningham, however, said Tuesday he discussed the matter with Ho last week and the two governments will continue to cooperate on money laundering.

"We have for some time been cooperating with Macau on strengthening its own capabilities, its monetary authority's capabilities, to monitor the banking system," he said. "And we think that's been important and that it will continue."

Banco Delta Asia, meanwhile, said in a statement Tuesday the Treasury charges are "totally unfounded."

The bank said it has, since the 1970s, performed due diligence on its North Korean banking and trading customers and believes other banks transferring money to North Korean clients via Banco Delta Asia also performed due diligence.

The bank acknowledged the Treasury's charge that it has helped North Korean customers sell gold, but said the gold was "mined and produced in the country, with place of origin being identified in accordance with BDA's own internal compliance procedures."