Practical problems have arisen as to how to transfer the assets, which have been frozen in a Macau bank since 2005 due to US sanctions, said China's top envoy to six-nation nuclear talks after they broke down over the money issue.

"Although the Bank of China will be able to undertake this transaction, we need to consult with them," Wu Dawei told a briefing in Beijing.

"The bank has its own concerns, and the government needs to help them in addressing these concerns."

The United States on Monday announced that the money, frozen due to US accusations of money laundering and counterfeiting, could now be released, raising hopes of progress at nuclear disarmament talks in Beijing this week.

But those negotiations ended abruptly Thursday when North Korea's chief envoy flew home because the cash had still not been transferred to a North Korean account at the Bank of China in Beijing.

The Bank of China -- one of the nation's four state-owned commercial lenders -- said earlier on Thursday that it had not yet been asked to transfer the money.

"Up to now we have not been asked to do this business," Li Lihui, the vice chairman and president of the Bank of China, told reporters in Hong Kong.

Wu told the briefing that apart from state-controlled bank's own concerns, procedural issues made the transfer difficult.

"If you want to remit money more than 10,000 dollars, you need to go through a settlement center in the United States. Even for this amount to through all the relevant procedures will take at least one week," he said.

He said various practical solutions had been discussed, including writing a check to North Korea, or transmitting the money in cash.

Wu also said he had suggested that an unidentified South Korean foreign exchange bank with a branch in North Korea could handle the transaction, but did not indicate how South Korea had responded or give any other details.

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