North Korea used a bank in Bulgaria, related to the political leadership of the country, to carry out money laundering schemes, US finance ministry said.

US deputy secretary of treasury Robert Kimmitt warned Bulgarian Finance Minister Plamen Oresharki of the intentions of North Korea in February 2007, Congressional Quarterly (CQ) magazine reported.

The bank in question was SIBank, CQ said.

SIBank said it had no relations to the scheme and Kimmitt was spreading groundless rumours.

CQ quoted bank officials as saying that Oresharski warned them about the information.

According to CQ bank representatives had connections to Sofia mayor and informal leader of Citizens for the European Development of Bulgaria (CEDB) Boiko Borissov.

Recently the magazine published another report targeting Borissov. It accused him of connections to criminal organisations.