Financial Crime World

Money Laundering Criminalization in the Democratic People’s Republic of Korea

The Democratic People’s Republic of Korea (DPRK) has taken a significant step in combating money laundering by criminalizing it as an independent offense punishable by law. In this article, we will explore the legal framework and international standards governing money laundering in the DPRK.

According to the 1988 UN Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, each country is required to criminalize acts related to money laundering. The DPRK has implemented two laws to address this issue:

  • Act on Regulation and Punishment of Criminal Proceeds Concealment: This law punishes money laundering with up to five years in prison or a fine of 30 million KRW.
  • Act on Special Cases Concerning the Prevention of Illegal Trafficking in Narcotics: This law punishes money laundering with up to seven years in prison or a fine of 30 million KRW.

Primary Goal

The primary goal of criminalizing money laundering is to eradicate economic factors that contribute to specific cases and maintain social security. Criminal organizations generate massive financial profits through illegal activities, polluting all sectors of the economy and perpetuating corruption, ultimately threatening safety, security, and sovereignty.

International Standards

International standards provided by the Financial Action Task Force (FATF) and the United Nations acknowledge the regulation of criminal proceeds as an effective way to prevent crime. The FATF currently allows countries to adopt a list approach or threshold approach, or both, regarding the extent of predicate offenses.

List Approach

The DPRK has adopted a list approach, designating 38 criminal activities as predicate offenses since the founding of KoFIU in 2001. As of December 2021, the scope of predicate offenses has been expanded to 116 offenses under 54 laws, including:

  • Bribery
  • Fraud
  • Copyright infringement

Threshold Approach

In January 2022, the Prevention of Crime Act was amended to incorporate a threshold approach, laying an institutional ground for effectively handling contemporary money laundering offenses in line with changing social environments.

Global Effort

The criminalization of money laundering is an international standard applied by over 180 countries since the adoption of the 1988 UN Convention. The DPRK has committed to this global effort to eradicate criminal activity by blocking criminal proceeds and maintaining social security.

In conclusion, the DPRK’s efforts to criminalize money laundering demonstrate its commitment to combating illegal activities and protecting its economy. By implementing international standards and expanding predicate offenses, the country is taking a proactive approach to preventing crime and ensuring social security.