Title: FATF Urges Global Action to Disrupt DPRK’s Proliferation Financing Activities

Concerns over DPRK’s Proliferation Financing (PF) Activities

The Financial Action Task Force (FATF) has emphasized the importance of combating PF activities related to the Democratic People’s Republic of Korea (DPRK) and its nuclear and ballistic missile programs.

-growing concerns over DPRK and illicit financing activities -FATF calls for heightened vigilance and robust implementation of international standards -DPRK’s PF risks deep concern among FATF members

Reiterating the Importance of Countering PF Risks

The FATF has urged all jurisdictions to implement relevant FATF recommendations and UN Security Council (UNSC) resolutions more effectively.

-emphasizing the need for targeted financial sanctions against DPRK entities and individuals -reiterating the importance of combating PF in relation to the DPRK

Implementation of FATF Recommendations and UNSC Provisions

Implementation of FATF Recommendation 7 is essential for countering PF risks related to the DPRK.

-countries should swiftly enforce targeted financial sanctions -new listings of individuals and entities are to be considered -updated Recommendation 7 requiring targeted financial sanctions against DPRK government entities

Effective Communication and Cooperation

Effective communication and cooperation between relevant authorities play a crucial role in developing and implementing anti-PF policies.

-identifying, depriving, and preventing resources from reaching DPRK entities and individuals designated under UNSC resolutions -system for combating PF will help prevent DPRK’s illicit financial activities

Implications of UNSC Resolutions

UNSC resolutions targeting the DPRK have important implications for financial institutions.

-prohibition of opening new branches, subsidiaries, representative offices, and banking relationships -limiting the number of bank accounts for DPRK diplomatic missions, consular posts, and individual diplomats and consular officers -preventing evasion of sanctions and providing guidance to financial institutions

FATF’s Call for Global Action

The FATF has been advocating for countermeasures against the DPRK’s money laundering/terrorist financing (ML/TF) and proliferation financing (PF) threats since 2015.

-encouraging countries to strengthen their financial systems -international cooperation and sharing of relevant information to successfully disrupt DPRK’s WMD proliferation financing activities

For more information on FATF’s public statements, please visit the FATF website.