Financial Crime World

Title: FATF Urges Increased Vigilance Against North Korea’s Money Laundering Activities

The Democratic People’s Republic of Korea (DPRK or North Korea) has been the subject of international concern due to various illegal activities including:

  • Currency counterfeiting
  • Terrorist financing
  • Drug trafficking
  • Money laundering
  • Nuclear weapons development
  • Arms trafficking and proliferation
  • Human rights violations

North Korea’s AML/CFT Inadequacies

The Financial Action Task Force (FATF) identifies North Korea’s inability to address substantial weaknesses in its anti-money laundering and counter-terrorism financing (AML/CFT) regime as a major concern. The FATF urges the DPRK to resolve these inadequacies:

  • Safeguard the international financial system’s integrity
  • Prevent the funding of WMDs proliferation

The FATF strongly recommends all jurisdictions to pay close attention to:

  • Commercial contacts and transactions with the DPRK
  • DPRK corporations, financial institutions, and representatives

North Korea’s Designation as a High-Risk Jurisdiction

  • Since February 2011, North Korea has been on the FATF’s blacklist
  • The FATF’s review process for Iran and North Korea was halted in February 2020 due to the COVID-19 pandemic
  • Both countries remain designated as high-risk jurisdictions

Response to North Korea’s Cyber Thefts

  • In 2017, The Financial Crimes Enforcement Network (FinCEN) issued a warning about North Korea’s tactics
  • Estimated $1.7 billion cyber thefts in 2022

AML Regulations and Sanctions against North Korea

  • North Korea has been subject to various sanctions since 2006 due to its nuclear and ballistic missile programs
  • Restrictions on:
    • Weaponry exports and imports
    • Conventional weapons and weapons of mass destruction
    • Sensitive commodities and technology
    • Technical support

The Role of Sanction Scanner in Combating Financial Crimes

  • Compliance with AML obligations
  • Navigate complex AML regulations
  • Improve AML compliance efforts
  • Protect financial security
  • Reduce risks of transactions with high-risk nations like North Korea

Contact us for a demo of Sanction Scanner’s cutting-edge technology to effectively combat money laundering, terrorist financing, and WMD proliferation funding associated with the DPRK.