Financial Crime World

Title: FATF Urges Global Action Against North Korea’s Financial Crimes, Nuclear Proliferation, and Human Rights Violations

North Korea’s Involvement in Financial Crimes and Nuclear Proliferation

  • The Democratic People’s Republic of Korea (DPRK or North Korea) involves itself in various illicit activities, including currency counterfeiting, terrorist financing, drug trafficking, money laundering, and deceptive financial practices.
  • Ongoing concerns include nuclear weapon development, arms trafficking, proliferation, and human rights violations.

The Financial Action Task Force’s Monitoring of North Korea

  • FATF closely monitors North Korea’s inadequate anti-money laundering and counter-terrorism financing (AML/CFT) regime since 2011.
  • FATF fears North Korea’s non-compliance poses risks to international financial system’s integrity and has urged immediate actions.
  • The DPRK is on FATF’s blacklist for non-compliance with AML/CFT standards.
  • FATF is deeply concerned about North Korea’s illegal activities related to WMDs proliferation and their financing.
  • All jurisdictions urged to exercise heightened vigilance when dealing with North Korean entities.

International Sanctions against North Korea

  • North Korea has been subject to UN sanctions since 2006 for nuclear and ballistic missile programs.
  • The US has imposed additional sanctions in response to cyber-attacks and other provocations.

Risks to Financial Institutions

  • Financial institutions must remain vigilant against risks of money laundering, terrorism financing, and WMD proliferation funding from North Korea.
  • The global review process for North Korea was temporarily halted due to the COVID-19 pandemic, but they remain designated as high-risk jurisdictions.

Rise in Cyber Thefts

  • A surge incyber thefts, totaling an estimated $1.7 billion in 2022, has heightened concerns as DPRK hackers target cryptocurrency and financial exchanges.
  • North Korea denies using cyber-attacks to generate funds for its nuclear and missile programs.

AML Compliance Solutions

  • Innovative solutions like Sanction Scanner can help businesses navigate complex regulatory landscapes and improve AML compliance efforts, protecting financial security and reducing associated risks, particularly in high-risk countries like North Korea.
  • Contact Sanction Scanner for a demo to learn more about the future of AML compliance solutions.

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