Compliance Training for Financial Institutions in Korea, Democratic People’s Republic of

FATF Reiterates Call for Countermeasures Against High-Risk Jurisdictions

The Financial Action Task Force (FATF) has reiterated its call on all countries to apply countermeasures against the Democratic People’s Republic of Korea (DPRK), citing significant strategic deficiencies in its anti-money laundering and combating the financing of terrorism (AML/CFT) regime. DPRK has been identified as a high-risk jurisdiction, highlighting the country’s failure to address serious threats posed by its illicit activities related to the proliferation of weapons of mass destruction.

FATF Recommendations

The FATF urges countries to apply enhanced due diligence measures proportionate to the risks arising from DPRK and recommends that financial institutions increase monitoring of business relationships to determine whether transactions appear unusual or suspicious. The organization also emphasizes the importance of countries applying appropriate countermeasures independently of any call by the FATF, with such measures being effective and proportionate to the risks.

Call for Action Against Myanmar

In addition, the FATF has called on its members and other jurisdictions to apply countermeasures against Myanmar, citing continued lack of progress in addressing strategic deficiencies. The organization urges Myanmar to work towards fully addressing its AML/CFT deficiencies, including demonstrating an improved understanding of money laundering risks and ensuring effective implementation of targeted financial sanctions.

Compliance Obligations for Financial Institutions in Korea

Financial institutions in Korea are advised to take note of these developments and to ensure compliance with relevant regulations and guidelines. The FATF’s recommendations serve as a reminder of the critical importance of robust AML/CFT systems in preventing financial crime and protecting the integrity of the global financial system.

Key Takeaways

• DPRK has been identified as a high-risk jurisdiction due to its failure to address threats posed by illicit activities related to weapons of mass destruction.
• Financial institutions are advised to increase monitoring of business relationships and apply enhanced due diligence measures proportionate to the risks arising from DPRK.
• Myanmar is also subject to countermeasures due to lack of progress in addressing strategic deficiencies in its AML/CFT regime.
• Compliance with relevant regulations and guidelines is essential for financial institutions in Korea.