Financial Crime World

Financial Crime Trends and Statistics in Democratic People’s Republic of Korea

Global Community on High Alert for Proliferation Financing Risks

The Financial Action Task Force (FATF) has sounded the alarm over the rising threat of proliferation financing emanating from the Democratic People’s Republic of Korea (DPRK), emphasizing the need for robust implementation of anti-money laundering and combating the financing of terrorism (AML/CFT) standards to disrupt the country’s illicit financial activities.

Recent Developments

  • The United Nations Security Council has passed several resolutions aimed at imposing strict financial restrictions on DPRK, further highlighting the FATF’s call for international cooperation in addressing the proliferation financing threat.
  • The global community is on high alert as DPRK continues to engage in illicit activities related to the proliferation of weapons of mass destruction (WMD) and its financing.

Addressing the Threat

To address this threat, the FATF has emphasized the importance of effective implementation of targeted financial sanctions against individuals and entities associated with WMD programs. This includes extending sanctions to DPRK Government entities involved in nuclear or ballistic missile programs, as required under UNSC Resolution 2270. The FATF has also updated Recommendation 7 to reflect these changing risks.

International Cooperation

Countries are urged to cooperate and coordinate between relevant authorities on the development and implementation of policies and activities to combat proliferation financing. This includes sharing relevant information (Recommendation 2) and implementing mechanisms to prevent the evasion of sanctions.

Recent UNSC Resolutions

  • The UNSC has recently passed several resolutions concerning DPRK, including measures to prohibit the opening and operation of new branches, subsidiaries, and representative offices of DPRK banks in their territories.
  • States are also required to close existing branches, terminate correspondent banking relationships with DPRK banks, and limit the number of bank accounts held by DPRK diplomatic missions and consular posts.

Call for Action

The FATF has called upon its members and urged all jurisdictions to apply effective countermeasures to protect their financial systems from the money laundering/terrorist financing (ML/TF) and proliferation financing threat emanating from DPRK. The global community must work together to disrupt DPRK’s illicit financial activities and prevent the funding of WMD programs.

  • DPRK has been identified as a high-risk jurisdiction for money laundering and terrorist financing.
  • The country’s illicit activities related to WMD proliferation have led to increased sanctions and restrictions.
  • The FATF has called upon its members and urged all jurisdictions to apply effective countermeasures to protect their financial systems from the ML/TF threat emanating from DPRK.
  • UNSC Resolution 2270 has imposed strict financial restrictions on DPRK, including prohibiting the opening and operation of new branches, subsidiaries, and representative offices of DPRK banks in their territories.

These statistics and trends highlight the growing concern over proliferation financing risks emanating from Democratic People’s Republic of Korea. The international community must work together to disrupt DPRK’s illicit financial activities and prevent the funding of WMD programs.