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FINTRAC Issues Operational Alert on North Korean Financial Activity

Ottawa, ON - The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has issued an operational alert to raise awareness about potential North Korean financial activity in the Canadian financial system.

Investigation Findings

According to FINTRAC’s investigation, there is a pattern of sending or receiving international electronic funds transfers (EFTs) to or from Canadian businesses that operate in unrelated sectors and industries. The alert highlights several jurisdictions that may be associated with North Korean use of the international financial system for laundering the proceeds of sanctions evasion.

Jurisdictions of Interest

FINTRAC has identified the following jurisdictions as potential areas of concern:

  • Liaoning Province, China: Transactions to or from this province, particularly if they display other indicators such as possible use of shell companies, may warrant additional scrutiny.
  • Jilin Province, China: This province has been associated with North Korean guest workers in the food processing and manufacturing sectors, with Changchun being a significant city for EFT reporting.
  • Hong Kong: As a major centre of global finance, Hong Kong’s role makes it an important location to monitor, particularly if transactions display other indicators of potential money laundering or terrorist financing activities.

Reporting Obligations

FINTRAC is reminding all reporting entities subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and its associated Regulations of their obligations to submit a suspicious transaction report or attempted suspicious transaction report if there are reasonable grounds to suspect that a transaction or attempted transaction is related to a terrorist activity financing or money laundering offence.

Contact Information

Reporting entities with concerns about potential North Korean financial activity can contact FINTRAC at:

Appendix I - Major Cities

Liaoning Province:

  • Shenyang
  • Dalian
  • Anshan
  • Liaoyang
  • Fushun
  • Dandong
  • Jinzhou
  • Yingkou

Jilin Province:

  • Changchun
  • Jilin City
  • Siping
  • Liaoyuan
  • Tonghua
  • Songyuan
  • Baicheng
  • Yanbian