Treasury Warns of Illicit Finance Risks in North Korea Amid Evolving Threat Environment
Washington D.C. - The U.S. Department of the Treasury Publishes 2024 National Risk Assessments
The U.S. Department of the Treasury has published its 2024 National Risk Assessments on Money Laundering, Terrorist Financing, and Proliferation Financing. These reports highlight significant illicit finance threats, vulnerabilities, and risks facing the United States.
Illicit Finance Risks in the United States
The reports detail recent updates to the U.S. anti-money laundering/counter-financing of terrorism framework and explain changes to the illicit finance risk environment. Key developments include:
- Ongoing fentanyl crisis: The rapid spread of synthetic opioids continues to pose a significant threat.
- Foreign and domestic terrorist attacks: Financing for these activities remains a concern.
- Increased potency of ransomware attacks: These cyber threats are becoming more sophisticated.
- Digitization of payments and financial services: This trend increases the risk of illicit finance.
North Korea’s Illicit Finance Risks
The 2024 report also addresses how significant threats to global peace and security have shaped the illicit finance risk environment in the United States. Specifically, it notes that North Korea continues to present a heightened risk since the 2022 assessment.
“To support its unlawful activities, including its nuclear program and cyber attacks, North Korea has expanded efforts to illegally acquire U.S.-origin goods with military applications using various obfuscation techniques,” said an official from the Treasury Department.
Recommendations for Risk Mitigation
In the coming weeks, the Treasury will release the 2024 National Strategy for Combatting Terrorist and Other Illicit Finance. This strategic plan includes recommendations for addressing the highlighted issues and aims to support improvements to the anti-money laundering/counter-financing of terrorism regime.
Implications for Financial Institutions
The reports highlight the need for financial institutions to be vigilant in detecting and reporting suspicious transactions related to illicit finance. They also emphasize the importance of implementing effective anti-money laundering controls and conducting regular risk assessments to identify potential vulnerabilities.
In conclusion, the 2024 National Risk Assessments underscore the evolving nature of illicit finance threats and the need for continued vigilance and cooperation among governments, financial institutions, and other stakeholders to combat these risks.