Financial Crime World

Korea, Democratic People’s Republic of: New Banking Regulations Aim to Prevent Fraud

Pyongyang, January 8, 2024 - The government of Korea, Democratic People’s Republic of has announced amendments to its sanctions regime aimed at strengthening financial regulations and preventing fraud.

Background

The move comes following an update to the United Nations Security Council’s Democratic People’s Republic of Korea Sanctions List on January 5, 2024. The updated list includes two entities subject to asset freeze: the General Bureau of Atomic Energy (GBAE) and the Academy of National Defense Science.

Entities Subject to Asset Freeze

Both organizations are involved in the country’s nuclear and ballistic missile programs, and have been listed as sanctioned parties since 2009 and 2016 respectively. The following entities are subject to asset freeze:

  • General Bureau of Atomic Energy (GBAE)
  • Academy of National Defense Science

New Regulations

Under the new regulations, financial institutions and individuals are required to:

  • Check whether they maintain accounts or hold funds for, or provide services to, designated individuals
  • Freeze such accounts if applicable
  • Report their findings to the Financial Intelligence Unit (FIU)

Compliance Requirements

The government has emphasized that failure to comply with financial sanctions legislation is a criminal offense. Attempting to circumvent the regulations will have severe consequences.

Additional Resources

For more information on the UN measures in respect of Democratic People’s Republic of Korea, please visit the relevant UN Sanctions Committee webpage.

The Isle of Man Government website also provides further details on the sanctions regime related to Democratic People’s Republic of Korea and links to other financial sanctions regimes.

Impact

The new regulations aim to prevent fraud and strengthen the country’s financial sector. The impact is expected to be significant, affecting the way businesses operate in Korea, Democratic People’s Republic of.

Note: The Consolidated List, updated by the Foreign, Commonwealth and Development Office, provides details of those designated under sanctions legislation.