Financial Crime World

FINTRAC Warns of North Korean Financial Activity in Canadian Transactions

Ottawa, ON - FINTRAC Issues Operational Alert

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has issued an Operational Alert to remind reporting entities of their obligations to submit suspicious transaction reports related to potential North Korean financial activity.

Indicators of Suspicious Activity

FINTRAC has identified several indicators of suspicious activity related to North Korean financial activity, including:

  • Transactions involving EFTs: Transactions sent or received from Canadian businesses operating in unrelated sectors.
  • One-directional transactions: One-way transactions where a company only sends or receives EFTs but not both.
  • Consistent recipient companies: Recipient companies remaining the same while foreign ordering companies change over time.

Jurisdictions of Concern

FINTRAC has identified three jurisdictions associated with North Korean financial activity:

  • Liaoning Province, China: Shares a land border with North Korea and has been reported to engage in financial activity with North Korean companies.
  • Jilin Province, China: Also shares a land border with North Korea and has been associated with companies employing North Korean guest workers.
  • Hong Kong: Linked to North Korean financial activity due to its role as a major center of global finance.

Reporting Obligations

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

Contact Information

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

Appendix I: Major Cities - Liaoning Province, China

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