North Korea Cracks Down on Money Laundering with Stricter Anti-Money Laundering Regulations
Pyongyang, Democratic People’s Republic of Korea - The government of North Korea has introduced a set of stricter anti-money laundering (AML) regulations aimed at preventing the financing of terrorism and other illegal activities.
Strengthened Customer Due Diligence Measures
The new regulations require financial institutions to conduct thorough customer due diligence measures, including:
- Obtaining identification data from customers
- Verifying their identity through requests to other institutions
- Monitoring transactions for suspicious activity
Financial institutions are also required to report any large or unusual transactions to the Financial Intelligence Unit (FIU).
Enhanced Customer Information and Verification
Under the new rules, financial institutions must obtain information on customers and beneficial owners, including:
- Details of their business activities
- Address
- Control structure
This information must be verified through requests to other institutions.
Ongoing Due Diligence and Reporting Requirements
Financial institutions are required to conduct ongoing due diligence throughout the course of a business relationship to ensure that transactions are consistent with their knowledge of the customer. They must also report any attempts to circumvent AML/CFT measures and cooperate with law enforcement agencies in investigations.
Record Keeping and Retention
The regulations require financial institutions to maintain records of customer identification data and transactions for at least five years after the termination of a business relationship.
International Cooperation and Compliance
The North Korean government has emphasized the importance of international cooperation in combating money laundering and terrorist financing. The new regulations are designed to meet international standards and ensure that North Korea is not used as a haven for illegal activities.
Consequences of Non-Compliance
Financial institutions that fail to comply with the new regulations will face severe penalties, including fines and even criminal charges.
A Step Forward in Combating Financial Crime
The introduction of these stricter AML regulations marks an important step forward in North Korea’s efforts to prevent money laundering and terrorist financing. The government has demonstrated its commitment to combating financial crime and ensuring a safe and stable financial system for its citizens.