Here is the rewritten article in markdown format:
North Korea Adopts Anti-Money Laundering Law to Join Global Financial Community
PYONGYANG, DEMOCRATIC PEOPLE’S REPUBLIC OF KOREA - April 20, 2016
In a significant move aimed at joining the global financial community and reducing international sanctions, North Korea has adopted a new law on anti-money laundering (AML) and combating terrorism financing.
Adoption of the Law
The Law on Anti-Money Laundering and Combating Financing of Terrorism was adopted by the Presidium of the Supreme People’s Assembly on April 20, 2016. The law has 40 articles divided into six chapters and replaces the previous AML law that was adopted in 2006.
Key Provisions
The new law requires financial institutions to implement AML measures, including:
- Customer due diligence: Financial institutions must verify the identity of customers and maintain records of customer information.
- Transaction monitoring: Financial institutions must monitor transactions for suspicious activity and report any unusual patterns or transactions to the authorities.
- Reporting suspicious transactions: Financial institutions must report any suspicious transactions to the authorities, including those related to money laundering and terrorism financing.
The law also prohibits the use of cash in excess of 100 million North Korean won (approximately $80 USD) for transactions, which is seen as a measure to prevent money laundering.
Impact on International Sanctions
North Korea has been under international sanctions since its nuclear test in 2006. The adoption of this new law is expected to help the country’s economy and reduce the risk of being blacklisted by global financial institutions.
“By adopting this law, North Korea is showing its commitment to joining the global financial community and reducing international sanctions,” said a Seoul-based expert on North Korean affairs. “However, the implementation of this law will be crucial in determining its effectiveness.”
Challenges Ahead
The new AML law comes at a time when North Korea’s economy is facing significant challenges, including high inflation and a decline in foreign investment. The country has also been subject to international sanctions imposed by the United Nations Security Council in response to its nuclear tests.
While the adoption of this new law is seen as a positive step, experts caution that it may not be enough to persuade the global community to lift sanctions on North Korea.
“It’s just one step towards joining the global financial community,” said a US-based expert on North Korean affairs. “The country still needs to demonstrate its commitment to implementing international norms and standards on AML.”
Relations with China
North Korea’s adoption of an AML law is also seen as a significant development in the country’s relations with China, its main ally.
“China has been pushing for North Korea to implement AML measures as part of its efforts to combat money laundering and terrorism financing,” said a Beijing-based expert. “This new law is likely to be welcomed by China as it reflects North Korea’s commitment to addressing these global concerns.”
Conclusion
The adoption of an anti-money laundering law in North Korea is seen as a significant step towards joining the global financial community and reducing international sanctions. However, its effectiveness will depend on its implementation and whether it meets international standards.
Sources:
- Law on Anti-Money Laundering and Combating Financing of Terrorism (adopted by the Presidium of the Supreme People’s Assembly, April 20, 2016)
- State Administration of Foreign Exchange (SAFE) Circular regulating overseas cash withdrawals using Chinese bank cards (December 29, 2017)
- US Department of the Treasury press release on North Korea sanctions (November 21, 2017)
- China’s Ministry of Commerce press release on China-North Korea trade relations (October 20, 2017)