North Korea’s Financial Activities Under Scrutiny
A recent Operational Alert issued by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has highlighted several jurisdictions and patterns that may be associated with North Korean use of the international financial system for laundering the proceeds of sanctions evasion.
Jurisdictions Associated with North Korean Activity
According to the alert, Canadian reporting entities are advised to exercise increased vigilance when dealing with transactions originating from or destined for:
- Liaoning Province, China
- Jilin Province, China
- Hong Kong
These jurisdictions have been linked to North Korean companies and individuals engaging in financial activities and other business dealings.
Patterns of Suspicious Activity
FINTRAC notes that there is a substantial amount of Canada-linked EFT reporting to cities in Liaoning Province, including:
- Dalian
- Shenyang
- Changchun (the capital of Jilin Province)
Transactions to or from these jurisdictions, particularly those indicating possible use of shell companies, may warrant additional scrutiny.
Additionally, the alert highlights patterns of sending and receiving international EFTs between Canadian businesses operating in unrelated sectors, as well as one-directional transactional patterns.
Reporting Obligations
Reporting entities are reminded of their obligations to submit suspicious transaction reports (STRs) or attempted STRs if there are reasonable grounds to suspect that a transaction is related to:
- Terrorist activity financing
- Money laundering
If you have any questions or concerns regarding this Operational Alert, please contact FINTRAC at:
Contact Information
- Email: guidelines-lignesdirectrices@fintrac-canada.gc.ca
- Facsimile: 613-943-7931
- Mail: FINTRAC, 24th Floor, 234 Laurier Avenue West, Ottawa, ON, K1P 1H7
- Telephone: 1-866-346-8722 (toll free)
Appendix I: Major Cities - Liaoning Province and Jilin Province
Liaoning Province, China
- Shenyang
- Dalian
- Anshan
- Liaoyang
- Fushun
- Dandong
- Jinzhou
- Yingkou
Jilin Province, China
- Changchun
- Jilin City
- Siping
- Liaoyuan
- Tonghua
- Songyuan
- Baicheng
- Yanbian