Financial Crime Prevention Policies in North Korea Under Scrutiny

A report from the Financial Action Task Force (FATF) has highlighted significant deficiencies in North Korea’s anti-money laundering and combating the financing of terrorism (AML/CFT) regime, posing a serious threat to the integrity of the international financial system.

Deficiencies in AML/CFT Regime

The FATF has identified significant deficiencies in North Korea’s AML/CFT regime, which poses a serious threat to the integrity of the international financial system. The organization urges all member countries and other jurisdictions to apply enhanced due diligence measures proportionate to the risks arising from North Korea.

Concerns about Illicit Activities

In addition, the FATF has expressed concerns about North Korea’s illicit activities related to the proliferation of weapons of mass destruction (WMDs) and its financing. The organization reaffirms its 2011 call on members to advise their financial institutions to give special attention to business relationships and transactions with:

North Korean companies
Financial institutions
Those acting on behalf of North Korean entities

Targeted Financial Sanctions

The FATF has called for targeted financial sanctions in accordance with applicable United Nations Security Council Resolutions to protect the international financial system from money laundering, financing of terrorism, and WMD proliferation financing risks emanating from North Korea.

By implementing these measures, the FATF aims to prevent the misuse of the international financial system by North Korea and ensure that the global economy remains safe and secure.