Financial Crime Laws and Regulations in North Korea Tightened

Strengthened Measures to Combat Money Laundering and Terrorist Financing

The Democratic People’s Republic of Korea has recently updated its financial crime laws and regulations, enhancing measures to combat money laundering and terrorist financing.

Key Changes

• The Ministry of National Defence (MPAF), which manages the general administrative and logistical needs of the Korean People’s Army, is now subject to an asset freeze.
• Financial institutions and other persons are required to check whether they maintain any accounts or hold funds for, or provide financial services to, designated individuals.

Consequences of Non-Compliance

• Those found to be in violation of these regulations face severe consequences, including criminal prosecution.

Global Cooperation

• The Foreign, Commonwealth and Development Office has updated the Consolidated List, which provides details of those designated under sanctions legislation.
• The Isle of Man Government website has published information on the sanctions regime related to North Korea, as well as links to other financial sanctions regimes.

Commitment to Combating Financial Crime

• The amendment aims to prevent the facilitation of North Korea’s military programmes and ensure that financial institutions comply with international regulations.
• The update reflects the country’s commitment to combating financial crime and complying with global standards.

Further Information

• For more information on the UN measures in respect of Democratic People’s Republic of Korea, please visit the relevant UN Sanctions Committee webpage.

Conclusion

The amendment aims to strengthen financial crime laws and regulations in North Korea, subjecting key entities to asset freezes and requiring financial institutions to comply with international regulations. Failure to comply will result in severe consequences, including criminal prosecution.