Financial Crime World

Financial Crime Control Crucial in Democratic People’s Republic of Korea

Proliferation Financing Risks Emanate from DPRK, Says FATF

Buenos Aires, November 3, 2017 - The Financial Action Task Force (FATF) has expressed deep concern over the proliferation financing risks emanating from the Democratic People’s Republic of Korea (DPRK). The international organization emphasizes the need for robust implementation of FATF standards to disrupt the DPRK’s illicit financial activities.

Implementing FATF Recommendations

Effective Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regimes are crucial for countering illicit finance. Specifically, countries should:

  • Robustly implement targeted financial sanctions against individuals and entities without delay
  • Consider proposing new listings of individuals and entities meeting designation criteria
  • Cooperate and coordinate between relevant authorities on developing and implementing policies and activities to combat proliferation financing
  • Share relevant information

UNSCR Provisions

The United Nations Security Council (UNSC) has recently passed several important Resolutions concerning DPRK. The FATF highlights that, in addition to implementation of targeted financial sanctions according to FATF Recommendation 7, the following provisions are particularly relevant to disrupt the DPRK’s illicit financial activities:

  • States shall prohibit the opening and operation of new branches, subsidiaries, and representative offices of DPRK banks in their territories
  • States shall prohibit financial institutions within their territories or subject to their jurisdiction from opening new representative offices or subsidiaries, branches, or banking accounts in the DPRK
  • Companies performing financial services commensurate with those provided by banks are considered financial institutions for these purposes

FATF Call for Countermeasures

For the last six years, the FATF has called upon its members and urged all jurisdictions to apply effective countermeasures to protect their financial systems from the money laundering/terrorist financing (ML/TF) and proliferation financing threat emanating from DPRK. The international organization emphasizes that robust implementation of FATF standards is crucial in disrupting the DPRK’s illicit financial activities