Financial Crime World

How to Report Suspected Financial Crimes in North Korea

In the Democratic People’s Republic of Korea, financial institutions and casinos play a crucial role in combating money laundering and terrorist financing by reporting suspicious transactions.

What is a Suspicious Transaction?

A Suspicious Transaction Report (STR) is a key tool in fighting financial crimes. Financial institutions and casinos must file an STR when they have reasonable grounds to suspect that funds received are illegal assets or that a customer is involved in money laundering or terrorist financing.

How to File a Report

To report a suspicious transaction, financial institutions and casinos must act quickly and without delay. They can do so by filing an STR with the Korea Financial Intelligence Unit (KoFIU) using a standard form. The form requires information about:

  • The reporting entity
  • The grounds for suspicion
  • Details about the customer
  • A description of the transaction
  • Any relevant data

Consequences of Not Reporting

Failing to report a suspicious transaction can result in severe consequences, including:

  • Disciplinary action against employees
  • Administrative fines for financial institutions

The KoFIU will conduct comprehensive analysis of all STRs received and may share information with other law enforcement agencies if it finds reasonable grounds to suspect money laundering or terrorist financing.

Additional Reporting Requirements

Financial institutions and casinos must also report any transactions that they have been informed are criminal proceeds or involve money laundering to the KoFIU without delay. These reports can be filed:

  • Online
  • In hard copy
  • As an electronic file
  • Supplemented by fax or telephone if necessary

After Receiving a Report

After receiving an STR, the KoFIU will conduct further investigation and share information with relevant law enforcement agencies, including:

  • The Public Prosecutor’s Office
  • National Police Agency
  • National Tax Service
  • Korea Customs Service
  • Financial Services Commission
  • National Intelligence Service

These agencies may take appropriate law enforcement actions based on the information provided in the report.

Conclusion

By reporting suspicious transactions, financial institutions and casinos can play a crucial role in combating money laundering and terrorist financing in North Korea. It is essential that they follow these guidelines to ensure that their reports are accurate and timely.