Reporting Suspicious Activity in North Korea: A Step-by-Step Guide
As part of efforts to combat money laundering and terrorist financing, financial institutions and casinos in North Korea are required to report suspicious transactions to the authorities. In this article, we will outline the steps involved in reporting suspicious activity and the consequences of failing to do so.
What is a Suspicious Transaction Report?
A Suspicious Transaction Report (STR) is a key tool in the fight against money laundering and terrorist financing. Financial institutions and casinos are required to file an STR when they have reasonable grounds to suspect that funds received are illegal or that a customer is engaged in money laundering or terrorist financing.
Basic Framework for Reporting Suspicious Activity
Financial institutions and casinos must report suspicious transactions to the Korea Financial Intelligence Unit (KoFIU) without delay if they have reasonable grounds to suspect that:
- Funds received are illegal assets, or
- A customer is engaged in money laundering or financing for terrorism
Failure to report such activities can result in disciplinary action against employees and administrative fines for financial institutions.
How to File an STR
When a front desk teller suspects a transaction or movement of funds is related to money laundering or terrorist financing, they will report it to the reporting officer. The reporting officer will review the information and, if there are reasonable grounds for suspicion, file an STR using a standard form.
Required Information
The STR must include:
- Name of the reporting entity
- Grounds for suspicion
- Information about the customer
- Description of the transaction
- List of data kept in relation to the reported transaction
STRs can be filed online, in hard copy, or as an electronic file. If urgent, it can be reported by fax or telephone and supplemented later.
Dissemination of STR
The KoFIU will analyze all STRs received and pass on those that have reasonable grounds for suspicion to appropriate law enforcement agencies, such as the Public Prosecutor’s Office, National Police Agency, and National Intelligence Service. These agencies will conduct further investigation and take appropriate action.
Consequences of Non-Compliance
In North Korea, it is crucial that financial institutions and casinos understand their responsibilities in reporting suspicious activity to help combat money laundering and terrorist financing. By following these steps, they can play a vital role in maintaining the integrity of the financial system. Failure to report suspicious activity can result in severe consequences, including disciplinary action against employees and administrative fines for financial institutions.
By understanding the importance of reporting suspicious activity, financial institutions and casinos can help ensure the integrity of North Korea’s financial system and prevent illegal activities from taking place.