Korean Financial Crime Investigation Process Under Scrutiny Amidst Sanctions Amendments

Strengthening Efforts Against Financial Crime

The Democratic People’s Republic of Korea (DPRK) has updated its sanctions list, removing one entity from the freeze, as part of an ongoing effort to combat illegal activities and maintain international cooperation.

Recent Amendment to the United Nations Security Council’s Sanctions List

On March 7, 2024, the United Nations Security Council updated its sanctions list, which was subsequently amended by the DPRK. The entry for the Ministry of the People’s Armed Forces (MPAF) remains subject to asset freeze.

MPAF: Managing General Administrative and Logistical Needs of the Korean People’s Army

According to sources, MPAF manages the general administrative and logistical needs of the Korean People’s Army. It was first listed on December 22, 2017, and has been subject to sanctions ever since.

Broader Effort to Strengthen Financial Crime Investigation Process

The DPRK is implementing several measures aimed at combating money laundering and terrorist financing, including the establishment of a Financial Intelligence Unit (FIU). Financial institutions and other persons are required to:

• Check whether they maintain any accounts or otherwise hold funds for designated individuals
• Freeze such accounts if found
• Report their findings to the FIU

Consequences of Non-Compliance

Failure to comply with financial sanctions legislation is considered a criminal offense in the DPRK. The government has also implemented strict penalties for attempting to circumvent its provisions.

Accessing the Updated Sanctions List

The updated sanctions list was published on the Consolidated List, which provides details of those designated under sanctions legislation. Further information can be found on the UN Sanctions Committee webpage.

Isle of Man Government Updates Its Sanctions Regime Related to the DPRK

In related news, the Isle of Man Government has also updated its sanctions regime related to the DPRK. More information can be found on the Customs and Excise pages of the government website, including links to other financial sanctions regimes.

Ongoing Effort for International Cooperation Against Financial Crime

The DPRK is working closely with global partners to combat illegal activities and strengthen its financial system, as part of an ongoing effort to maintain international cooperation against financial crime.