Financial Crime World

Korean Authorities Crack Down on Financial Crime and Terrorism Financing

In a significant move to combat financial crime and terrorism financing, the Democratic People’s Republic of Korea (DPRK) has updated its sanctions list, targeting entities and individuals involved in the country’s military programs. The United Nations Security Council made the changes on March 7, 2024, as part of ongoing efforts to disrupt North Korea’s illegal activities.

Targeting Entities and Individuals

The amended entry relates to the Ministry of the People’s Armed Forces (MPAF), which was previously listed for its involvement in facilitating DPRK’s military programs. The MPAF is responsible for managing the general administrative and logistical needs of the Korean People’s Army, making it a key player in Pyongyang’s military apparatus.

International Obligations

Under international law, financial institutions and individuals are required to freeze any assets or funds linked to designated entities, including the MPAF. Failure to comply with these sanctions can result in severe legal consequences, including criminal charges.

Updates from the UK and Isle of Man Governments

The UK’s Foreign, Commonwealth and Development Office has also updated its Consolidated List, which provides details of those designated under sanctions legislation related to DPRK. The list is available on the government’s website, along with further information on the UN measures and the Isle of Man Government’s financial sanctions regime.

What You Need to Know

  • Financial institutions and individuals are required to freeze any assets or funds linked to designated entities, including the MPAF.
  • Failure to comply with sanctions can result in severe legal consequences, including criminal charges.
  • The UK’s Consolidated List has been updated to reflect the changes to the DPRK sanctions list.
  • Further information on the UN measures and the Isle of Man Government’s financial sanctions regime is available online.

What You Must Do

  • Check whether you maintain any accounts or hold funds for designated individuals, including those linked to the MPAF.
  • Freeze such accounts or funds and report your findings to the Financial Intelligence Unit (FIU).
  • Failure to comply with sanctions legislation can result in criminal charges.