Korea Tightens Anti-Terrorism Financing Regulations
The Democratic People’s Republic of Korea has strengthened its anti-terrorism financing regulations, introducing a range of measures aimed at preventing the misuse of financial systems to fund terrorist activities.
New Regulations Based on Key Legislation
The new regulations are based on two key pieces of legislation: the Financial Transaction Reports Act and the Act on Prohibition against the Financing of Terrorism and Proliferation of Weapons of Mass Destruction.
Financial Transaction Reports Act
- Serves as the legal foundation for the country’s anti-money laundering and counter-terrorism financing regime
- Requires financial institutions to implement customer due diligence, report suspicious transactions, and maintain records of cash transactions
- Enables regular inspections and investigations to ensure compliance with these requirements
Act on Prohibition against the Financing of Terrorism and Proliferation of Weapons of Mass Destruction
- Criminalizes the provision of funds or other forms of support to terrorist organizations or individuals, as well as those involved in the proliferation of weapons of mass destruction
- Empowers financial authorities to impose sanctions on individuals and entities found to be engaged in such activities
Regulations Aimed at Preventing Misuse of Financial Systems
The Democratic People’s Republic of Korea has issued a range of regulations aimed at preventing the misuse of financial systems, including:
Financial Transaction Report and Supervision Regulation
- Sets out requirements for reporting suspicious transactions
- Provides guidelines for investigating and sanctioning financial institutions found to be non-compliant
Monitoring and Sanctioning Regulation on Financial Transaction Report and Supervision
- Enables financial authorities to monitor and investigate financial institutions’ compliance with anti-terrorism financing regulations
- Authorizes the imposition of sanctions on non-compliant institutions
Regulations Aimed at Preventing Financing of Terrorism
The country has also issued regulations aimed at preventing the financing of terrorism, including:
Regulations on Prohibition against the Financing of Terrorism
- Sets out requirements for identifying and reporting suspicious transactions
Regulations on the Designation/Revocation of Persons Subject to Restrictions on Financial Transactions, etc.
- Enables financial authorities to designate individuals or entities as being subject to restrictions on financial transactions
- Authorizes revoking such designations when appropriate
Impact on Anti-Terrorism Financing Efforts
The new regulations are expected to have a significant impact on the country’s anti-terrorism financing efforts, enhancing its ability to prevent the misuse of financial systems and disrupt the activities of terrorist organizations. The measures are also seen as a positive step towards promoting international cooperation in combating terrorism and preventing the proliferation of weapons of mass destruction.