Financial Crime World

Financial Crime Prevention Policies in Democratic People’s Republic of Korea Criticized by UN Human Rights Office

Widespread Bribery and Corruption Exposed

The United Nations human rights office has released a report criticizing the financial crime prevention policies in North Korea, officially known as the Democratic People’s Republic of Korea (DPRK). According to the report, bribery is rampant in the country, with individuals forced to pay officials to survive.

State-Run Public Distribution System Collapse

The report, based on over 200 first-hand accounts from escapees, found that the State-run public distribution system collapsed in the mid-1990s. As a result, people have turned to informal markets, where they are forced to bribe officials to avoid arrest. The collapse of the public distribution system has left citizens without access to basic necessities like:

  • Food
  • Healthcare
  • Shelter
  • Work

Appalling Levels of Hunger and Poverty

The report highlights “appalling” levels of hunger affecting over 10.9 million people, or 43 percent of the population. Northern and rural provinces are the worst-affected areas.

  • The country’s military capacity has been prioritized at the expense of its citizens’ well-being.
  • One million young men and women have been taken out of the workforce to maintain a huge standing army.

Recommendations for Reform

The report suggests reforms to address these issues, including:

  • Reviewing the criminal code to end prosecutions for legitimate market activities
  • Respecting freedom of movement within the country

UN High Commissioner for Human Rights Michelle Bachelet stated that the constant threat of arrest and prosecution provides officials with a powerful means to extort money and favors from desperate individuals.

Vulnerability of Women and Girls

The report also highlighted the vulnerability of women seeking ways to make ends meet, who are often subjected to further abuse at the hands of third parties, including brokers and traffickers. The UN rights chief called for far- reaching changes, saying that only by addressing these issues can the endemic system of corruption be dismantled.

Conclusion

The report concludes that the State has failed to fulfill its obligations under international human rights law to ensure an adequate standard of living for its citizens. Addressing these issues could open a path to tackling wider human rights concerns in the country, including widespread bribery and financial crime.