North Korea Designated as a 'High-Risk Country' for Money Laundering and Terrorism Financing Again This Year

15 Consecutive Years Since 2011

North Korea has been listed on the Financial Action Task Force (FATF) blacklist for 15 consecutive years.

On the 21st (local time), FATF announced at its general meeting in Paris, France, that North Korea, Iran, and Myanmar have been designated as "high-risk jurisdictions," the highest risk level related to efforts to prevent money laundering and terrorist financing.

FATF stated, "North Korea has failed to address significant deficiencies in its anti-money laundering and counter-terrorist financing systems, and there are serious concerns about threats posed by illicit activities related to the proliferation and financing of weapons of mass destruction (WMD)."

It added, "The expiration of the UN 1718 Expert Panel's mandate has hindered the ability to obtain reliable information to assess North Korea's proliferation financing risks," and "We will continue to monitor compliance with financial sanctions against North Korea."

The 1718 Expert Panel is an organization tasked with investigating suspected violations of sanctions against North Korea under UN Security Council Resolution 1718, adopted in response to North Korea's first nuclear test in October 2006. The panel has issued in-depth reports twice a year.

The expert panel was officially disbanded on May 1 last year after Russia, a permanent member of the Security Council, opposed extending its mandate in April last year.

As a result, North Korea has been named a high-risk jurisdiction by FATF for 15 consecutive years since 2011.

Established in 1989, FATF is a subsidiary body of the Organisation for Economic Co-operation and Development (OECD), primarily responsible for combating money laundering and blocking funds related to terrorism and the proliferation of weapons of mass destruction.