N. Korea Designated High-Risk for Money Laundering for 14th Year

The Financial Action Task Force (FATF), the international standard-setting body on illicit finance, has expressed great concern about North Korea and Russia increasing financial and arms deals and thus raising the proliferation financing risk.

According to the Financial Intelligence Unit (FIU) under the Financial Services Commission on Sunday, the FATF discussed sanctions against countries that fail to meet international standards in the plenary session held from last Sunday to Friday in Singapore, involving over 200 member states, including South Korea. 

The FATF assessed each country’s implementation of international standards and maintained North Korea on the list of “high-risk” countries for money laundering, along with Iran and Myanmar. 

North Korea has been classified as a high-risk country subject to a call for action since 2011.

In the session, the South Korean delegation led by FIU chief Park Kwang expressed deep concerns about Russia, whose FATF membership was suspended, deepening economic and military cooperation with North Korea and noting that Russia’s financial deals with the North are a violation of its duty as a FATF member.