An international money laundering watchdog says member states should pay “special attention” to financial transactions with North Korea.
The Paris-based Financial Action Task Force last week reaffirmed its earlier decision to put the community country on its watch list because of North Korea’s “failure to address the significant deficiencies in its anti-money laundering and combating the financing of terrorism,” the task force said in a public statement released on its website. It said that failure poses “serious threat … to the integrity of the international financial system.”
The task force had a plenary meeting last week in Brisbane, Australia.
“The FATF reaffirms its 25 February 2011 call on its members and urges all jurisdictions to advise their financial institutions to give special attention to business relationships and transactions with the [Democratic People’s Republic of Korea], including DPRK companies and financial institutions,” it said.
The group also expressed concern about the North’s noncompliance with its recommendations to fight money laundering.
In an apparent attempt to ease financial sanctions by the United States and the United Nations, the North promised steps to address money laundering concerns. In July 2014, Pyongyang announced it had joined the Asian affiliate of the anti-money laundering body as an observer. Later, the North sent a letter to the FATF indicating its commitment to implementing actions recommended by the group.
The FATF, created in 1989, has 36 members, comprising 34 member countries and territories and two regional organizations.
Jee Abbey Lee contributed to this report, which was produced in collaboration with the VOA Korean service.
