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FATF Again Places N. Korea on Terrorism Financing Blacklist

FATF Again Places N. Korea on Terrorism Financing Blacklist

The Financial Action Task Force(FATF) has again named North Korea as a high-risk jurisdiction for money laundering and terrorist and proliferation financing.

The global watchdog on Friday notified member countries of the risks and urged implementation of necessary response measures to safeguard the global financial system.

The agency also designated Iran and Myanmar as high-risk and noted that "countermeasures" were necessary for North Korea and Iran while Myanmar, though presenting a lower risk than the other two, still required "enhanced due diligence."

The FATF said that it remains concerned by North Korea's failure to address the significant deficiencies in its anti-money laundering systems or combat the financing of terrorism and the serious threats they pose to the integrity of the international financial system. 

It also cited serious concerns with the threat posed by Pyongyang's illicit activities related to financing for the proliferation of weapons of mass destruction.

It called on members to advise their financial institutions to pay special attention to business relationships and transactions with North Korea and to apply effective counter-measures and targeted financial sanctions in accordance with applicable UN Security Council resolutions.  

North Korea has been on the so-called blacklist since 2011. Since February 2020, in light of the COVID-19 pandemic, the FATF paused the review process for Iran and the North while maintaining their high-risk statuses.

[Photo : YONHAP News]

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