Terror

Committee for Human Rights in North Korea
regulatory reforms in these areas.” 402 These recommendations have also been recognized in UN
Security Council resolutions, including at least one Chapter VII resolution specific to North Korea. 403
Beginning in February 2010, the FATF began to issue warnings about North Korea’s AML and
CFT deficiencies, and called on its members to “consider the risks” to “the international financial
system” arising from these deficiencies before doing business with North Korea. It also called
on North Korea to “work with the FATF to develop a viable AML/CFT regime in line with
international standards.” 404 The FATF re-issued this warning in June 405 and October of 2010. 406
On February 25, 2011, the FATF first called on members to put in place “countermeasures”
against North Korea’s abuse of the financial system. This warning imposed the strictest category
of advisory applicable to any jurisdiction, placing North Korea in the same category as Iran.
The FATF called on member governments “to advise their financial institutions to give special
attention to business relationships and transactions with the DPRK, including DPRK companies
and financial institutions,” “to apply effective counter-measures to protect their financial sectors
from money laundering and financing of terrorism … risks emanating from the DPRK,” and to
“protect against correspondent relationships being used to bypass or evade counter-measures
and risk mitigation practices.” Finally, the FATF called on member states to consider money
laundering and terrorist-financing risks “when considering requests by DPRK financial institutions
to open branches and subsidiaries” in their jurisdictions. 407
402 Financial Action Task Force, “About us: Who we are,” http://www.fatf-gafi.org/pages/aboutus/.
403 “Security Council Strengthens Sanctions on Democratic People’s Republic of Korea, in Response to 12
February Nuclear Test,” U.N. Press Release SC/10934 (07 March 2013).
404 Financial Action Task Force, “Public Statement,” 18 February 2010, http://www.fatf-gafi.org/documents/
documents/fatfpublicstatement-february2010.html.
405 Financial Action Task Force, “Public Statement,” 25 June 2010,
http://www.fatf-gafi.org/documents/documents/fatfpublicstatement-25june2010.html.
406 Financial Action Task Force, “Public Statement,” 22 October 2010, http://www.fatf-gafi.org/documents/
documents/fatfpublicstatement-22october2010.html.
407 Financial Action Task Force, “Public Statement,” 25 February 2011, http://www.fatf-gafi.org/documents/
documents/fatfpublicstatement-25february2011.html.
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