N. Korea lambasts money-laundering watchdog over renewed 'high-risk' label
Quick Look
- North Korea's Foreign Ministry denounced the Financial Action Task Force for keeping Pyongyang on its blacklist of high-risk jurisdictions, claiming the agency serves U.S. hostile policy.
- The FATF maintained North Korea's designation alongside Iran and Myanmar, citing continued failures to address deficiencies in anti-money laundering and terrorist financing defenses, as well as threats from illicit weapons of mass destruction activities.
AI-generated summary
Why It Matters
The FATF has categorized North Korea as a high-risk jurisdiction since 2011. The task force works under the Organization for Economic Cooperation and Development.
SEOUL, Nov. 6 (Yonhap) -- North Korea on Friday denounced the intergovernmental anti-money laundering body for keeping Pyongyang on its blacklist, claiming the agency serves the United States' hostile policy toward it.
At a meeting in Paris in late October, the Financial Action Task Force (FATF) decided to keep the North on its list of a "high-risk jurisdiction subject to a call for action."
The designation applies to countries with serious failings in preventing money laundering, terrorist financing and weapons proliferation.
"The Foreign Ministry of the DPRK expresses strong displeasure" over the FATF's practice of "encroaching upon the dignity, rights and interests of a sovereign state," a ministry spokesperson said in a statement carried by the Korean Central News Agency (KCNA).
DPRK stands for the Democratic People's Republic of Korea, the North's official name.
"'Money laundering,' 'financing of terrorism,' 'drug trafficking' and 'counterfeiting' have nothing to do with the DPRK," the official said.
"The FATF has turned into a conspiracy group and an extremely politicized organization serving the U.S. hostile policy toward the DPRK," it said, adding the North "will never tolerate the slightest attempt to infringe upon the dignity, rights and interests of the state."
The FATF maintained North Korea in its top risk category, alongside Iran and Myanmar.
On its website, the watchdog said it remains concerned by Pyongyang's "continued failure to address the significant deficiencies" in its defense against money laundering and terrorist financing, and by the "serious threats" posed by its illicit activities tied to weapons of mass destruction.
The task force, which works under the Organization for Economic Cooperation and Development, has categorized North Korea as a "high-risk jurisdiction" since 2011.
Open Questions
- What specific actions North Korea might take in response to the FATF designation
- Whether the FATF will reconsider North Korea's status in future meetings
- What specific deficiencies the FATF identified in North Korea's anti-money laundering and terrorist financing defenses
