The Paris-based Financial Action Task Force, a money laundering watchdog, last week reaffirmed its earlier decision to put North Korea 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 group also expressed concern about North Korea’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 some time back, North Korea 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, North Korea sent a letter to the FATF indicating its commitment to implementing actions recommended by the group.