Financial institutions warned of fraud by Iran regime

The Financial Crimes Enforcement Network issued an advisory to inform financial institutions of updates to the Financial Action Task Force regarding money laundering in North Korea and combatting terrorism in Iran.

The Financial Action Task Force called on its members to apply effective counter-measures and targeted financial sanctions in accordance with applicable United Nations Security Council Resolutions, to protect their financial sectors from money laundering, financing of terrorism and Weapons of Mass Destruction (WMD) proliferation financing from the Democratic People’s Republic of Korea.

The Financial Crimes Enforcement Network noted that the North Korean government continues to use state-controlled financial institutions and front companies to conduct illicit international financial transactions which support the proliferation of WMD and the development of ballistic missiles.

The enforcement network found the Chinese Bank of Dandong facilitated financial activity for North Korean entities designated by the United States and listed by the UN for proliferation of WMD as well as for front companies acting on their behalf.

The Financial Action Task Force also released a statement that Iran must enact legislation by June 2019 that includes adequately criminalizing terrorist financing by identifying and freezing terrorist assets identified through United Nations Security Council resolutions.

The task force called on its members to advise their financial institutions increase due diligence with respect to business relationships and transactions with natural and legal persons from Iran. The task force identified tactics used by Iran to include forging documents and hiding illicit activities under official cover of government entities.

The mission of the Financial Crimes Enforcement Network is to safeguard the financial system from illicit use as well as promote national security through the strategic use of financial authorities.

The United States is one of 38 intergovernmental members of the Financial Action Task Force which establishes international standards to combat money laundering and counter the financing of terrorism and proliferation of weapons of mass destruction.

Source » wlns

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