North Korea Country Summary
Higher Risk
View full Ratings TableSanctions
Higher Concern
FATF AML Deficient List
Higher Concern
Terrorism
Higher Concern
Corruption
Higher Concern
US State ML Assessment
Medium Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Lower Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
If you would like a demo of our Subscription area, please reserve a day/time that suits you best using this link, or you may Contact Us for further information.
Anti Money Laundering
FATF Status
North Korea is subject to a FATF call on its members and other jurisdictions to apply counter-measures to protect the international financial system from the on-going and substantial money laundering and terrorist financing (ML/FT) risks emanating from the jurisdictions.
Compliance with FATF Recommendations
North Korea has not yet undertaken a Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards.
Sanctions
North Korea is subject to one of the world's most comprehensive sanctions regimes imposed by the United Nations Security Council, with nine major resolutions since 2006 that impose arms and related materiel embargoes, non-proliferation measures, trade restrictions, financial sanctions, and maritime, aviation, and labor controls. Beyond the UN framework, autonomous sanctions by individual countries and the EU—led by the United States, the European Union, the United Kingdom, Canada, Japan, Australia, New Zealand, Switzerland, Norway, Iceland, Turkey, and South Korea—include asset freezes, comprehensive trade embargoes, sectoral restrictions, travel bans, and vessel or shipping prohibitions.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 15 |
| World Bank: Control of Corruption Percentile Rank | 2 |
North Korea is characterized by pervasive crime and corruption, with the government itself acting as the primary criminal organization, deeply involved in various illicit activities such as human trafficking, arms smuggling, and drug production. The totalitarian regime maintains strict control over the population, resulting in a lack of independent judicial processes and civil society, which further exacerbates the environment of corruption and crime while limiting any resilience against these issues.
Economy
North Korea's economy is characterized by a closed and centralized structure, heavily influenced by a Soviet-style model since the 1940s. The nation faces severe economic challenges, including inefficiencies, reliance on international aid, and chronic food shortages, which contribute to its low GDP per capita and ongoing stagnation. Although the government has attempted to attract foreign investment through special economic zones, the investment climate remains precarious due to isolationist policies, international sanctions, and the state's strict control over economic activities, making it a high-risk environment for potential investors.
Subscribe to
Professional Plus
- Unlimited Access to full Risk Reports
- Full Dataset Download
- API Access
- Virtual Asset Risk Assessments
