North Korea Country Summary

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.

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.

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.