North Korea adopts anti-money laundering law say the NK News – as the state is the only organ in the country that would be in a position to undertake these activities I think we can place this statement of intent in the comedy box….
https://www.nknews.org/2016/05/north-korea-adopts-anti-money-laundering-law/
Pyongyang sends message to international society that it hopes to have to sanctions lifted: experts
North Korea has adopted a new law that prohibits money laundering and financing terrorism, the Korean Central News Agency reported on Tuesday, indicating its desire to join the international anti-money laundering organization.
The Presidium of the Supreme People’s Assembly declared the law, composed of six chapters with 40 articles, to be in effect. Its clauses include those on verification of customers’ data, building an internal reporting system for suspicious transactions and establishing an institution which supervises the process.
Experts said it appears North Korea is trying to achieve full membership in the Asia Pacific Group on Money Laundering (APG), a regional body of the Financial Action Task Force on Money Laundering (FATF). Pyongyang joined the organization as an observer in July 2014, but was blacklisted by FATF with Iran.
“This blacklisting brings against (the) DPRK preventative counter-measures from the international financial system, such as enhanced monitoring and restricted financial access,” Tristan Webb, former senior DPRK research analyst for the UK Foreign and Commonwealth Office, told NK News.
However, further steps are required for full membership in addition to adopting the law.
“North Korea must reveal annual reports for three years for the purpose of monitoring to judge its sincerity,” Rhee Yoojin, research fellow for the Reunification Business Department at Korea Development Bank based in Seoul, told NK News.
Even though this measure doesn’t necessarily demonstrate North Korea’s intent for an open door policy or active economic reform, it does signify its desire to overcome international sanctions.
“This has been a bar that prohibits foreign finance organizations’ from advancing into North Korea,” Rhee said.
Other than the blacklisting by the FATF, foreign countries should not open new representative offices, subsidiaries, branches or banking accounts in the DPRK according to article 34 of the recent UN Security Council resolution passed in response to North Korea’s most recent nuclear test.
“It’s a signal from North Korea to lift the sanctions, but has a long way to go,” Rhee said. “It’s remarkable to see the statements from the U.S., North Korea and APG.”
Webb said meeting FATF’s standard won’t necessarily mean sanctions will be lifted.
“Nonetheless, meeting FATF standards is one of the necessary steps DPRK needs to take if it hopes to ever detoxify itself in international finance.”
Without sanctions, however, North Korea will face further hardships, Andrea Berger from Royal United Services Institute told NK News.
“Pyongyang is looking to undercut arguments that it is anything but sanctions that is obstructing its efforts to engage in global trade and investment,” she said.
However, this may be a hopeful signal for North Korea’s future investment opportunities from the Asia Development Bank (ADB). China blocked North Korea’s entry into the ADB last spring over its lack of transparency over its finances.
“This might lead to a review of the decision to reject (the) DPRK from the ADB membership,” Webb said.
Hyundai Research Institute suggested, in a report published last December, that North Korea can improve its energy, transportation, tourism, environmental problems and water utilities through investment from the ADB.
“(It) will send another signal to China that its troublesome nuclear neighbor can at times be relied upon to try and conform to international norms,” Webb said.
