Regulatory Alerts2017-11-02
Advisory on North Korea’s Use of the International Financial System (FinCEN Advisory FIN-2017-A008)
The Financial Crimes Enforcement Network (FinCEN) issued this advisory to alert financial institutions to North Korean schemes that use front companies and trade networks to evade sanctions and finance weapons of mass destruction programs. The document details illicit methods such as bulk-cash smuggling and complex layering through China-based entities, while simultaneously announcing a final rule prohibiting U.S. institutions from maintaining correspondent accounts for Bank of Dandong. It provides specific red flags, including geographic concentrations in Liaoning province and Hong Kong, shared business addresses, and transaction patterns unrelated to stated business purposes, to help institutions identify and report suspicious activity.
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