Regulatory Alerts2017-09-22 | FinCEN Advisory FIN-2017-A007Added
Advisory on North Korea’s Use of the International Financial System (FinCEN Advisory FIN-2017-A007)
This advisory alerts financial institutions to red flags associated with North Korean schemes that use front companies, trade-based payment schemes, and financial representatives to evade sanctions and finance weapons programs. It outlines specific indicators such as geography, shared addresses, and surge activity cycles to help institutions identify illicit activity. The document reiterates regulatory obligations under Section 311 of the USA PATRIOT Act, including the prohibition on correspondent accounts for North Korean financial institutions and requirements for special due diligence. Financial institutions are instructed to file Suspicious Activity Reports when transactions lack a lawful purpose and are encouraged to share information under Section 314(b) of the USA PATRIOT Act.