FATF Reaffirms North Korea as High‑Risk Money‑Laundering Jurisdiction for 16th Year
Updated (3 articles)
FATF Assessment Released on February 18, 2026 The Financial Action Task Force published its latest assessment on Feb. 18, 2026, confirming that North Korea remains in the “high‑risk jurisdiction” category for money‑laundering and terrorism financing for the 16th consecutive year [1]. The report places the Democratic People’s Republic of Korea alongside Iran and Myanmar, indicating comparable concerns about illicit financial activity [1]. FATF warns that the DPRK’s activities pose serious threats linked to weapons‑of‑mass‑destruction proliferation and financing [1].
North Korea’s Anti‑Money‑Laundering Deficiencies Remain Unresolved FATF officials state that the DPRK continues to fail in addressing significant gaps in its anti‑money‑laundering and counter‑terrorism financing regime [1]. The agency highlights ongoing illicit operations that facilitate the financing of terrorism and the procurement of prohibited weapons [1]. These unresolved deficiencies keep the country in the highest‑risk tier despite international pressure [1].
South Korean FIU Confirms International Designation South Korea’s Financial Intelligence Unit, part of the Financial Services Commission, issued a statement on Feb. 18, 2026, acknowledging the FATF’s designation of North Korea as a high‑risk jurisdiction [1]. The FIU’s announcement aligns with the global assessment and underscores regional concerns about DPRK‑linked financial crimes [1]. It also signals South Korea’s commitment to monitoring and enforcing AML/CFT measures against North Korean entities [1].
Historical Context Shows Continuous Listing Since 2011 FATF, operating under the OECD, has categorized North Korea as a high‑risk jurisdiction continuously since 2011, marking a 16‑year streak of designation [1]. This long‑standing status reflects persistent shortcomings in the DPRK’s regulatory framework [1]. The consistency of the listing underscores the international community’s view of North Korea as a chronic source of illicit finance [1].
Timeline
2011 – The Financial Action Task Force places North Korea on its “high‑risk jurisdiction” list, beginning a 16‑year streak of designations for money‑laundering and terrorism‑financing concerns [1].
2024 – South Korea imposes martial law amid escalating political unrest, granting the military expanded powers to maintain order and signaling a severe breakdown in civilian governance [3].
2024 – The Constitutional Court impeaches the sitting president over alleged abuses of power, removing the leader and triggering a constitutional crisis [3].
2024 – A snap parliamentary election is called to restore democratic legitimacy, with parties campaigning on anti‑corruption and security platforms amid the turmoil [3].
Feb 5, 2026 – South Korea’s Financial Services Commission announces it will seek legal revisions “granting the Financial Intelligence Unit authority to freeze accounts suspected of facilitating crimes such as drug trafficking and gambling,” and will tighten the crypto travel rule for transactions exceeding 1 million won to close AML gaps in digital assets [2].
Feb 5, 2026 – The FSC also outlines a new AML framework specifically for stable‑coin transactions and pledges to deepen information‑sharing cooperation with China, Singapore, Cambodia and other Asian partners to combat cross‑border money laundering [2].
Feb 18, 2026 – The FATF releases its latest assessment, confirming North Korea remains a “high‑risk jurisdiction” for the 16th consecutive year alongside Iran and Myanmar, and warns that the DPRK “continues to fail in addressing significant gaps” in its AML/CTF regime, posing serious threats linked to WMD proliferation and illicit financing [1].