Kuala Lumpur, Malaysia (PressExposure) May 17, 2009 -- The Anti Money Laundering Network, a leading international Group comprising risk management and compliance consultancy, information services, training, high-level Fora and The Society of Anti Money Laundering Professionals warns businesses worldwide of the imminent risk of the imposition of additional sanctions against the Democratic People's Republic of Korea, also known as North Korea or the DPKR.
Following the announcement that DPKR effected an underground test of a large nuclear device within the past few days, the United Nations has expressed condemnation and outrage. However, following that test, DPKR announced an exclusion zone in the Sea of Japan and tested two missiles which landed in the sea.
The UN and other multi-country groups have expressed their deep concern over DPKR's activities and are meeting to discuss possible actions.
Whilst it is probable that some form of economic sanctions will result from the UN, in the view of The Anti Money Laundering Network a more immediate response is likely to come from countries or groups where decision making is less difficult.
The Anti Money Laundering Network therefore expects to see sanctions by the USA, which will be published in its OFAC list, within the next two to three days. These sanctions are likely to be a bar on any US corporation - including its banks - dealing directly or indirectly with named North Korean entities including its financial institutions. There is a serious likelihood of there being action taken against at least one non-DPKR bank which is known to have dealings with DPKR.
Although the most obvious candidate for this would be a Chinese bank, it is considered unlikely, for political reasons, that the USA would name a Chinese mainland bank under either the USA PATRIOT Act or OFAC.
It is likely that action will be taken against a DPKR-controlled banking unit overseas and / or those providing services to such a banking unit.
There is little doubt that the USA will name, under OFAC, some of those which it has identified as having a trading relationship with North Korean companies or businesses.
The result of such action is that no US company, or subsidiary of US company, may deal with the named entity or person. Any banking transaction conducted in USD contains sufficient information for US banks to identify transactions suspected of being in breach of such instructions and the banks are obliged to report such transactions to the US government and, in most cases, to freeze the funds.
The US Government may then choose to name any person or entity who was a party to those transactions, effectively extending the ambit of the sanctions.
The effect of such sanctions applies to financial institutions and commercial concerns including training companies.
Contact: The Anti Money Laundering Network - Global Response Centre - +6 03 2078 9152 - Kuala Lumpur @ GMT +8
Notes for editors:
The Anti Money Laundering Network is the only group of companies that specialising exclusively in Anti Money Laundering and Counter Terrorist Financing consultancy, training and related comprehensive services and products since 1994. We have representation in Asia, Europe and America
The Society of Anti Money Laundering Professionals is part of the Network. It is a global Society for senior managers and compliance officers, dedicated to raising standards in combating money laundering and terrorist financing.
This message originates from a company within The Anti Money Laundering Network at http://www.antimoneylaundering.net/