North Korea has lost its observer status in the Asia/Pacific Group on Money Laundering (APG) after failing to meet the required standards for combating money laundering and terrorist financing. The decision, which also cites North Korea’s involvement in nuclear weapons programs, comes a decade after the country first gained observer status.
Despite attempts to appear in compliance with international norms to counter sanctions, North Korea ultimately fell short of fulfilling its obligations.
According to South Korea’s Ministry of Foreign Affairs, the APG unanimously decided to revoke North Korea’s observer status during its 26th annual meeting held in Abu Dhabi, United Arab Emirates, on September 24.
The APG, founded in 1997, promotes the implementation of international standards to combat money laundering, terrorist financing, and the financing of weapons proliferation across the Asia-Pacific region. Its 42 members include countries like the U.S., Japan, China, Australia, and South Korea.
North Korea first obtained observer status in 2014, following increasing pressure from international sanctions. In response, the country claimed it would adhere to international financial standards and applied for observer membership in the APG. However, the Ministry of Foreign Affairs noted that North Korea had failed to meet the necessary requirements for observer nations, which led to its expulsion.
The obligations North Korea failed to fulfill included allowing an APG delegation to visit the country, cooperating with the APG Secretariat in drafting progress reports, refraining from using the APG as a platform for political propaganda, and contributing to APG activities and events.
Under APG regulations, observer status can be revoked if a country remains disengaged for more than five years. The APG had warned North Korea during last year’s meeting about the possibility of losing its observer status, but Pyongyang did not respond.
In recent years, North Korea has increasingly relied on illegal cyber activities and cryptocurrency money laundering to fund its nuclear and missile development programs. The country has also grown bolder in evading United Nations sanctions, often backed by traditional allies like Russia and China.
In a statement, South Korea’s Ministry of Foreign Affairs pledged to continue working closely with allied nations to prevent North Korea from acquiring funds for its nuclear and missile programs through cyber theft and money laundering activities.
The ministry also reaffirmed its commitment to supporting international efforts to establish systems and implement standards for combating money laundering, terrorist financing, and the financing of weapons proliferation.
BY HYUNJU PARK, YOUNGNAM KIM [park.hyunju@joongang.co.kr]
