North Korea has lost its observer status in a regional group that fights money laundering. This decision was announced on Monday by the South Korean foreign ministry. The reason for this action is North Korea’s lack of involvement and its failure to fulfill its responsibilities to the group.
The decision was made unanimously at the 26th general assembly of the Asia Pacific Group on Money Laundering (APG), which convened last Tuesday in the United Arab Emirates.
The South Korean ministry released a statement explaining the outcome.
Established in 1997, the APG is an intergovernmental body dedicated to enforcing international standards against money laundering and combatting terrorism financing, including preventing the spread of weapons of mass destruction.
The group currently consists of 42 member states, including key global powers such as the United States, Japan, China, and South Korea, which joined in 1998.
North Korea gained observer status in the APG in July 2014. However, it was warned by the group that its continued lack of engagement would lead to disqualification. The North failed to meet even the minimal requirements to retain its status, prompting the members to endorse the revocation.
To maintain its observer status, a country is required to permit visits from APG delegations, facilitate information exchange, and cooperate with the group in publishing regular reports on the nation’s anti-money laundering efforts. The APG found that North Korea had not participated in the group’s activities for six consecutive years, nor had it responded to any of the group’s attempts to establish contact.
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In response, North Korea issued a statement through its state-run Chosun Central News Agency on October 3rd, protesting the APG’s decision. The regime claimed the APG had become a “puppet group” serving the interests of the United States and suggested the move was a result of America’s continued “hostile policy” towards the country.