• Evolving threats: Proliferation networks exploit weaknesses in financial systems, using intermediaries, shell companies, virtual assets, and maritime channels to obscure transactions and evade sanctions.
• Major actors: The Democratic People’s Republic of Korea remains a significant threat, generating billions through cyberattacks, illicit trade, and overseas IT workers.
• Typologies of evasion:
  • Use of intermediaries and front companies
  • Obscuring beneficial ownership information
  • Exploiting virtual assets and shipping sectors

• Enhanced compliance: Both public and private sectors must strengthen technical compliance and enforcement of financial sanctions.
• Risk indicators: Authorities and institutions should use risk indicators, such as mismatched IP addresses or unusual shipping routes, to detect suspicious activities.
• Public-private collaboration: Improved information sharing and partnerships are essential to counter these sophisticated schemes.

The report underscores the urgent need for a coordinated global response to mitigate the risks of proliferation financing and sanctions evasion.

For more details the report can be found here and FATF’s news release here.