South Korea’s Financial Intelligence Unit (FIU) has announced new anti-money laundering (AML) restrictions in response to the increasing number of crypto-related crimes in the country. The FIU revealed its strategies to prevent money laundering at the AML Inspection Trustee Council on March 5, as reported by local media Wow TV.
One of the key measures introduced by the FIU is the establishment of a joint response team in collaboration with the Financial Supervisory Service and financial institutions. This team will be responsible for monitoring transactions and analyzing suspicious transaction patterns associated with various types of financial crimes, including voice phishing, multi-level fraud, gambling, and drug-related activities.
The FIU also plans to issue warnings to industry players identified as vulnerable to AML crimes based on media reports and industry requests. Additionally, the agency will actively review new money laundering methods, such as the use of crypto trading accounts and the misuse of remittance services to facilitate illicit activities.
The Financial Supervisory Service has also pledged to expand its monitoring efforts to include finance firms that have been investigated for suspicious AML activity. The agency will focus on companies previously flagged for weak AML management in prior assessments.
Last year, the Korean Customs Service conducted inspections on 77 companies, including high-risk money exchange offices and online money exchanges, revealing that 45 companies had violated regulations by failing to report suspiciously large transactions. In response, the FSS plans to evaluate the cooperation between consumer protection and AML departments in South Korean firms to enhance their ability to detect and prevent financial crimes.
In a move to combat the rising number of crypto crimes, the South Korean government upgraded a temporary task force into a formal joint investigation unit dedicated to handling crypto-related crimes and fraud cases. This unit was established to address the growing concerns surrounding illicit activities in the crypto space.
Overall, these new AML restrictions aim to strengthen the monitoring of crypto transactions and prevent money laundering through innovative methods. By collaborating with financial institutions and regulatory bodies, South Korea’s FIU is taking proactive steps to combat financial crimes and protect the integrity of the country’s financial system.