Anti Money Laundry and Financial Intelligence Unit (7)

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Ways Forward To Seek Further Advancement

 

Hello our readers. Sorry to tell you, but this is the last post of the feature, ‘Anti Money Laundry and Financial Intelligence Unit.’

The last 6 posts were about ‘what FIU has been doing so far since its establishment in 2001. It seems obvious that FIU has made an effort for systemic advancement for anti laundering measures. Then, what are the ways forward from now on? This post surely tells you what FIU is looking forward.

 

 

One of the anti money laundering measures is ‘Suspicious Transaction Report’, as explained in the previous post. Until now, there has been a standard amount subject to suspicious transaction report. If the amount is below the standard, a suspicious transaction cannot be reported to FIU. Currently, the standard is KRW 10 million.

However, international society asks to abolish such a standard, for more advanced regulatory system. Hence, FIU made an amendment to Act on Reporting and Use of Certain Financial Transaction Information, which is currently going through a legal assessment by Ministry of Government Legislation. This amendment reflects financial companies’ current practices reporting suspicious transactions regardless of the amount. Those practices are representing that our awareness of anti money laundries has been improving.

 

Money laundry is often used as a way to finance terrorist activities. This is on-going concern across countries, making international society institutionalize prohibition against financing terrorism. Responding to this, FIU will institutionalize definitions of terrorist and terrorist organization under the Act on Prohibition against the Financing of Terrorism. New regulation will enable FIU to criminalize terrorist-related activities, which has a paramount significance as a member of FATF.

 

Anti money laundering measures demand continuous monitoring, as laundries are getting involved with even more tactful ways using hidden channels of money flows. FIU, based on its experience over the last decade, should work for the ways forward to seek further advancement.

 

Regards,
Frank

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