Changes in FSC’s Financial Policies for 2013
– Accounting Practices and Anti money-laundering
Happy new year, everyone!
Did everyone make resolutions for this year? As we have New Year’s resolutions, Financial Services Commission (FSC) is also introducing some policy changes effective in 2013. At the big picture, there are about a half dozen of changes in financial policies under three major categories; protection of financial consumers, enhancement of stability in financial transactions, and the others. In this article, I would explicitly focus on ‘the others’ category. I believe that this category contains changes most relevant to our foreign readers. There are namely two changes; 1) requirement of filing consolidated financial statements and 2) enhanced sanctions on money-laundering activities. Let me explain these changes to you in more details below.
1) Requirement of filing consolidated financial statements
From 2013, regardless of total assets amount, all the corporations are to submit consolidated financial statements. The comparison between before and after this change is summarized in the table below.
* This rule applies for 2013-14 accounting years, and afterwards the deadline would be changed to 45 days after a quarter/half-year period ended.
2) Enhanced Sanctions on Anti-Money Laundering
From March 22, 2013, there will be some changes under Act on Reporting and Use of Certain Financial Transaction Information, for the purpose of enhancing validity and effectiveness of anti-money laundering measures.
Accordingly, new types of sanctions would be introduced, along with subdivisions of sanctions that are currently in place. The details are specified in the following table.
It is hoped that these new policies will improve accounting practices and anti-money laundering efforts in South Korea. Let us see how new developments are made in Korea this year. And also I hope your New Year’s resolution comes true.