8th Anti Money Laundering Day

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November 28 was the 8th anniversary of “Anti Money Laundering Day” which also is the foundation day of the Financial Intelligence Unit (FIU), a FSC-affiliated authority responsible for the prevention of money laundering and terrorist financing.

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Since the establishment, the day was celebrated every year since 2007 to raise people’s awareness and interest on combating money laundering. This year, a commemoration event was held with the presence of more than 220 figures from the financial authorities, institutions, and academic circle.

“Thanks to outstanding IT infrastructure, we could successfully implement necessary systems for fighting money laundering and we are providing assistance to developing nations to do the same. Such efforts are awarded by being appointed as the chair country of the FATF beginning from next year” FSC Chairman Shin Je-Yoon said during his congratulatory speech praising everyone’s hard work and dedication. He also raised necessity for strengthening and expanding the range of supervision to the non-banking sector as well to effectively respond to evolving money laundering cries.

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Kyongnam Bank received a presidential award for its excellent contribution in prevention of money laundering. Meritz Fire & Marine Insurance was awarded Prime Minister’s commendation, and 30 employees of Shinhan and Korea Exchange Bank was granted FSC Chairman’s award.

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‘Council for IT-Finance Convergence’ established

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Council for IT-Finance Convergence kicked off on November 10 to speed up the process of providing advanced financial services by converging internet technology and finance.

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The council is chaired by Director General of FSC’s Banking & Insurance Bureau and FSS’s Chief Officer for IT and Financial Data Protection. The council is comprised of 20 experts from 16 institutions of bank, asset management and credit card companies, electronic financial service, IT, and data protection industries.

In the first meeting on Monday, the members agreed to improve the current rules and regulations, select and concentrate on specific financial services that have potential to create huge synergy, and strengthen consumer data protection measures.

The council will meet regularly once in every two weeks to discuss ways to achieve shared growth between IT and financial sector and create new service industry by effectively converging the two.

FSC autumn sports day

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9 a.m., November 1, Hanwha Life Insurance Training Institute located in Yong-in was crowded with excited FSC employees overwhelmed by the huge event ahead of them just about to kick off. They were all dressed in sports wears and uniforms of their designated teams. All FSC employees gathered at one place to cheer up and take some time to get recharged on a beautiful autumn day.

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Men and women of the FSC assembled by the team they belong in the indoor stadium. Hot stew and snacks were served before the beginning to warm the everyone’s stomach. After short warm up exercises, the main events kicked off with Chairman Shin Je-Yoon and Vice Chairman Jeong Chan-woo’s brief thank you speech to the employees.

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FSC employees were divided into 6 teams according to bureaus and divisions. Each team competed for winning trophies in soccer, volleyball, dodge ball, and relay race. Those who didn’t play in the games danced and shouted for victory to cheer their team. All soccer and volley ball matches were exiting enough to make everyone think that they are watching professional league games since all players volunteerly went through intensive training before and after work everyday for the last few weeks.

2014 한마음 연찬회_0023All soccer matches were neck and neck. Winners and losers were decided by penalty kicks. Capital Markets Bureau and One Team (Spokesperson’s Office and Consumer Finance & Protection Bureau united) met at the final round. Both teams fought their guts out but the match ended at 3 all after overtime. Again, the champion was about to be ruled by 5 penalty kicks. Cheering squads of each team yelled for joy and disappointment everytime kickers made their kicks. PK scores were tied again at 3 all and only one kicks per team remained. One Team succeeded the last kick first. Then, One Team’s goalkeeper threw his body to the ball and made a miraculous save. Thanks to the unbelievable save resembling Casillas, One Team could lift up the winning trophy.

2014 한마음 연찬회_0187At the same time, volley ball matches were hot in the indoor stadium. Unlike professional volley ball games with 6 players, 9 players including one female made a team. No one spared themselves. Every player dived and threw themselves to receive fierce spikes. After exiting and breathtaking matches, Financial Policy Bureau and One Team, again, met for the championship game. Most people expected Financial Policy Bureau would win because they had height advantages over One Team. Such expectation was about to come true until Financial Policy Bureau went ahead by 9 to 3 of a 15-point game after winning the first set. It was then when miracle happened, again. One Team players showed their super power and turned the game around with final set score of 2-1.

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One Team’s one-sided games continued. The team overwhelmed other rivals in relay race and other competitions. As a result, One Team won soccer and volley ball trophies and overall championship trophy. Sweeping all trophies was unprecedented throughout the history of the FSC. The historic event ended with FSC Chairman’s closing statements.

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Despite worries about rain forecast, FSC employees, families, and reporters could enjoy a typical sunny and cool autumn weather. It was a meaningful day that everyone could forget about work for a day and come around all together. In the closing statement Chairman Shin almost showed his tears fully charged with emotions when he reminisced the past two years of both wonderful and hard times in the FSC.

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First Meeting of the Committee for Financial Innovation

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For the last one year and so, the government has been concentrating its efforts in setting the financial industry’s vision and establishing related system to coop with the changing economic structure and conditions. Moreover, the FSC devised and announced comprehensive plan to overhaul financial regulatory system.

However, the financial industry still has long way to go to completely abolish its old and outdated practices. Necessary funds are still not effectively channeled to those in need such as startup entrepreneurs and CEOs of SMEs.

In order to narrow the gap between the real economy and the current conditions of the financial industry, the government and financial sector must work together to come up with tangible outcomes that can be actually be felt by those at the frontline of the economy.

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The first meeting of the Committee for Financial Innovation was held on September 16, to discuss ways to improve unreasonable financial practices, thereby achieve sustainable growth of the financial industry.

During his opening speech, FSC Chairman Shin Je-Yoon mentioned that technology finance must take deep root in the financial system as soon as possible. To such backdrop, according to Chairman Shin, the government will start reviewing each bank’s efforts to promote technology finance in October. Various incentives will be granted to those contributing in the realization of creative finance, said Mr. Shin.

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“Second, venture capital should be further facilitated in order to encourage active investment in creative ideas. We must create a healthy cycle of investing and reinvesting in innovative ideas” Chairman Shin added.

“Third, we must abolish outdated financial practices. Unreasonable inspections and sanctions are the main culprits of hampering financial innovation. Therefore, our priority is to improve the current supervisory system. We will ban financial regulators from imposing excessive sanctions on the employees of financial institutions. We will encourage financial firms to improve unfair internal practices.”

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Chairman Shin said that he believes that the government should open its ears wider to the voices of financial consumers.

Based on firm belief that the answer to the government’s tasks lie in the actual business fields, Chairman Shin will visit local employment center in Seosan and venture companies located in Gyeonggi Province to share opinions with financial consumers about what financial regulations need to be improved.

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“I am confident that the financial sector will push our economy to the next level. I would like to ask for the commissioners of the Committee for Financial Innovation gathered today to actively back the government to realize our goal,” Chairman Shin said in closing.

KoFIU & SAFIU sign MOU on money laundering prevention

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Korea Financial Intelligence Unit(KoFIU) and the Saudi Arabian counterpart signed a MOU for cooperation on anti-money laundering on August 11. Upon signing of the agreement, KoFIU will share and pass on its experiences and know-hows about establishing system for prevention of money laundering. Six officials including Nasser Al-omair, head of Saudi Arabia FIU participated in a two-day workshop held in Korea to learn financial intelligence analysis methods, financial IT system, and anti-money laundering techniques.

KoFIU will further develop a program to share its knowledge and experience on money laundering prevention with countries of the Asia-Pacific region.

FSC official English website newly opened

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The FSC newly opened its official English website(www.fsc.go.kr/eng). The renovated website features new contents such as policy highlights, photo news, and press releases of related entities with user-friendly interface. More useful and interesting contents will be uploaded soon. Take your time and check out major financial policy issues and pictures of various FSC events!!

Plan to improve license system for financial investment business

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The FSC announced its plan to ease regulations on license system for financial investment to streamline the current overly subdivided business units and simplify license process.

Financial investment businesses will be required to apply for a business license for only when it first enters the sector. Once a financial institution is granted a regulatory approval for business, the company will be allowed to add new business within the same sector simply through add-on registration, without any additional procedure for approval.

Moreover, regulations regarding majority shareholders will be also revised. Under the current Financial Investment Business and Capital Markets Act, a person who was not able to participate in business management due to spinoff is classified as a “specially related person” which unreasonably restricts the person from becoming a major shareholder. After revision, such person will no longer be classified as a “specially related person”.

The current regulations related to institutional sanctions will be mended as well. Eased regulations will be applied to financial investment firms which are issued with sanctions equal to or stronger than institutional warning in order to give additional opportunities for them to secure their foot in the market.

Given that it would take time for the revision to the FSCMA to allow add-on registration system, a fast-track procedure will be introduced temporarily in order to expedite regulatory approval process for added-on businesses. Such is expected to significantly reduce time for regulatory approval from the current 7 to 8 months to 3 to 4 months.

Measures that can be taken without law revision will go into force in September.

 

click to read press release ->http://www.fsc.go.kr/downManager?bbsid=BBS0048&no=91626