🌎 South Korea Bolsters Crypto Anti-Money Laundering Measures

South Korea Strengthens Anti-Money Laundering Measures for Crypto Transactions

South Korea’s Financial Intelligence Unit (FIU) is bolstering its efforts to combat anti-money laundering (AML) activities, particularly in the realm of cryptocurrency transactions. The FIU recently unveiled a series of strategies to prevent money laundering at the AML Inspection Trustee Council, as reported by local media.

Joint Response Team to Combat AML Crimes

The FIU plans to establish a joint response team in collaboration with the Financial Supervisory Service (FSS) and financial institutions. This team will be responsible for monitoring transactions, analyzing suspicious patterns, and addressing AML-related crimes such as voice phishing, multi-level fraud, and drug-related financial crimes. The team will operate bi-monthly under the FIU and present reports on recent AML-linked activities.

Enhanced Monitoring and Warnings

Authorities will issue warnings to certain industry players identified as vulnerable to AML crimes, based on media reports and industry requests. The FIU will also actively review new types of money laundering methods, including the misuse of crypto trading accounts and remittance services.

Expanded Monitoring Reach

The FSS will expand its monitoring to include finance firms that have been investigated for suspicious AML activity in the past. Companies previously flagged for weak AML management will also be under scrutiny. Last year, the Korean Customs Service inspected 77 companies, including high-risk money exchange offices and online and automated money exchanges, revealing 45 companies guilty of violations such as failing to report suspiciously large transactions.

Boosting Cooperation and Evaluation

The FSS will evaluate the cooperation between consumer protection departments and AML departments in South Korean firms to enhance their ability to detect and prevent financial crimes. This move aims to encompass new emerging methods used to launder money, specifically the flow of funds through digital asset transactions in the crypto space.

Formal Joint Investigation Unit for Crypto Crimes

On February 28, the South Korean government upgraded a temporary task force into a formal joint investigation unit to deal with crypto-related crimes and fraud cases. This move is in response to the increasing number of crypto crimes in South Korea in recent years.