South Korean FIU unveils more AML restrictions in light of crypto crimes

The South Korea’s financial intelligence unit wishes to strengthen the anti-money laundering measures, in particular by improving the means of monitoring cryptographic transactions.

On March 5, the CRF revealed a number of strategies to prevent money laundering in AML Inspection trustee council, according to local media WOW TV. The CRF plans to launch a joint response team to manage LMA crimes that threaten public livelihoods, in collaboration with the financial supervision service and financial institutions.

The team will be responsible for monitoring transactions and analyzing suspicious transaction models linked to vocal phishing, several -level fraud, games of chance and financial crimes related to drugs. The joint response team will operate the CRF bimensually to present reports on reduced LMA reduced activities.

In addition, the authorities will issue warnings to certain industry players selected according to the vulnerability of LMA crimes, media reports and industry demands.

According to the report, the CRF promises to actively examine new types of money laundering methods, including the use of crypto trading accounts and the abusive use of payment services to facilitate money laundering.

Thanks to these measures, the agency aims to include the new emerging methods used to whiten money, in particular the flow of funds thanks to transactions of digital assets in the cryptographic space.

In addition, the financial supervision service said that it would expand its surveillance range to include financial companies that have recently been surveyed for a suspicious LMA activity. They will also aim at companies previously reported for low management of LMAs in previous assessments.

According to the Korean Customs Service, inspections were carried out by up to 77 companies, which included high -risk fundraising offices as well as online and automated exchanges last year. The investigation revealed that 45 companies were guilty of violations such as not reporting suspicious transactions.

The FSS also announced its intention to assess cooperation between the Department of Consumer Protection and the LMA departments in South Korean Companies to strengthen their capacity to detect and prevent financial crimes from occurring.

On February 28, the South Korean government improved A temporary working group in a formal joint investigation unit which specifically deals with crimes and cases of fraud linked to the crypto. The unit has been formed due to the growing number of cryptographic crimes in South Korea in recent years.