Money Laundering and Terrorist Financing Regulations in Korea

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Overview of Key Points

Suspicious Transaction Reports (STRs)

Financial institutions and casinos must report transactions that have reasonable grounds to suspect are related to money laundering or terrorist financing.

Currency Transaction Reports (CTRs)

Reporting entities must file CTRs when cash transactions exceed KRW 10 million in a single trading day under the same name.

Filing an STR

The reporting officer reviews the transaction and files the report using a standard form if there are reasonable grounds for ML/TF suspicion.

Dissemination of STRs

The Korea Financial Intelligence Unit (KoFIU) analyzes STRs, obtains additional information, and passes on the reports to law enforcement agencies for further investigation and action.

Scope Limitation

Securities corporations and collective investment corporations that make direct financial transactions with the general public should not be exempted from AML/CFT requirements.

Regulations

Article 4 of the Act in accordance with Article 44(2) of the AML/CFT Regulation
Financial Transaction Report and Supervision Regulation

Enforcement Agencies

The following agencies are responsible for enforcing ML/TF regulations:

Public Prosecutor’s Office
National Police Agency
National Tax Service
Korea Customs Service
Financial Services Commission
National Intelligence Service