Financial Crime World

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Korea’s Anti-Money Laundering and Counter-Terrorist Financing Efforts Receive Overwhelmingly Positive Assessment

Seoul, South Korea - The Financial Action Task Force (FATF) has released a comprehensive report commending Korea for its robust anti-money laundering (AML) and counter-terrorist financing (CFT) measures. The assessment highlights Korea’s strong reporting and supervision requirements, as well as its effective outreach and support mechanisms for non-profit organizations (NPOs).

Key Findings

  • At-risk NPOs operating abroad are subject to strict regulations and ongoing guidance from authorities.
  • Other at-risk NPOs would benefit from proactive engagement.
  • FATF praises Korea’s robust asset tracing and confiscation mechanisms, as well as its efforts to prevent misuse of legal persons.
  • KoFIU is commended for its effective provision of guidance and outreach to supervised sectors.

Areas for Improvement

  • Extending the AML/CFT framework to all designated non-financial businesses and professions (DNFBPs).
  • Expanding the scope of AML/CFT obligations to include domestic politically exposed persons (PEPs) and PEPs of international organizations.
  • Amending laws to align with international standards.

FATF Spokesperson’s Statement

“We are pleased that Korea has made significant progress in strengthening its AML/CFT regime. We urge Korea to continue its efforts to address the remaining vulnerabilities and implement the recommended measures to further enhance its anti-money laundering and counter-terrorist financing defenses.”

Cooperation with Foreign Jurisdictions

  • Korea’s level of cooperation with foreign jurisdictions is generally satisfactory.
  • Room for improvement in sharing beneficial ownership information.

Conclusion

The FATF assessment concludes that Korea has made significant progress in implementing effective AML/CFT measures, but further efforts are needed to address remaining vulnerabilities and ensure the country remains a leader in combating money laundering and terrorist financing.