Financial Crime World

SEOUL TIMES

Strengthening Banking Regulations to Prevent Financial Crime

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Korea has been praised for having a sound legal framework to tackle money laundering and terrorist financing, but it needs to do more to prevent government officials from laundering the proceeds of corruption.

Progress in Combating Money Laundering and Terrorist Financing

According to a recent report by the Financial Action Task Force (FATF) and the Asia-Pacific Group on Money Laundering (APG), Korea’s anti-money laundering and counter-terrorist financing system has been assessed as effective. However, there are still some areas that need improvement.

Areas of Concern

  • Tax crimes: Korea needs to strengthen its framework to address tax crimes.
  • Non-financial businesses and professions: The country is urged to expand its anti-money laundering measures to prevent the laundering of proceeds from all tax crimes.
  • Politically exposed persons (PEPs): Korean authorities are encouraged to make more use of international cooperation tools to go after asset flight and offshore tax crime cases.

Low Terrorist Financing Risk, But Gaps Remain

Korea has been identified as having a low terrorist financing risk. However, the report notes that the country needs to address gaps in its ability to freeze assets under the United Nations sanctions regime.

Recommendations for Improvement

  • Increase transparency in real estate transactions.
  • Enhance cooperation with international partners.
  • Use more international cooperation tools to go after asset flight and offshore tax crime cases.

Private Sector Participation and International Cooperation

The FATF report praises Korea’s effective co-operation with foreign counterparts and its private sector participation in combating financial crimes. However, it notes that the country could do more to prevent accountants, lawyers, real estate agents, and dealers in precious metals and stones from being misused for money laundering or terrorist financing.

New Policy Package to Combat Money Laundering

The South Korean government is expected to unveil a new policy package aimed at combating money laundering and terrorist financing in the coming weeks. The package is expected to include measures such as:

  • Strengthening regulations on non-financial businesses.
  • Increasing transparency in real estate transactions.
  • Enhancing cooperation with international partners.

National Assembly Passes Bill Aimed at Preventing Corruption

In related news, the National Assembly has passed a bill aimed at tightening regulations on PEPs and preventing them from engaging in corrupt activities. The bill is expected to be signed into law by President Moon Jae-in in the coming weeks.

What Do You Think?

The report highlights the importance of effective anti-money laundering measures in preventing financial crime and protecting economies. Korea’s efforts to strengthen its framework are a positive step forward, but more needs to be done to address the areas of concern identified in the report.

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