1. Are there any sanctions imposed against South Korea?
There are no sanctions imposed on South Korea.
2. What are the regulated institutions in South Korea?
There are casinos, insurance companies, mutual savings banks, finance companies, credit cooperatives, credit unions, trust companies, merchant banks, and securities companiesThere are casinos, insurance companies, mutual savings banks, finance companies, credit cooperatives, credit unions, trust companies, merchant banks, and securities companies
3. Who are the local regulatory authorities in South Korea, and which government authorities are responsible for the investigation and prosecuting money laundering criminal offenses?
The Korea Financial Intelligence Unit(KoFIU), Financial Services Commission(FSC), The Ministry of Strategy and Finance(MOSF), Bank of Korea(BOK), National Tax Service(NTC), National Police Agency(NPA), Korea Customs Service(KCS), Public Prosecutors' Office(PPO)
4. What is the status of South Korea's FATF?
South Korea is not AML Deficient List. According to the latest Mutual Assessment Report (2020) conducted in South Korea, 12 of the FATF 40 recommendations were considered largely compliant for 20 of them.
5. Which global regulations South Korea have to comply with?
International Standard Organization, International Electrotechnical Commission
6. What are the AML obligations of the businesses in South Korea?
In Korea, financial institutions are responsible for Customer Due Diligence(CDD). They impose AML obligations on fintech companies, including CDD requirements. According to aml requirements, fintech companies may have to stop simple payment services.
7. What are the local AML laws and regulations in South Korea?
Act on Reporting and Using Specified Financial Transaction Information, Act on the Prohibition Against the Financing of Terrorism, Act on Regulation and Punishment of Criminal Proceeds Concealment, Act on Special Cases Concerning the Prevention of Illegal Trafficking in Narcotics, Anti-Money Laundering (AML) Regulation / Combating the Financing of Terrorism (CFT)Regulation, Real Name Financial Transactions, and Privacy Law Foreign Currency Transactions Act, Criminal Law, Criminal Procedure Law.
8. What are the penalties for failure to comply with Anti-Money Laundering law in South Korea?
Domestic and international bribery is prohibited by the Corporate Tax Law and the Personal Income Tax Law. The Tax Evaders Penalty Act (PTEA) imposes criminal liability on the person or company that cites bribery as an eligible business expense for tax evasion.
9. What are the contact details of the relevant regulators in South Korea?
The Korea Financial Intelligence Unit (KoFIU)
Address: 209, Sejong-daero, Jongno-gu, Seoul 03171, Korea
T: +82 2 2100 1734
Financial Supervisory Service (FSS)
Address: 38 Yeoui-Daero Youngdeungpo-Gu Seoul 07321
10. Are violations of anti-money laundering obligations also subject to criminal sanctions in South Korea?
Yes, The Anti-Money Laundering (AML) Regulation / Anti-Terrorism Financing (CFT) Regulation, Real Name Financial Transactions and Privacy Law, and Criminal Court Law include regulations for the prevention of money laundering.
11. What can oblige institutions do to prevent money laundering and to comply with AML regulations in South Korea?
There are regulations in South Korea that Fintech companies must manage their Customer Due Diligence processes. Organizations that cannot control the process well may face risks that will endanger their future. Sanction Scanner helps businesses better manage their AML, Know Your Customer(KYC), and Customer Due Diligence (CDD) processes. Protect your company from legal penalties with the AML compliance solutions we have developed to speed up your company's AML compliance processes. For more information Contact Us or Request Demo.