Korea, a New Member of FATF

In order to effectively deal with Money-Laundering, the FATF was established attendant upon the consensus at G7 Summit in 1989. Furthermore, the consolidated role of the FATF was required to strengthen the transparency of global financial market and cut down on the risk of Money Laundering at the last G20 Summit. That is to say, international society agreed on sorting out and seeking the sanction against Non-Cooperative Jurisdiction, who does not implement the global standard regarding Terrorist-Financing and distract the transparency of the financial market.  

The FATF consists of 35 countries (33 countries and 2 international organizations) with OECD (Organization for Economic Cooperation and Development) members as the core. However, among 30 OECD members, 4 countries including Poland, Hungary, the Czech Republic, and Slovakia are not joining into the FATF. Nevertheless, as we can see, the FATF includes most of the countries around the globe which promise to actively support and participate in the global efforts on AML. To be brief,  it reflects the international society recognizes the significance of the role of Anti-Money Laundering.   

 

the FATF carries out the 3 main roles. The first is Anti-Money Laundering and the creation of the blocking global network. The second is the study on the method of Money Laundering and development of its countermeasure. At last, there is the enactment and legislation of the related international regulations and institution.   

 

Korea joining the FATF, Why is it significant?  

Korea has been admitted as a full member into the FATF(Financial Action Task Fore) during the FATF plenary meeting in Paris from October 14 to 16,2009. This has several significant implications. Above all, there is the increasing necessity of Anti-Money Laundering system. The four major reasons for Korea in joining the FATF are (1) The improvement of the credibility of financial institution, (2) The efficient regulation against a criminal act, (3) The prevention of side effect triggered by liberalization measure of foreign exchange, (4) The affirmative participation to the global effort for counter-terrorist financing. It will also bring positive aftermath to the improvement of overseas credibility and the global authorization acquisition concerning domestic factors including institution. It will not merely contribute to the enlargement of the role of Korea within the FATF as the chair country of the next G20 summit on November, 2010, but strengthen the global representative status within Asia.  Due to the fact that the issue of money laundering or terrorist financing was one of the main agenda of the last G20 summit. Korea needs to actively participate in not merely Asia-Pacific related activities, but the broader global efforts as the chair of the next G20 summit in 2010 as mentioned previously. Furthermore, Korea is required to enlarge the participation in the FATF working group. Eventually, the diverse efforts and its role for AML/counter-terrorist financing should not be restricted within the scope of counter-terrorism and crime.

Advertisements

About FSC Korea
The Financial Services Commission has been established for the purpose of protecting the integration of Korea’s financial markets by promoting sound credit system and fair business practices. To this end, the FSC serves as a consolidated policy making body for all matters pertaining to supervision of the financial industry as a whole. To raise the efficiency, the posts of the FSC Chairman and the FSS Governor were separated on March 2008 for clear distinction between policy-making and execution of financial market supervision

17 Responses to Korea, a New Member of FATF

  1. MiGueLito says:

    It’s the great article I think! …. ㅠㅡㅠ

    ^____________________________^ㅋ

  2. Pingback: FSC Weekly e-Briefing / 3.Risk Assessment of Banks Mortgage Loans | Bad Credit Mortgages

  3. Hello, it looks like your site is up and coming in the

    • miguelitodh says:

      You’re right! Our blog has been more active than before. 🙂
      All of this is by virtue of various visitors like you.^____^

  4. I think that that was really interesting. Good post!

  5. Simon Lowell says:

    I think that that was really interesting. Good post!

    • miguelitodh says:

      I think this topic is really interesting and important issue as well.
      Anyway, thanks for your comment on the article. 🙂

  6. Emery Matier says:

    I enjoyed your posts, the fact that your site is a little bit different makes it so very interesting, I get fed up of seeing the same old boring recycled stuff all of the time.

    • miguelitodh says:

      I’m really glad that you enjoyed our posts.
      Like your comment, we have always endeavored to step up to various readers and visitors as a new look.^____^

      Anyway, thanks for your comment, sincerely.

  7. seo says:

    Hello, great comment. I look forward to your next post. Thanks, Joanna

    • miguelitodh says:

      Thanks for your comment, sincerely.^____^ㅋ
      Also, I’m supposed to post next article at early date.

  8. Dave Koehne says:

    This is an interesting point, i think there are a lot of things to discuss in the future…

    • miguelitodh says:

      Thanks for your comment, sincerely. 🙂

      In addition to this article, I think through this blog, you can read, think, and discuss more than ever.^____^

  9. Thanks in advance for your kind and generous input.

    • miguelitodh says:

      It’s my pleasure.^____^ㅋ
      I’ll persevere in my efforts to develope our blog more and more.

  10. miguelitodh says:

    It’s my pleasure.^____^ㅋ
    I’ll persevere in my efforts to develope our blog more and more.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: