Weekly e-Briefing 7. Korea’s AML/CFT Policy Direction
2010/02/24 2 Comments
Korea’s AML/CFT Policy Direction
Today no country is free from the threats of money laundering and terrorist financing. Countries with weak or inefficient countermeasures attract illicit funds into their financial systems and provide platform for such criminals and terrorists. In order to protect integrity of the Korean financial system, after liberalization of foreign exchange transactions, Korean government has established the Korea Financial Intelligence Unit (KoFIU) in 2001 within the Financial Services Commission to stand against terrorism and to take effective measures against all of money laundering. Recently KoFIU has been admitted to the Financial Action Task Force, the leading international organization for anti-money-laundering and counter-financing of terrorism.
Last week, at the FATF Plenary held in Abu Dhabi, there was reporting on how Korea has been implementing its Action Plan since it became a member of the FATF in October last year. And, for low-risk financial transactions, it is expected to see deregulation in anti-money laundering rules as to allow more accessibility to financial services for those at the poverty level. Also, the FSAP, which stands for the Financial Sector Assessment Program run by IMF and IBRD, is planning to include the FATF anti-money laundering standards as part of its essential components.
Internationally, Korea is playing an increasing role in global efforts to prevent money laundering and terrorist financing, and ultimately, to promote the concept of integrity within the financial market. As the chair of the G-20 Summit this Fall in Seoul, Korea is committed to playing a constructive role in ensuring a high-level of compliance among all nations with the global requirement for elevated financial transparency. Please visit http://www.fsc.go.kr/eng/index.jsp for more details.