The Financial Intelligence Unit (FIU) of the Financial Services Commission in South Korea is strengthening its measures against money laundering related to transnational crimes, following a series of crimes targeting Koreans in Cambodia. FIU is collaborating with financial companies to analyze suspicious transactions to enhance crime detection capabilities and has ordered on-site inspections of financial institution branches located in Southeast Asia.
On the 24th, FIU hosted an anti-money laundering coordination meeting attended by 16 organizations, including the Korea Federation of Banks, Korea Financial Investment Association, Korea Life Insurance Association, General Insurance Association of Korea, and the Digital Asset eXchange Association (DAXA). The meeting focused on reviewing the current status of cross-border responses, primarily involving the banking sector, and discussing countermeasures.
FIU plans to intensify its analysis of suspicious transaction types related to transnational crimes in cooperation with the financial sector. Last week, FIU and the banking industry discussed criteria for extracting suspicious transactions, leading to a comprehensive report by the banking sector. Other financial sectors are also expected to report suspicious transactions in the future. These reports will undergo FIU analysis and be utilized by prosecutors and police for dismantling criminal organizations.
Furthermore, FIU intends to elevate the level of internal controls related to anti-money laundering in financial institutions. The Financial Supervisory Service identified some deficiencies, such as certain banks relying solely on written inspections for their branches/subsidiaries in Southeast Asia. Therefore, FIU is directing a reinforcement of customer verification for suspected transnational crime clients and prioritizing on-site inspections of branches/subsidiaries located in Southeast Asia. It is also planning to thoroughly examine the management of overseas branches/subsidiaries during future anti-money laundering inspections.
FIU also aims to enhance cooperation systems, including information sharing on financial transactions with overseas FIUs. FIU Director Lee Hyung-joo stated, “This coordination meeting marks the first step in responding to transnational crimes,” and emphasized that the agency will continue to strengthen its response to potential future transnational crimes beyond the incidents in Cambodia.