FEB 5, 2024
Korean banks to bolster AML measures for cryptocurrency exchanges
South Korean banks will soon have to be prepared with adequate anti-money laundering (AML) measures when issuing real-name bank accounts to cryptocurrency exchanges, according to a report by local media outlet News1.
This requirement is part of the proposed amendment to the enforcement decree of the Financial Transaction Reports Act, with the Korean Financial Services Commission (FSC) issuing a legislative notice about it today. The FSC will be gathering feedback until March 4, prior to the implementation.
Adequate staff and physical facilities
The new amendment requires banks supporting virtual asset service providers (VASPs) to employ adequate staff and establish and uphold physical infrastructure to combat money laundering and terrorist financing. Through this revised legislation, the FSC aims for banks to be equipped with the necessary resources to manage risks linked to the provision of real-name bank accounts to VASPs.
With the issuance of real-name bank accounts, banks will face ongoing cautionary duties. The FSC plans to offer clearer guidelines to help banks decide whether to continue providing such accounts to VASPs.
Intelligence platform focused on financial security
Moreover, the FSC plans to create a specialized intelligence platform focused on financial security. This platform is aimed at enabling proactive responses to cyberattacks and supporting financial institutions in the agile management of risks associated with emerging technologies.