South Korea: Financial Intelligence Unit and Financial Supervisory Service to Inspect Commercial Banks' AML Compliance

On January 8, 2018 the Korea Financial Intelligence Unit (KoFIU) and the Financial Supervisory Service (FSS) began joint inspections at six commercial banks that offer trading accounts to cryptocurrency exchanges in South Korea.

The inspections are aimed at checking the compliance of transactions with cryptocurrency exchanges with regard to anti-money laundering (AML) and know your customer (KYC) obligations.

Regulators are concerned that cryptocurrencies can be used for money laundering purposes. With virtual accounts making it harder for customer identification, banks are required to assume a greater responsibility as gatekeepers to prevent cryptocurrencies being used for illegal activities.

To continue reading please log in or request a demo to speak to a member of the team.