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| Num |
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Subject |
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| 5 |
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What protections will be given to financial institution employees? |
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♦ In order to protect financial institution employees, KoFIU requires financial institutions, not their employees, to report suspicious transactions. Furthermore, reports should be made in the name of financial institutions.
♦ Employees have no obligation to compensate for damages caused while making reports.
♦ Reports on suspicious transactions are not valid as evidence in court, and employees of financial institutions have the right to refuse to testify.
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| 4 |
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What are the consequences for financial institutions if they fail to make a r.. |
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They will be punished by- a fine of 5 million won or less for negligence when they do not report suspicious transactions; or- imprisonment of a year or less and/or a fine of 5 million won or less when they make a false report or disclose such facts to the person who has conducted the financial transactions or to his/her associates.
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| 3 |
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What financial transactions are subject to reporting? |
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♦ Financial institutions should report to KoFIU suspicious financial transactions over 50 million won and/or over US$10,000 in foreign currency if there are reasonable grounds to suspect - the asset received with respect to financial transactions are illegal (defined as serious crimes in the POCA), or that a person conducting a financial transaction is laundering money; or - a person conducting a financial transaction is dividing the money for the purpose of evading disclosure. ♦ Reports can be made on suspicious transactions of less than the threshold amount mentioned above.
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| 2 |
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How can financial institutions contribute in preventing money laundering? |
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♦ Filing reports to KoFIU on transactions suspected of money laundering ♦ Establishing an internal reporting system to facilitate the Suspicious Transactions Reporting (STR) system - Appointing a Reporting Officer, establishing a reporting system among headquarter and branch offices, issuing guidelines and developing training programs for their employees
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| 1 |
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What legislation does Korea have with regard to anti-money laundering? |
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♦ Financial Transaction Reports Act (FTRA, 2001) and Proceeds of Crime Act (POCA, 2001)
- FTRA: stipulates the establishment of a Financial Intelligence Unit (FIU), information exchanges with overseas FIUs, and the requirement that financial institutions establish an internal reporting system
- POCA: criminalizes money laundering activities, enlarges the scope of predicate offenses to include serious crimes as well as illegal drug trafficking, and introduces grounds for confiscating criminal proceeds
♦ Real Name Financial Transactions and Guarantee of Secrecy Act (1997)
- Requires that the implementation of financial transactions be based on real names and that financial institutions identify their customers when conducting transactions
♦ Act on Special Cases Concerning the Prevention of Illegal Trafficking in Narcotics, etc. (1995)
- Establishes provisions for punishing activities of laundering drug crime proceeds and confiscating criminal proceeds
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