South Korea

Last Updated: 14/05/2008 (Anti-money laundering legislation not applicable to lawyers)

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South Korea has developed an anti-money laundering system. It enacted Financial Transaction Reports Act (FTRA) and Proceeds of Crime Act (PCA) in September 2001 to combat anti-money laundering and the financing of terrorism. Both acts were amended in 2005.

The FTRA stipulates the establishment of the South Korean Financial Investigative Unit (KoFIU), a specialised national agency responsible for receiving, analysing and disseminating information on suspicious transactions.

Money laundering reporting requirements apply to financial institutions such as commercial banks, exchange houses, stock brokerages, casinos, insurance companies, merchant banks, mutual savings, finance companies, credit unions, credit cooperatives, trust companies, securities companies, insurance companies, credit insurance corporations, and exchange houses.

“Intermediaries such as lawyers, accountants, or broker/dealers are not covered." 1

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Sources

“International Narcotics Control Strategy Report –2003”, released by the Bureau for International Narcotics and Law Enforcement Affairs, 1 March, 2004.

Eun-Young Park, “Jurisdiction Update: South Korea,” 14 May 2008, www.complinet.com.

1. Marcus Simpson, "South Korean 'spy agency' claims Pyongyang has enacted AML law, 22 February 2007, www.complinet.com.