South Korea

Last Updated: 13/01/2016
 


CENTRAL AUTHORITY FOR REPORTING.

The Korea Financial Intelligence Unit (KoFIU)


OTHER ANTI-MONEY LAUNDERING REGULATOR(S).

Other anti-money laundering regulators in South Korea include


ARE LAWYERS COVERED BY ANTI-MONEY LAUNDERING LEGISLATION?

Lawyers are not covered by anti-money laundering legislation.

However, on October 12, 2009, the FSC stated in its report to the National Assembly that it would pursue improvements to domestic laws, such as having professionals in the non-finance industry covered by anti-money laundering legislation, in compliance with the FATF’s recommendations and the accepted international standard.

However there have been no further steps in relevant legislation so far.


LIST THE LAWS REGARDING ANTI-MONEY LAUNDERING, INDICATING WHICH LAWS ARE APPLICABLE TO LAWYERS.

Themain and general legislation regarding Anti-Money Laundering are as follows:

The following acts are also related to anti-money laundering:

However, none of the above contain provisions specifically applicable to lawyers.


ARE VISITING LAWYERS SUBJECT TO LOCAL LAWS REGARDING ANTI-MONEY LAUNDERING, AND, IF SO, TO WHAT EXTENT?

There is no anti-money laundering legislation that is specifically applicable to lawyers, so a visiting lawyer shall not be subject to Korean anti-money laundering as his/her status as a lawyer.


LIST ANY MONEY LAUNDERING GUIDANCE FOR LAWYERS (FOR EXAMPLE, LAW SOCIETY OR BAR ASSOCIATION GUIDELINES) CURRENTLY IN PLACE.

Neither the Korean Bar Association Code of Ethics nor other law society guidelines deal with money laundering.


IS THE LAW SOCIETY/BAR ASSOCIATION INVOLVED IN SUPERVISING OR ENFORCING COMPLIANCE WITH ANTI-MONEY LAUNDERING REGULATIONS?

The Korean Bar Association is not involved in supervising compliance of AML regulations.


DESCRIBE CLIENT DUE DILIGENCE REQUIREMENTS, INCLUDING WHEN IT MUST BE UNDERTAKEN BY LAWYERS.

There are no client due diligence requirements for lawyers.


DOES YOUR COUNTRY FOLLOW A RISK-BASED APPROACH TO CLIENT DUE DILIGENCE BY LAWYERS?

No. As there currently are no client due diligence requirements for lawyers, there is no risk-based approach to client due diligence.


ARE THERE ENHANCED DUE DILIGENCE MEASURES FOR CERTAIN TYPES OF CLIENTS, FOR EXAMPLE, POLITICALLY EXPOSED PERSONS?

Not applicable 


ARE THERE SIMPLIFIED DUE DILIGENCE MEASURES FOR CERTAIN TYPES OF CLIENTS, FOR EXAMPLE, LISTED COMPANIES?

Not applicable


ARE LAWYERS PERMITTED TO RELY ON THIRD PARTY DUE DILIGENCE? IF YES, PLEASE DESCRIBE.

Not applicable


WHEN IS A LAWYER UNDER AN OBLIGATION TO REPORT SUSPICIOUS TRANSACTIONS?

A lawyer does not have any statutory duty to report a suspicious transaction.

The legal obligations to report suspicious transactions under on the Report on Specific Financial Transaction Information and Utilization Act and the Regulation and Punishment of Concealment of Gains from Crimes Act apply to financial institutions and non-financial institutions listed in the Acts, not lawyers.


DOES ATTORNEY/CLIENT PRIVILEGE AND/OR DUTIES OF CONFIDENTIALITY PROVIDE A DEFENCE OR PARTIAL/TOTAL EXCEPTION TO THE REQUIREMENT TO REPORT SUSPICIOUS TRANSACTIONS?

There are no requirements to report suspicious transactions for lawyers, so attorney/ client privilege and/ or duties of confidentiality do not provide an exception for lawyers.


DOES LOCAL LAW PROVIDE ANY CRIMINAL AND/OR CIVIL INDEMNITY TO A LAWYER WHO HAS REPORTED A SUSPICIOUS TRANSACTION?

There is no client due diligence requirements for lawyers, so there is no criminal or civil indemnity.


ONCE A SUSPICIOUS TRANSACTION REPORT HAS BEEN FILED, IS A LAWYER ALLOWED TO PROCEED WITH THE LEGAL ADVICE/TRANSACTION, AND, IF SO, MUST CONSENT FROM AUTHORITIES BE OBTAINED FIRST?

There are no specific laws or regulations relating to this issue.


IS THERE A TIPPING-OFF PROHIBITION? IF YES, PLEASE DESCRIBE.

Not applicable


DESCRIBE ANY RESTRICTIONS ON ACCEPTING A NEW CLIENT.

Not applicable


ARE THERE ONGOING MONITORING REQUIREMENTS FOR EXISTING CLIENTS? IF YES, PLEASE DESCRIBE.

There are no ongoing monitoring requirements that apply to lawyers.


DESCRIBE ANY OTHER WAYS IN WHICH LAWYERS ARE AFFECTED BY ANTI-MONEY LAUNDERING LEGISLATION.

There are no specific AML requirements imposed on lawyers by anti-money laundering legislation in Korea. There is no client due diligence requirements or obligations to report suspicious transactions for lawyers.

Therefore, lawyers are not affected by any specific anti-money laundering legislation, and just like all other citizens, lawyers are generally subject to law that prohibits conducting money laundering acts for any illegal purpose.


HAVE LAWYERS IN YOUR JURISDICTION BEEN IMPLICATED IN MONEY LAUNDERING, INCLUDING ANY TYPE OF COMPLAINT, ARREST OR PROSECUTION?

There have not been cases regarding a lawyer’s failure to follow anti-money laundering requirements.


HAS THE FINANCIAL ACTION TASK FORCE (FATF) CONDUCTED A MUTUAL EVALUATION OF THIS COUNTRY, AND, IF SO, WHAT WERE THE FINDINGS CONCERNING LAWYERS’ COMPLIANCE WITH THE FATF 40+9 RECOMMENDATIONS?

In June 2014, the FATF released an 8th Follow Up Report on the Mutual Evaluation of Korea. The report states that in Korea ‘with the exception of casinos, no AML/CFT obligations have been applied to DNFBP sectors.’ 

http://www.fatf-gafi.org/media/fatf/documents/reports/mer/FUR-Korea-2014.pdf





Information provided by:

Seung Hoon Choi/ Kyoung Jun Cho/ Wonyoung Karyn Yu

Lee & Ko
11th Floor, Hanjin Main Building
118, Namdaemunno 2-ga, Jung-gu
Seoul, Korea 100-770

Main: 82.2.772.4000
Fax: 82.2.772.4001

E-mail: mail@leeko.com/ seunghoon.choi@leeko.com
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