FIU Launches Next-Generation Anti-Money Laundering System Integrated with Machine Learning

[Asia Economy Reporter Kim Hyo-jin] The Financial Intelligence Unit (FIU) under the Financial Services Commission announced that it has completed the establishment of the next-generation Anti-Money Laundering (AML) system and began its operation on the 17th.

The FIU AML system analyzes financial transaction information related to money laundering crimes reported by financial companies and provides it to law enforcement agencies such as the prosecution and police. It was first launched in 2002.

Since then, while the volume of reported information has rapidly increased, the system has become outdated, raising concerns about difficulties in processing information efficiently and in a timely manner.

Accordingly, the FIU has been carrying out the next-generation system construction project since May last year, investing approximately 20 billion KRW.

In the next-generation system, the suspicious transaction report (STR) reporting rate has increased to about three times the previous level, and the processing capacity has increased more than fivefold through multi-processing methods.

The capability for screening and analyzing money laundering crimes has also been strengthened. Machine learning technology has been incorporated to respond to increasingly sophisticated and advanced money laundering methods.

Additionally, the types of administrative data required for screening and analysis have been expanded, and by directly linking with administrative agency systems, the data acquisition period, which previously took more than 10 days, has been shortened to within one day.

All computer equipment has been installed at the National Information Resources Service, an agency under the Ministry of the Interior and Safety. Unlike in the past when the FIU used outsourced personnel to build and manage the system independently, it is explained that information security has been enhanced by having the management agency’s staff operate it directly.

The FIU plans to operate an emergency response system to ensure the early stabilization of the next-generation system.

Furthermore, it intends to promptly reflect related matters such as amendments to the Act on Reporting and Using Specified Financial Transaction Information in the system and effectively respond to money laundering crimes using new transaction methods such as virtual assets.

This content was produced with the assistance of AI translation services.