Financial Companies Must Report Suspicious Money Laundering Transactions Within 3 Days... Effective from the 25th

Amendment to Regulations on Reporting and Supervising Specific Financial Transaction Information

[Asia Economy Reporter Park Sun-mi] From now on, financial companies must report to the Financial Intelligence Unit (FIU) within '3 days' from the time they determine the target for suspicious transaction reporting related to virtual assets.

On the 22nd, the Financial Services Commission announced that it has finalized the revision of subordinate regulations necessary for virtual asset service providers to fulfill their anti-money laundering obligations, and that these will be enforced starting from the 25th. The completed revision of the "Regulations on Reporting and Supervision of Specific Financial Transaction Information" specifically stipulates matters delegated by the amended Act on Reporting and Using Specified Financial Transaction Information and its Enforcement Decree related to virtual assets, including clear provisions on the timing when financial companies must report suspicious transactions.

According to the revised supervisory regulations, the method for pricing virtual assets has been established by calculating the Korean won equivalent amount based on the value of virtual assets indicated by the virtual asset service provider at the time of concluding a virtual asset sale or exchange transaction.

Additionally, the exception to the obligation to secure real-name verified deposit and withdrawal accounts is defined as "virtual asset service providers that do not engage in the exchange of virtual assets and money." Virtual assets with high money laundering risks that are difficult to track transaction details (e.g., dark coins) are prohibited from being handled by virtual asset service providers. A reporting form for virtual asset service provider registration has been prepared, and the suspicious transaction report form has been updated to include "virtual assets."

Furthermore, the timing for suspicious transaction reporting by financial companies has been clarified.

Previously, the timing for financial companies to report suspicious transactions was only stipulated as "without delay," which did not specify a clear reporting deadline. However, in this improvement, the person responsible for anti-money laundering reporting at financial companies must report within 3 business days from the time the transaction is determined to be a suspicious financial transaction.

A Financial Services Commission official stated, "The amended Act on Reporting and Using Specified Financial Transaction Information, its Enforcement Decree, and the 'Regulations on Reporting and Supervision of Specific Financial Transaction Information' will be enforced from the 25th of this month," and added, "Accordingly, virtual asset service providers must submit registration forms and supporting documents to the Financial Intelligence Unit starting from the 25th."

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