Financial Supervisory Service Imposes Unprecedented Sanctions on Employee of Bank of China Seoul Branch for Violating Large Cash Transaction Reporting Rules

Lee Bok-hyun, Governor of the Financial Supervisory Service, is attending the emergency macroeconomic financial meeting held at the Bankers' Hall in Jung-gu, Seoul on the 16th. / Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Kim Hyung-min] The Financial Supervisory Service (FSS) has exceptionally sanctioned an employee of the Bank of China Seoul branch for violating the obligation to report large cash transactions.

According to the financial sector on the 18th, the FSS's Anti-Money Laundering Office recently issued a warning to one employee of the Bank of China Seoul branch who violated the obligation to report large cash transactions during an inspection. Financial institutions must report to the head of the Financial Intelligence Unit within 30 days when paying or receiving cash transactions exceeding 10 million KRW with a financial transaction counterparty. However, the employee at the Bank of China Seoul branch was found to have delayed reporting cash transactions exceeding 10 million KRW to the head of the Financial Intelligence Unit last year, thus failing to properly fulfill the obligation to report large cash transactions. Sanctions against Chinese banks operating in South Korea are rare.

The Bank of China is a representative commercial bank in China with a market capitalization of 933.2 billion yuan (approximately 180 trillion KRW) as of the end of 2020.

Meanwhile, with the recent appointment of Lee Bok-hyun, a former prosecutor, as the head of the FSS, there are expectations that regulations on unfair trading activities such as money laundering will be intensified.

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