FSS: "Anti-Money Laundering Measures Insufficient in Electronic Financial Industry"

Meeting with Industry CEOs Held
Announcement of Key Measures for Next Year

The Financial Supervisory Service (FSS) held a meeting with CEOs of electronic financial service providers such as Toss and KakaoPay, urging them to improve their anti-money laundering (AML) systems.

On the 22nd, the FSS held a meeting with major electronic financial service CEOs at its headquarters in Yeouido, Yeongdeungpo-gu, Seoul, and conveyed requests related to AML.

Previously, based on the results of a self-inspection on AML conducted from September 27 to October 26 targeting medium and large electronic financial service providers, the FSS determined that while basic systems such as customer verification and suspicious transaction reporting were established, the actual operational practices were insufficient. In particular, the FSS identified weaknesses in the internal control systems, including the establishment of detailed AML procedures by electronic financial companies. The agency emphasized the need for management to increase their interest and understanding.

Kim Jun-hwan, Deputy Governor of the Financial Supervisory Service, stated, "Financial transactions using electronic financial service providers such as simple payment and remittance have expanded throughout society recently, increasing the risk of money laundering. However, the overall industry level remains insufficient. Next year, we will raise awareness of AML systems across the industry through business briefings and inspections targeting electronic financial service providers, focusing on improving vulnerabilities so that companies can enhance their own AML capabilities."

He also added, "Companies evaluated as insufficient in the inspection will be closely monitored for improvements going forward. We urge management to take an active interest and responsibly implement effective improvement measures."

Going forward, the FSS plans to closely manage the AML vulnerabilities of electronic financial service providers rated as insufficient to ensure practical improvements, and will continue inspections throughout next year to establish effective internal control systems across the industry.

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