FSS Reviews Year-End and New Year Consumer Crime Response System... Bank Sector CCOs Convened

Participation in Preventing Illegal Private Loans, Urging Prevention of Large-Scale Voice Phishing Losses
Emphasizing Effectiveness Enhancement through Strengthened Linkage of 'Anti-Money Laundering and Livelihood Crime' Response

The Financial Supervisory Service (FSS) convened Consumer Protection Officers (CCOs) from the banking sector to review the response system against financial crimes that may become lax during the year-end and New Year period, and to check the response systems for illegal private loans, voice phishing, and anti-money laundering (AML).

Financial Supervisory Service, Yeouido, Seoul. Photo by Younghan Heo younghan@

On the 18th, the FSS announced that it held a meeting chaired by the Deputy Governor in charge of livelihood finance with the Korea Federation of Banks and CCOs from 19 banks to review the response system against livelihood infringement crimes. The FSS requested cooperation from the banking sector to participate in preventing illegal private loan damages, prevent large-scale voice phishing damages, and strengthen the linkage of AML and livelihood infringement crime responses.

The FSS emphasized that, as the government is making all-out efforts centered on the 'Government-wide Task Force (TF) for Eradicating Illegal Private Loans' to eradicate illegal private loans that plunder the property of ordinary people through high interest rates and illegal debt collection and destroy their daily lives, the banking sector should actively promote prevention of illegal private loan damages and victim support systems through online and offline channels.

Deputy Governor Kim Seong-wook stressed, "The banking sector should minimize the exposure of vulnerable low-income groups to illegal private loans by actively providing funds to companies under the excellent low-income finance lender system."

Requests were also made to strengthen responses to block large-scale voice phishing damages. There have been numerous cases where victims of voice phishing, deceived by fraud groups impersonating financial companies, the FSS, and the police simultaneously, withdraw cash and checks and hand them over to collectors.

Deputy Governor Kim said, "When handling large cash or check withdrawals at branches, it is necessary to carefully observe customers' behavior and psychology, conduct active inquiries, and promptly report suspected voice phishing cases to the police to strengthen responses." He added, "Please actively promote the loan transaction safe blocking service to prevent monetary fraud damages in advance."

He also added the need to strengthen the linkage between anti-money laundering and responses to livelihood infringement crimes to enhance effectiveness. The FSS confirmed in recent inspections that the banking sector has been passive in utilizing financial crime information such as fraud-use accounts in AML tasks like customer risk assessment. The voluntary compensation system for non-face-to-face financial accidents implemented in the banking sector this year will be expanded to the secondary financial sector starting next year.

Deputy Governor Kim emphasized, "It is necessary to utilize information sharing between AML and consumer protection departments for customer risk assessment and suspicious transaction reporting." He added, "Monitoring of suspicious transactions related to drugs, gambling, and financial crimes should be strengthened to prevent bank accounts from being used for crimes, and active reporting to the Financial Intelligence Unit is required."

Meanwhile, he also called for strengthening risk management to protect financial consumers' rights amid recent political instability. Deputy Governor Kim said, "There is a concern that incomplete sales of financial products and financial accidents may become rampant in business sites taking advantage of the chaotic atmosphere caused by martial law declarations and lifts, impeachment resolutions, etc." He urged, "Please conduct company-wide risk management to prevent acts that infringe on financial consumers' rights or damage the trust in the financial industry."

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