"Financial Transactions to Be Restricted for Corporations Owned by Individuals Related to Terrorism"

If a corporation is owned by a person related to terrorism who holds more than 50% of its shares or exercises de facto influence, its financial transactions and related activities will be restricted.

The Financial Services Commission announced that, with the revised Anti-Terrorism Financing Act set to take effect next year, a draft amendment to the enforcement decree-defining the specific scope of corporations directly or indirectly owned or controlled by individuals related to terrorism-was approved at the Cabinet meeting on August 18.

The existing Anti-Terrorism Financing Act has restricted financial transactions and the disposal of property rights by individuals related to terrorism. Additionally, the amendment to the Act passed in January further restricts financial transactions and the disposal of property rights for corporations that are directly or indirectly owned or controlled by such individuals, in order to prevent the concealment of terrorist assets.

The Financial Services Commission defined corporations owned by persons related to terrorism as those in which such individuals, either alone or together with other persons related to terrorism, contribute or own 50% or more of the shares or equity.

Cases where a person related to terrorism is deemed to control a corporation were specifically outlined as follows: when the individual, either alone or in agreement or contract with other shareholders, appoints a majority of representatives or executives; when the individual, either alone or in agreement or contract with other shareholders, exercises a majority of voting rights; or when the individual, through contracts or articles of incorporation with the corporation, exerts influence over the appointment or dismissal of executives, or over the management of funds.

The amended enforcement decree will go into effect on January 22 of next year, following presidential approval and promulgation procedures.

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