Dunamu Fined 35.2 Billion Won by FIU for Violating Customer Due Diligence and Other Requirements

Violations Detected in Last Year's AML On-Site Inspection
8.6 Million Cases Including Failure to Report Suspicious Transactions
Dunamu: "We Will Make Further Efforts to Prevent Recurrence"

Dunamu, the operator of Upbit, the nation’s leading virtual asset exchange, has been fined hundreds of billions of won.

Dunamu CI

The Financial Intelligence Unit (FIU) under the Financial Services Commission announced on November 6 that it had imposed a fine of 35.2 billion won on Dunamu for violating customer due diligence (CDD) and other requirements under the Act on Reporting and Using Specified Financial Transaction Information.

This penalty is a result of the FIU’s on-site anti-money laundering (AML) inspection of Dunamu conducted last year. During the inspection, the FIU identified a total of 8.6 million violations of the Act on Reporting and Using Specified Financial Transaction Information. These included 5.3 million violations of customer due diligence obligations, approximately 3.3 million violations of transaction restriction obligations, and 15 cases of failure to report suspicious transactions (STR). In particular, the large-scale breach of customer due diligence, a core anti-money laundering procedure for virtual asset service providers, was considered a serious factor.

Dunamu released a statement pledging to prevent recurrence. The company said, "We respect the FIU's decision to impose a fine," and added, "We have strengthened measures to protect investors and will make further efforts to prevent recurrence." The statement continued, "We will continue to do our best to provide a safe trading environment for our customers."

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