South Korea’s Financial Intelligence Unit (FIU) has ramped up its drive against money laundering using digital assets.
With the growing number of cryptocurrency transactions, financial authorities are striving to strengthen anti-money laundering (AML) measures against advances in financial crimes.
South Korea’s FIU Launches Stricter Measures
In response, the FIU, a Financial Services Commission organization, convened a top-level meeting on March 5 to address such concerns.
The session, headed by FIU Director Park Kwang, was attended by AML experts from 11 major financial institutions, including the Ministry of the Interior and Safety and the Financial Supervisory Service.
Officials discussed ways to respond to rising threats and detailed major inspection plans for the coming year.
New Money Laundering Methods Raise Concerns
New methods of money laundering—spanning areas like real estate, gambling, and online gaming—have become an increasing concern for global law enforcement agencies trying to keep pace with rapidly evolving illicit financial schemes.
Regulators have particularly called for action on virtual accounts and simplified remittance services, which criminals exploit to launder illicit proceeds.
To combat the issue, the FIU has also formed a Joint Response Team for AML Crimes Against the Public. This group will collaborate with financial institutions and the Financial Supervisory Service to identify vulnerabilities in the system.
It will convene every two months to examine patterns in suspicious transactions related to scams, phishing, multi-level fraud, and illegal gambling.
The FIU has also pledged to improve communication with financial institutions. It plans to issue regular industry alerts on emerging risks and take action against institutions that fail to comply with AML regulations.
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More Emphasis on Robust Inspections
At the meeting, the Financial Supervisory Service announced its AML inspection plan for 2025. Last year, targeted inspections were conducted on card companies and securities firms that had not undergone audits for a long time.
Regulators now plan to focus enforcement efforts on financial businesses with weak AML controls and those previously flagged for non-compliance.
Officials emphasized the need to evolve AML and counter-terrorism financing (CTF) measures to stay ahead of new financial products driven by digital technology. They stressed the importance of regularly updating AML frameworks to address emerging money laundering risks.
Regulators also cautioned financial institutions about stricter enforcement moving forward. Companies that fail to maintain adequate AML systems could face significant penalties. The goal is to ensure that businesses actively monitor and prevent suspicious transactions.
Crypto’s Role in Financial Crimes
A key topic of discussion was the role of cryptocurrencies in modern money laundering schemes. Officials noted that digital assets allow criminals to move money across borders while remaining undetected.
The FIU is now prioritizing the standardization of AML inspection procedures. By streamlining regulations and increasing oversight, the agency aims to combat crypto-related financial crimes.
As digital transactions continue to expand, authorities remain determined to stay ahead in the fight against money laundering.