Regulatory Alerts2017-11-28
Added · Updated
Proposed Amendments to the Enforcement Decree of the Act on Reporting and Use of Certain Financial Transaction Information
The Financial Services Commission proposes repealing regulatory provisions that exempt financial firms from certain anti-money laundering internal control requirements, thereby subjecting them to stricter compliance standards. Financial firms engaging in transactions with corporate clients must verify the identity of the representing person by confirming specific personal information, including the national resident registration card number. Additionally, the record maintenance period for transactions involving electronic fund transfers and foreign exchange transactions is shortened from 25 years to five years. Public comments on these proposed amendments are accepted until January 8, 2018.
Laws and Regulations Announcement Amendments Proposed to the Enforcement Decree of the Act on Reporting and Use of Certain Financial Transaction Information Agency: Financial Services Commission Proposed amendment: Enforcement Decree of the Act on Reporting and Use of Certain Financial Transaction Information FSC Notice number: 2017-313 Announcement date: November 28, 2017 Summary: The Financial Services Commission proposed amendments to the Enforcement Decree of the Act on Reporting and Use of Certain Financial Transaction Information. The amendments raise the compliance standards and requirements for financial firms’ antimoney laundering (AML) internal controls and provide for greater consistency between domestic rules and rules set by the Financial Action Task Force (FATF), the intergovernmental body established in 1989 to fight money laundering and terrorist financing. Key provisions: Regulatory provisions granting financial firms exemptions from compliance with certain AML internal control requirements are to be repealed, thus subjecting financial firms to stricter AML compliance requirements. Financial firms engaging in a financial transaction with a corporate client are to establish the identity of the person representing the corporate client by verifying specific personal information including the national resident registration card number. The 25-year record maintenance period for transactions involving electronic fund transfers and foreign exchange transactions is to be shortened to five years. Comment Period Public comments for the proposed amendments must be submitted to the Financial Services Commission (telephone: 02-2100-1725; email: entro21@korea.kr; fax: 02-2100-1738) by January 8, 2018.