FIU implements unified reporting of cross-border suspicious transactions, strengthens oversight of Southeast Asian branches

Amid recent crimes targeting Koreans in Cambodia, financial authorities have decided to collect unified reports from the financial sector on suspicious transactions related to cross-border crimes.

The Financial Intelligence Unit (FIU) under the Financial Services Commission held a “Committee on Anti-Money Laundering Cooperation” at the Government Seoul Complex on November 24, chaired by FIU Director Lee Hyung-ju, to discuss systems for responding to money laundering linked to cross-border crimes.

The FIU first analyzed the types of suspicious transactions associated with cross-border crimes together with financial institutions and instructed banks to submit unified reports on transactions meeting the criteria. Banks have already started submitting these reports in consultation with the FIU last week, and the reporting system is expected to expand to other financial sectors.

Reported transactions will be analyzed by the FIU and used by investigative agencies to identify criminal organizations. In addition, the FIU will strengthen customer verification procedures and conduct on-site inspections of branches and subsidiaries in Southeast Asia to enhance internal AML (anti-money laundering) controls.

An examination by the Financial Supervisory Service of overseas branches and subsidiaries of banks revealed that some institutions relied solely on written inspections, leaving gaps in internal controls. Accordingly, the FIU plans to focus on the management of overseas branches and subsidiaries in future AML inspections.

Director Lee Hyung-ju stated, “This committee marks the first step in responding to cross-border crimes. We will strengthen our response system not only for the Cambodia case but for all potential future cross-border crimes.”