Key Documents

Korea Amends Financial Transaction Reports Act

May 17, 2010

South Korea Releases Updated Version of Proceeds of Crime Act

March 31, 2010

South Korea Strengthens Counter Terrorist-Financing Measures

February 4, 2010

South Korea Updates Regulations Implementing Financial Transaction Reports Act

July 30, 2010

Important Facts

The U.S. State Department labels South Korea as a jurisdiction of concern. South Korea has an advanced economy that large industrial companies dominate. It is not an offshore banking center. Although organized crime does not have a large profile, Korean criminal groups have ties with counterparts in the Japanese Yakuza, Chinese triads and Nigerian gangs. Most money laundering in South Korea is associated with domestic criminals, official corruption and ethnic Koreans living abroad. South Korean officials have uncovered numerous underground banking systems that South Korean nationals, North Korean defectors and foreign national workers from China and Southeast Asian and Middle Eastern countries use. Reports indicate that North Korean defectors living in South Korea are sending more than $10 million annually to family members in North Korea through illegal banking systems between South Korea and China. Gambling is legal but highly regulated and limited to non-citizens. The Korea Financial Intelligence Unit (KoFIU) is the primary agency responsible for implementing actions to stop money laundering and to combat the financing of terrorism. Presently, the KoFIU is concentrating on corporate and political fraud, but has started to look at organized crimes, including narcotics-related money laundering.
KYC Covered Entities: Banks, exchange houses, stock brokerages, casinos, insurance companies, merchant banks, mutual savings banks, finance companies, credit unions, credit cooperatives, trust companies, and securities companies
STR Covered Entities: Banks, exchange houses, stock brokerages, casinos, insurance companies, merchant banks, mutual savings banks, finance companies, credit unions, credit cooperatives, trust companies, and securities companies
Enhanced Due Diligence Procedures for PEPs: Foreign: No; Domestic: No
Money Laundering Criminal Prosecutions/Convictions: Prosecutions: N/A; Convictions: N/A

Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical	Effectiveness
Compliant : 12	High : 0
Largely Compliant : 20	Substantial : 5
Partially Compliant : 8	Moderate : 6
Non-Compliant : 0	Low : 0

BASEL i

Rank : 30/110

Score : 4.63/10

TRANSPARENCY INTERNATIONAL i

Rank : 33/179

Score : 61/100

Tax Justice Network i

Rank : 21/133

Score : 62/100

South Korea

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