South Korea plans to conduct audits of virtual asset exchanges to eliminate non-compliant platforms. Authorities are considering creating an improved system for suspending suspicious transactions. This will quickly prevent the concealment of illegal funds at all stages of the investigation. The Financial Intelligence Unit (FIU) released the “2024 Work Plan” on Monday after collecting expert opinions through consultation with the Policy Advisory Committee, Yonhap News reported.
The FIU plans to block attempts by non-compliant virtual asset exchanges to enter the Korean won market and strengthen reporting and anti-money laundering (AML) checks. To assist in this, the FIU intends to enlist the help of lawyers and accountants. An initial review will be carried out in the first half of 2024 to assess money laundering risks and market performance. A more detailed review will be carried out in the second half of the year. Virtual asset operators that do not meet the requirements will be blocked.
The division plans to extend the review to large shareholders. It would also expand the scope of the law and allow for the disqualification of those with a history of repeat offenders. In addition, social credit criteria will be taken into account. It is also proposed to create a Financial Action Task Force (FATF) to quickly identify crimes and suppress suspicious transactions during pre-trial investigations.
Image: Finance Magnates