Law Viewer

Back Home

ACT ON REGULATION AND PUNISHMENT OF CRIMINAL PROCEEDS CONCEALMENT

Act No. 6517, Sep. 27, 2001

Amended by Act No. 7196, Mar. 22, 2004

Act No. 7428, Mar. 31, 2005

Act No. 7625, Jul. 29, 2005

Act No. 7941, Apr. 28, 2006

Act No. 8356, Apr. 11, 2007

Act No. 8635, Aug. 3, 2007

Act No. 8719, Dec. 21, 2007

Act No. 9141, Dec. 19, 2008

Act No. 9488, Mar. 18, 2009

Act No. 10201, Mar. 31, 2010

Act No. 10694, May 19, 2011

Act No. 11002, Aug. 4, 2011

Act No. 11158, Jan. 17, 2012

Act No. 11824, May 28, 2013

Act No. 12710, May 28, 2014

Act No. 12842, Nov. 19, 2014

 Article 1 (Purpose)
The purpose of this Act is to contribute to the maintenance of a sound social order by regulating activities that disguise the acquisition of criminal proceeds related to specific crimes, conceal criminal proceeds for the purpose of encouraging specific crimes, or disguise such assets as legitimately acquired, and by fundamentally eliminating economic factors that encourage specific crimes through prescribing special cases regarding confiscation and collection of equivalent value with regard to criminal proceeds related with specific crimes.
[This Article Wholly Amended by Act No. 10201, Mar. 31, 2010]
 Article 2 (Definitions)
The terms used in this Act shall be defined as follows: <Amended by Act No. 12710, May 28, 2014; Act No. 12842, Nov. 19, 2014>
1. The term "specific crime" means a crime committed for the purpose of acquiring illegal profits as prescribed in the attached Table (hereinafter referred to as "serious crime") and under subparagraph 2 (b) of this Article. In such cases, where a serious crime or a crime prescribed in subparagraph 2 (b) is in the relationship of imaginative concurrence of crimes pursuant to Article 40 of the Criminal Act with other crime, such other crime shall also be included; where an act performed by a foreigner outside the realm of the Republic of Korea constitutes a serious crime or a crime prescribed in subparagraph 2 (b) if it had been committed in the jurisdiction of the Republic of Korea and constitutes a crime pursuant to statutes of the country in which such act was performed, such crime shall be included;
2. The term "criminal proceed" means any of the following items:
(a) Property generated by committing serious crimes or acquired in return for such crimes;
(b) Funds or properties concerning any of the crimes prescribed hereunder:
(i) Crimes prescribed in Article 19 (2) 1 of the Act on the Punishment of Acts of Arranging Sexual Traffic (limited to acts of providing funds, land or buildings despite the acknowledgement that such are offered for sexual traffic from among the acts of arranging sexual traffic);
(ii) Crimes prescribed in Articles 5 (2) and 6 (limited to the attempted offense of Article 5 (2)) of the Punishment of Violences, etc. Act;
3. The term "property derived from criminal proceeds" means any property acquired as the fruit of criminal proceeds, property acquired as compensation for criminal proceed, property acquired as compensation for the two above types of property, and property acquired from the possession or disposition of criminal proceeds;
4. The term "criminal proceeds, etc." means criminal proceeds, property derived from criminal proceeds, and any other property in which either one of the above properties is indistinguishably mixed with other kinds of property;
5. The term "accident causing a loss of multiple human lives" menas an accident which results in a loss of human lives to the extent that requires responses at the level of the State or local governments, such as fire, collapse, explosion, traffic accidents including boating, aircraft, and train accidents, CBR (chemical, biological and radiological) accidents, environmental pollution accidents, and any other accident, being caused by intention or negligence.
[This Article Wholly Amended by Act No. 10201, Mar. 31, 2010]
 Article 3 (Concealment and Disguise of Criminal Proceeds, etc.)
(1) Any of the following persons shall be punished by imprisonment with labor for not more than five years or by a fine not exceeding 30 million won:
1. A person who disguises the acquisition or disposition of criminal proceeds, etc.;
2. A person who disguises the origin of criminal proceeds;
3. A person who conceals criminal proceeds for the purpose of encouraging specific crimes or disguising criminal proceeds as legitimately acquired.
(2) A person who attempts to commit the crime prescribed in paragraph (1) shall be punished.
(3) A person who prepares or conspires for the purpose of committing a crime prescribed in paragraph (1) shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding ten million won.
[This Article Wholly Amended by Act No. 10201, Mar. 31, 2010]
 Article 4 (Giving and Receiving Proceeds, etc. from Crimes)
A person who knowingly accepts the criminal proceeds, etc. shall be punished by imprisonment with labor for not more than three years or a fine not exceeding 20 million won: Provided, That this shall not apply to any person who accepted the criminal proceeds, etc. presented as a performance of an obligations under statutes or any person who received the criminal proceeds, etc. presented as a performance of an obligations under a contract (only limited to a contract under which a creditor is to offer substantial property interest) not knowing that the performance of such obligations would be performed with the criminal proceeds, etc. at the time of signing the contract.
[This Article Wholly Amended by Act No. 10201, Mar. 31, 2010]
 Article 5 (Reports, etc. by Financial Companies, etc.)
(1) Any person who is employed by a financial company, etc. under subparagraph 1 of Article 2 of the Act on Reporting and Using Specified Financial Transaction Information (hereinafter referred to as "financial company, etc.") shall report to the competent law enforcement authorities without delay, notwithstanding the provisions of other statutes, when he/she becomes aware of the fact that properties he/she accepts with respect to the financial transactions referred to in subparagraph 2 of Article 2 of the same Act are criminal proceeds or that the concerned counter-party of the said transaction commits an act that falls under the crimes prescribed in Article 3 of this Act. <Amended by Act No. 10694, May 19, 2011>
(2) No person employed by a financial company, etc. who intends to make a report or has reported as prescribed in paragraph (1) shall disclose the details of the report to the concerned counter-party of the transaction or anyone related to the above party. <Amended by Act No. 10694, May 19, 2011>
(3) Any person who violates the provisions of paragraph (1) or (2) shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding ten million won.
[This Article Wholly Amended by Act No. 10201, Mar. 31, 2010]
 Article 6 (Concurrent Imposition of Imprisonment with Labor and Fine)
Any person who violates the provisions of Articles 3, 4 and 5 (3) may be concurrently imposed with imprisonment with labor and a fine.
[This Article Wholly Amended by Act No. 10201, Mar. 31, 2010]
 Article 7 (Joint Penalty Provisions)
When the representative of a corporation, or an agent or employee of, or any other person employed by, a corporation or an individual commits an offence under Articles 3 through 5 in connection with the business affairs of the corporation or individual, not only shall such offender be punished, but also the corporation or individual shall be punished by a fine under the relevant provisions: Provided, That this shall not apply where such corporation or the individual has not been negligent in giving due attention and supervision concerning the relevant business affairs in order to prevent such offense.
[This Article Wholly Amended by Act No. 10201, Mar. 31, 2010]
 Article 7-2 (Overseas Offenders)
Articles 3 and 4 shall also apply to a Korean who commits a relevant crime outside the jurisdiction of the Republic of Korea.
[This Article Wholly Amended by Act No. 10201, Mar. 31, 2010]
 Article 8 (Confiscation of Criminal Proceeds)
(1) Any of the following properties may be confiscated:
1. Criminal proceeds;
2. Any property derived from criminal proceeds;
3. Criminal proceeds related to the criminal acts prescribed in Article 3 or 4;
4. Any property generated by the criminal acts prescribed in Article 3 or 4, or any property acquired in return for such criminal act;
5. Any property acquired as a fruit of or in compensation for any property prescribed in subparagraph 3 or 4, any property acquired as compensation for these properties, or any other property acquired by the possession or disposition of the property.
(2) Where the property that is subject to confiscation as prescribed in paragraph (1) (hereinafter referred to as "property subject to confiscation") is mixed with properties other than the property subject to confiscation and the said property should be confiscated, the equivalent of the value or quantity of the property subject to confiscation (within the limits of the part related to the mixture) from among the property generated by the mixture (hereinafter referred to as "mixed property") may be confiscated.
(3) Notwithstanding the provisions paragraph (1), where the property prescribed in the subparagraphs of the same paragraph is crime victim property (referring to property acquired from the party injured by a criminal act constituting an offense against property, an offense prescribed in Article 5-2 (1) 1 and (2) 1 of the Act on the Aggravated Punishment, etc. of Specific Crimes or an offense referred to in Articles 650, 652 and 654 of the Debtor Rehabilitation and Bankruptcy Act or to properties acquired as a result of the possession or disposition of the aforementioned properties; hereinafter the same shall apply), such property shall not be subject to confiscation. The same shall apply when any part of properties prescribed in the subparagraphs of paragraph (1) are crime victim property.
[This Article Wholly Amended by Act No. 10201, Mar. 31, 2010]
 Article 9 (Requirements, etc. for Confiscation)
(1) The confiscation prescribed in Article 8 (1) shall be limited to cases where the property subject to confiscation or mixed property does not belong to any person other than a criminal: Provided, That where a person other than a criminal knowingly acquires the mentioned property subject to confiscation or mixed property (excluding cases in which the acquisition of the mentioned property subject to confiscation or mixed property falls under the proviso to Article 4) after such crime has been committed, the mentioned property subject to confiscation or mixed property may be confiscated even though it belongs to a person other than a criminal.
(2) Where any property on which the superficies, hypothec, or any other right exists is to be confiscated pursuant to Article 8 (1), such right shall be left to stand as if any person other than the criminal had acquired such right before the commission of the offense or has unknowingly acquired such right after the commission of the offense.
[This Article Wholly Amended by Act No. 10201, Mar. 31, 2010]
 Article 10 (Collection of Equivalent Value)
(1) Where it is impracticable to confiscate the property under the provisions of Article 8 (1) or where it is deemed inappropriate to confiscate the property in light of the nature of such property, the conditions of its use, the existence of a right of any person other than the parties to the offense to such property, or other circumstances, the monetary equivalent to the value of such property may be collected from any of the parties to the offense.
(2) Where the property prescribed in Article 8 (1) is crime victim property, such collection shall not be made, notwithstanding the provisions of paragraph (1).
[This Article Wholly Amended by Act No. 10201, Mar. 31, 2010]
 Article 10-2 (Special Cases concerning Execution of Collection)
The collection of property subject to confiscation under this Act, which belongs to an individual, corporation, or those with actual control over the corporation through management control, financial relations, or participation in decision making, who have criminal responsibilities for an accident causing a loss of multiple human lives, may be executed against the property subject to confiscation that any person other than a criminal has knowingly acquired as well as the property which has been derived therefrom.
[This Article Newly Inserted by Act No. 12842, Nov. 19, 2014]
 Article 10-3 (Disposition by Prosecutors for Execution of Confiscation and Collection)
(1)  Where it is deemed necessary for the execution of confiscation and collection under this Act, prosecutors may take any of the following dispositions within the necessary minimum range: Provided, That in cases of the dispositions prescribed in subparagraphs 4 and 5 on any person other than a criminal, a warrant referred to in paragraph (3) shall be required:
1. Demand for attendance of interested persons and hearing of their opinions;
2. Demand for a person who owns, possesses, or retains documents or other articles to submit them;
3. Request for the provision of certain information on financial transactions provided for in Article 7 (1) of the Act on Reporting and Using Specified Financial Transaction Information;
4. Request for the provision of taxation information provided for in Article 81-13 of the Framework Act on National Taxes;
5. Request for the provision of information or materials related to the details of financial transactions under Article 4 (1) of the Act on Real Name Financial Transactions and Confidentiality;
6. Demand for public institutions or organizations to reply to an inquiry of facts or to report on necessary matters.
(2) In receipt of a request for the provision of information pursuant to paragraph (1), no institution shall refuse to comply with such request on the basis of other Acts, except in cases having significant impacts on the security of the nation, such as military, diplomacy, and inter-Korean relations.
(3)  Where it is necessary for the execution of confiscation or collection pursuant to paragraph (1), prosecutors may conduct seizure, search, or verification in accordance with a warrant issued by a judge of a district court at their request.
[This Article Newly Inserted by Act No. 12842, Nov. 19, 2014]
 Article 11 (Implementation of Mutual Cooperation)
When a foreign country has requested cooperation in relation to a foreign criminal case against an act falling under specific crimes and the crimes referred to in Articles 3 and 4 of this Act in the execution of a finally-binding adjudication of confiscation or collection of equivalent value or in the preservation of property for the purpose of confiscation or collection of equivalent value, mutual assistance may be provided except in any of the following cases:
1. Where activities related to the crimes that require mutual cooperation take place in the Republic of Korea and such activities are not regarded as specific crimes or the crimes referred to in Articles 3 and 4 of the statutes of the Republic of Korea;
2. Where there is no assurance of the requesting country providing assistance for similar requests made by the Republic of Korea;
[This Article Wholly Amended by Act No. 10201, Mar. 31, 2010]
 Article 12 (Act on Special Cases concerning the Prevention of Illegal Trafficking in Narcotics, etc. to Be Applied mutatis mutandis)
The provisions of Articles 19 through 63, 64 (2) and 65 through 78 of the Act on Special Cases concerning the Prevention of Illegal Trafficking in Narcotics, etc. shall apply mutatis mutandis to the confiscation and collection of equivalent value, and international cooperation pursuant to this Act.
[This Article Wholly Amended by Act No. 10201, Mar. 31, 2010]
 Article 13 (Payment of Rewards)
(1) Where the property subject to confiscation belongs to the National Treasury after being confiscated and collected, the Minister of Justice may pay a reward to a person who reports to competent law enforcement authorities or who is meritorious for confiscation or collection: Provided, That where a public official reports with relation to his/her duty or a person employed by a financial company, etc. reports pursuant to Article 5 (1), such reward may be reduced or may not be paid to such person.
(2) Reporting subject to the payment of a reward under paragraph (1), the scope of meritorious deeds, the criteria, methods, procedures, etc. for the payment of the reward, and other necessary matters shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 11824, May 28, 2013]
ADDENDA
(1) (Enforcement Date) This Act shall enter into force two months after the date of its promulgation.
(2) (Applicability to Activities of Concealing and Accepting Criminal Proceeds, etc.) The provisions of Articles 3 and 4 shall apply to the activities carried out after this Act enters into force with respect to the criminal proceeds acquired before this Act enters into force.
(3) (Amendment to other Acts) Omitted.
ADDENDA <Act No. 7196, Mar. 22, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 7428, Mar. 31, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 7625, Jul. 29, 2005>
(1) (Enforcement Date) This Act shall enter into force one year after the date of its promulgation.
(2) (Applicability to Confiscation and Collection of Equivalent Value with regard to Criminal Proceeds) The previous provisions shall apply to the confiscation and collection of equivalent value with regard to proceeds of crime which arose from the violation of the provisions of Article 74-2 of the Food Sanitation Act (excluding the parts in violation of the provisions of Articles 8 (including cases which apply mutatis mutandis in Article 69) and 22 (1)), Article 43 of the Functional Health Foods Act (limited to cases of the violation of Article 23) and Article 2 (1) of the Act on Special Measures for the Control of Public Health Crimes (limited to cases of violation of Article 6 of the Food Sanitation Act) before this Act enters into force.
ADDENDA <Act No. 7941, Apr. 28, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 11 Omitted.
ADDENDA <Act No. 8356, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 8635, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force one year and six months after the date of its promulgation. (Proviso Omitted)
Articles 2 through 44 Omitted.
ADDENDA <Act No. 8719, Dec. 21, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Act No. 9141, Dec. 19, 2008>
(1) (Enforcement Date) This Act shall enter into force three months after the date of its promulgation.
(2) (Transitional Measures concerning Confiscation and Collection of Equivalent Value with regard to Criminal Proceeds) The previous provisions shall apply to the confiscation and collection of equivalent value with regard to proceeds of crime which arose from the violation of the provisions of Article 136 (1) of the Copyright Act or Article 46 (1) 1 of the Computer Programs Protection Act occurred before this Act enters into force.
ADDENDUM <Act No. 9488. Mar. 18, 2009>
This Act shall enter into force three months after the date of its promulgation.
ADDENDUM <Act No. 10201, Mar. 31, 2010>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 10694, May 19, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 11002, Aug. 4, 2011>
Article 1 (Enforcement Date)
This Act enters into force one year after the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 11158, Jan. 17, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Applicability to Confiscation and Collection)
This Act shall apply, beginning with the case of anyone who commits any offense referred to in Articles 243, 244, 347-2 and 351 (only applicable to any habitual offender as referred to in Article 347-2 of the Criminal Act) of the Criminal Act, Article 74 (1) 2 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc., subparagraph 6 of Article 95 of the Promotion of the Motion Pictures and Video Products Act, subparagraphs 1 and 2 of Article 64 of the Wastes Control Act, Article 93-2 (2) of the Immigration Control Act, or Article 24 (only applicable to any person who helps another person procure the issuance or re-issuance of a passport by wrongful means) or subpararaph 2 of Article 25 of the Passport Act, and whose criminal activity generates criminal proceeds, etc. that are to be confiscated and collected, after this Act enters into force.
ADDENDA <Act No. 11824, May 28, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 13 shall enter into force one year after the date of its promulgation.
Article 2 (Applicability to Payment of Rewards)
The amended provisions of Article 13 shall apply to a person who reports or who is meritorious for confiscation and collection on or after the enforcement date of the aforementioned amended provisions.
Article 3 (Transitional Measures concerning Confiscation and Collection)
The previous provisions shall apply to the confiscation and collection of proceeds of crime which arose from the violation of the provisions of Article 357 (1) and (2) of the Criminal Act, Article 74 (1) 6 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc., subparagraph 3 of Article 44 of the Petroleum and Petroleum Substitute Fuel Business Act, Articles 55 through 57 and subparagraph 5 of Article 58 of the Juvenile Protection Act, Article 15 of the Act on the Protection of Children and Juveniles against Sexual Abuse, or Article 19 (2) 3 of the Act on Registration of Credit Business, etc. and Protection of Finance Users occurred before this Act enters into force.
Article 4 (Transitional Measures concerning Enforcement Date of the Act on Protection of Children and Juveniles from Sexual Abuse)
"Article 15" in the amended provisions of attached Table 31 and Article 3 of the Addenda shall be construed as “Article 12” until June 18, 2013.
ADDENDA <Act No. 12710, May 28, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 12842, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to Execution of Confiscation and Collection)
The amended provisions of subparagraph 5 of Article 2 and Articles 10-2 and 10-3 shall also apply where the procedures for confiscation or collection are underway as at the time this Act enters into force.