Law Viewer

Back Home

ACT ON PROHIBITION AGAINST THE FINANCING OF TERRORISM AND PROLIFERATION OF WEAPONS OF MASS DESTRUCTION

Act No. 12710, May 28, 2014

Amended by Act No. 14116, Mar. 29, 2016

 Article 1 (Purpose)
The purpose of this Act is to implement the International Convention for the Suppression of the Financing of Terrorism and the United Nations Security Council resolution, etc. related to the prevention of the proliferation of weapons of mass destruction by providing for matters necessary to prohibit the financing of terrorism against the public and the proliferation of weapons of mass destruction. <Amended by Act No. 12710, May 28, 2014>
 Article 2 (Definitions)
The terms used in this Act are defined as follows: <Amended by Act No. 10911, Jul. 25, 2011; Act No. 11753, Apr. 5, 2013; Act No. 12710, May 28, 2014; Act No. 14116, Mar. 29, 2016>
1. The term "funds for terrorism against the public (hereinafter referred to as "funds for terrorism")" means funds or assets collected, provided, transported or kept to be used for any of the following acts, for the purposes of interfering with the State, a local government or foreign government (including a foreign local government, or international organization established by a treaty or other international convention) in exercising its rights or forcing it to perform a non-obligatory act, or threatening or endangering the public:
(a) Murder, injuring human body part that may result in death, or illegal arrest, confinement, abduction, enticement or taking hostage;
(b) Any of the following acts related to an aircraft (referring to an aircraft as defined in 1 of Article 2 of the Aviation Safety Act; the same applies hereafter in this item):
(i) Crashing, overturning or destroying an aircraft during flight (referring to flight as defined in subparagraph 1 of Article 2 of the Aviation Security Act; the same applies hereafter in this item), or causing sufficient damage to harm the safety of an aircraft during flight;
(ii) Hijacking, or forcing the operation of an aircraft during flight by assault, intimidation or other means;
(iii) Damaging, or interfering with the operation of aviation facilities related to the operation of an aircraft, so as to harm the safety of an aircraft;
(c) Any of the following acts related to a ship (referring to a ship as defined in the main sentence of subparagraph 1 of Article 2 of the Act on Punishment For Damaging Ships and Sea Structures; the same applies hereafter in this item) or an offshore facility (referring to an offshore facility as defined in subparagraph 5 of Article 2 of the same Act; the same applies hereinafter in this item):
(i) Destroying a ship during its operation (referring to operation as defined in subparagraph 2 of Article 2 of the same Act; the same applies hereafter in this item) or an offshore facility, or causing sufficient damage to harm the safety of a ship during its operation, any offshore facility or freight stowed thereon;
(ii) Hijacking, or forcing the operation of a ship by assault, intimidation or other means;
(iii) Destroying, causing major damage to, or impairing the functions of equipment or facilities related to the operation of a ship, so as to harm the safety of the ship during operation;
(d) Loading or exploding explosives or incendiary arms or devices, which were produced, or are sufficiently powerful to kill, critically injure or cause major damage, or using them in other ways on any of the following vehicles or facilities:
(i) Public vehicles used for transporting humans or goods, such as trains, streetcars, automobiles, etc.;
(ii) Facilities or roads used for vehicle traffic falling under subitem (i), parks, stations, or other public facilities;
(iii) Facilities to supply electricity or gas, drinking water supply for the public, other facilities or facilities for telecommunications provided to, or used by the public;
(iv) Processing, transporting or storing facilities to produce or refine raw materials of petroleum, flammable gas, coal or other fuel, or process them into fuel;
(v) Structures, aircraft or ships, which the public may access, excluding facilities referred to in subitems (i) through (iv);
(e) Any of the following acts related to nuclear materials (referring to nuclear materials as defined in subparagraph 1 of Article 2 of the Act on Measures for the Protection of Nuclear Facilities, etc. and Prevention of Radiation Disasters; hereafter the same applies in this item), radioactive materials (referring to radioactive materials as defined in subparagraph 5 of Article 2 of the Nuclear Safety Act; hereafter the same applies in this item) or nuclear facilities (referring to nuclear facilities as defined in subparagraph 2 of Article 2 of the Act on Measures for the Protection of Nuclear Facilities, etc. and Prevention of Radiation Disasters; hereafter the same applies in this item):
(i) Killing a human, injuring a body part or property, or endangering other public safety by destroying a nuclear reactor;
(ii) Endangering human life or body part by wrongfully using radioactive materials, a nuclear reactor or facility related thereto, a nuclear fuel cycle facility, a radiation generator, etc.;
(iii) Receiving, carrying, possessing, storing, using, transporting, altering, disposing of or dispersing nuclear materials;
(iv) Destroying or damaging nuclear materials or a nuclear facility, or causing such, or interfering with the normal operation of a nuclear facility, resulting in discharge of radioactive material or radiation leak;
2. The term "proliferation of weapons of mass destruction" means manufacturing, acquiring, possessing, developing, transporting, transferring or using any of the following weapons:
(a) A nuclear weapon;
(b) A chemical weapon;
(c) A biological weapon;
(d) Means of transport of weapons falling under any of items (a) through (c);
3. The term "funds for proliferation of weapons of mass destruction" means funds or property for use in the proliferation of weapons of mass destruction;
4. The term "financial transaction" means a financial transaction as defined in subparagraph 2 of Article 2 of the Act on Reporting and Using Specified Financial Transaction Information.
 Article 3 (Application to Foreign Exchange Transactions or Foreigners)
(1) This Act shall also apply to cases falling under any subparagraph of Article 2 (1) of the Foreign Exchange Transactions Act.
(2) This Act shall also apply to any of the following persons:
1. Any foreigner (including any person without citizenship; the same applies hereinafter) who has committed a crime referred to in Article 6 (1) outside the Korean territory to damage a Korean public institution, such as overseas missions, or facilities thereof, or harm Korean citizens;
2. Any foreigner who has committed a crime referred to in Article 6 (1) outside the Korean territory and is in the Korean territory.
 Article 4 (Designation, etc. of Persons Subject to Restrictions on Financial Transactions, etc.)
(1) Where the Financial Services Commission deems that an individual, corporation or organization is related to any act falling under any of the items of subparagraph 1 of Article 2 or the proliferation of weapons of mass destruction (hereinafter referred to as "proliferation of weapons of mass destruction, etc.") and that such individual, corporation or organization falls under any of the following, it may designate the individual, corporation or organization as a person whose acts referred to in paragraph (4) 1 and 2 are restricted (hereinafter referred to as "person subject to restrictions on financial transactions, etc."), and publicly announce such designation: <Amended by Act No. 12710, May 28, 2014>
1. Where restriction on the proliferation of weapons of mass destruction, etc. is necessary to comply with treaties to which Korea is a party, or generally accepted international laws in good faith;
2. Where restriction on the proliferation of weapons of mass destruction, etc. is necessary to especially contribute to international efforts to sustain international peace and security.
(2) Where the Financial Service Commission intends to designate and publicly announce a person subject to restrictions on financial transactions, etc. pursuant to paragraph (1), it shall obtain prior consent from each of the following persons: Provided, That it may designate and publicly announce such person without obtaining prior consent where the proliferation of weapons of mass destruction, etc. is likely to harm life, body or property of people or in emergency or other urgent circumstances that are likely to jeopardize public safety: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12710, May 28, 2014>
1. The Minister of Strategy and Finance;
2. The Minister of Foreign Affairs;
3. The Minister of Justice.
(3)  The Financial Services Commission shall obtain consent from each person mentioned in the subparagraphs of paragraph (2) within 48 hours from the time it designates and publicly announces a person subject to restrictions on financial transactions, etc. without obtaining consent pursuant to the proviso to paragraph (2). Where it fails to obtain such consent, the designation and public announcement loses its effect and the Financial Services Commission shall publish such fact without delay.
(4) Where a person designated and publicly announced as a person subject to restrictions on financial transactions, etc. pursuant to paragraph (1) intends to do any of the following acts (including where he/she becomes the other party to the relevant act in cases falling under subparagraph 2), he/she shall obtain a permit from the Financial Services Commission, as prescribed by Presidential Decree. In such cases, a permit may be applied for by a person whose financial transactions, etc. are restricted or the other party to the relevant act, as prescribed by Presidential Decree:
1. Financial transactions with financial companies, etc. (referring to financial companies, etc. as defined in subparagraph 1 of Article 2 of the Act on Reporting and Using Specified Financial Transaction Information; hereinafter the same shall apply) and the resulting disbursement and receipt of the payment therefor;
2. Transfer, gift, etc. of movable assets, immovable assets, bonds, or other property or property rights, and other acts of disposal, and transfer of occupation thereof or alteration of the original state.
(5)  The Financial Services Commission's authority to grant a permit to acts under paragraph (4) 1 may be entrusted to the Governor of the Bank of Korea under the Bank of Korea Act.
(6) When any person designated and publicly announced as a person subject to restrictions on financial transactions, etc. pursuant to paragraph (1) is no longer related to the proliferation of weapons of mass destruction, etc., the Financial Services Commission shall revoke such designation, and publicly announce it. In such cases, the main sentence of paragraph (2) shall apply mutatis mutandis to the revocation of designation as a person subject to restrictions on financial transactions, etc. <Amended by Act No. 12710, May 28, 2014>
(7) Any person who is dissatisfied with any of the following dispositions may file an objection, as prescribed by Presidential Decree:
1. Designation as a person whose financial transactions, etc. are restricted;
2. Refusal to grant a permit under paragraph (4).
(8) Where necessary to designate a person subject to restrictions on financial transactions, etc., the Financial Services Commission may request related institutions or organizations to render cooperation, such as submission of necessary materials or opinions.
[This Article Wholly Amended by Act No. 11049, Sep. 15, 2011]
 Article 5 (Duties of Financial Companies, etc. and their Employees)
(1) No financial company, etc. (including its employees) shall make a financial transaction nor may disburse or receive the payment therefor, with a person designated and publicly announced as a person subject to restrictions on financial transactions, etc. under Article 4 (1), except where a permit is granted under Article 4 (4). <Amended by Act No. 10694, May 19, 2011; Act No. 11049, Sep. 15, 2011>
(2) When any employee of a financial company, etc. is aware of the fact that assets received from a financial transaction are funds for terrorism or the proliferation of weapons of mass destruction, or the other party to a transaction is making a transaction, or disbursing or receiving the payment therefor without a permit referred to in Article 4 (4) or is committing a crime referred to in Article 6 (1), he/she shall, without delay, report such fact to the competent investigative authority, notwithstanding the provisions of other Acts or subordinate statutes. <Amended by Act No. 10694, May 19, 2011; Act No. 11049, Sep. 15, 2011; Act No. 12710, May 28, 2014>
(3) Where any employee of a financial company, etc. intends to file, or has already filed a report pursuant to paragraph (2), he/she shall not divulge such fact to any other person, including the other party to the relevant financial transaction: Provided, That the same shall not apply where an insider in the financial company, etc. provides such fact, if necessary to prevent the proliferation of weapons of mass destruction. <Amended by Act No. 10694, May 19, 2011; Act No. 12710, May 28, 2014>
 Article 5-2 (Prohibited Acts)
(1) No person shall provide funds or property directly or via a third person to an individual, corporation or organization for the purpose of benefiting such individual, corporation or organization although he/she is aware that the individual, corporation or organization performs or intends to perform an act falling under any of the items of subparagraph 1 of Article 2.
(2) No person shall raise, transport or keep funds or property for the purpose of benefitting an individual, corporation or organization although he/she is aware that such individual, corporation or organization is the individual, corporation or organization under paragraph (1).
(3) No person shall compel or recommend another person to perform an act under paragraph (1) or (2) for the purpose of benefitting an individual, corporation or organization although he/she is aware that such individual, corporation or organization is the individual, corporation or organization under paragraph (1).
[This Article Wholly Amended by Act No. 12710, May 28, 2014]
 Article 6 (Penal Provisions)
(1) Any of the following persons shall be punished by imprisonment with prison labor for not more than ten years or by a fine not exceeding 100 million won: <Amended by Act No. 12710, May 28, 2014>
1. Any person who provides or raises, or transports or keeps funds or property, in violation of Article 5-2 (1) or (2);
2. Any person who compels or recommends another person to perform an act under Article 5-2 (1) or (2), in violation of Article 5-2 (3).
(2) Any of the following persons shall be punished by imprisonment with prison labor for not more than three years or by a fine not exceeding 30 million won: <Amended by Act No. 10694, May 19, 2011; Act No. 11049, Sep. 15, 2011; Act No. 12710, May 28, 2014>
1. Any person subject to restrictions on financial transactions, etc. who performs an act falling under any of the subparagraphs of Article 4 (4) after obtaining permission under Article 4 (4) by deception or other fraudulent means, or other party to the financial transaction;
2. Any person subject to restrictions on financial transactions, etc. who performs an act falling under any subparagraph of Article 4 (4) without obtaining permission under Article 4 (4);
3. The other party to the financial transaction with a person subject to restrictions on financial transactions, etc. who performs an act falling under Article 4 (1) 2 without obtaining permission under paragraph (4) of the aforesaid Article although the other party to the financial transaction is aware of the fact that he/she has been designated as the person subject to restrictions on financial transactions, etc. pursuant to Article 4 (1);
4. Deleted; <by Act No. 12710, May 28, 2014>
5. Any employee of a financial company, etc. who makes a transaction, in violation of Article 5 (1).
(3) Any of the following persons shall be punished by imprisonment with prison labor for not more than two years or by a fine not exceeding ten million won:
1. Any person who fails to file a report to the competent investigative authority, in violation of Article 5 (2);
2. Any person who divulges the filing of a report, in violation of Article 5 (3).
(4) Any would-be criminal referred to in paragraph (1) 1 or paragraph (2) 1 through 3 shall be punished. <Amended by Act No. 12710, May 28, 2014>
(5) Any person who prepares a plot or form a conspiracy for the purpose of committing a crime referred to in paragraph (1) 1 shall be punished by imprisonment for not more than three years or by a fine not exceeding 30 million won. <Newly Inserted by Act No. 12710, May 28, 2014>
(6) Any person who commits a crime falling under paragraphs (1) through (3) may be concurrently punished by imprisonment with prison labor and a fine.
(7) Where the representative of a corporation, or the agent, employee or other servant of a corporation or individual commits any violation referred to in paragraphs (1) through (3) in connection with the affairs of the corporation or the individual, not only shall such violator be punished, but the corporation or the individual shall be also punished by a fine prescribed in the relevant Article: Provided, That this shall not apply where such corporation or individual has not been negligent in giving due attention and supervision regarding the relevant duties to prevent such violation. <Amended by Act No. 10042, Feb. 4, 2010>
 Article 7 (Fines for Negligence)
(1) Any financial company, etc. (limited to cases where its employee violates Article 5 (1) by negligence) that makes a transaction, in violation of paragraph (1) of the same Article, shall be punished by a fine for negligence not exceeding 20 million won. <Amended by Act No. 10694, May 19, 2011>
(2) Fines for negligence referred to in paragraph (1) shall be imposed and collected by the Financial Services Commission, as prescribed by Presidential Decree. <Amended by Act No. 8863, Feb. 29, 2008>
(3) through (5) Deleted. <by Act No. 11049, Sep. 15, 2011>
ADDENDUM
This Act shall enter into force one year after the date of its promulgation.
ADDENDA <Act No. 8863, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 10042, Feb. 4, 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. 10911, Jul. 25, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 11049, Sep. 15, 2011>
This Act shall enter into force one year after the date of its promulgation.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force three months after the date of its promulgation.
(2) Omitted.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 11753, Apr. 5, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 12710, May 28, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Persons Subject to Restrictions on Financial Transactions, etc.)
A person designated and publicly announced as a person subject to restrictions on financial transactions, etc. in relation to the financing of terrorism pursuant to the former provisions of Article 4 (1) before this Act enters into force shall be deemed a person designated and publicly announced as a person subject to restrictions on financial transactions, etc. in relation to the proliferation of weapons of mass destruction, etc. pursuant to the amended provisions of Article 4 (1).
Article 3 (Transitional Measures concerning Penal Provisions)
When applying penal provisions to any act performed before this Act enters into force, the former provisions shall apply thereto.
Article 4 Omitted.
ADDENDA <Act No. 14116, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 55 Omitted.