ENFORCEMENT DECREE OF THE ACT ON PROHIBITION AGAINST THE FINANCING OF TERRORISM
Presidential Decree No. 21115, Nov. 11, 2008
Amended by Presidential Decree No. 24084, Sep. 5, 2012
Presidential Decree No. 25532, Aug. 6, 2014
| Article 2 (Permission for Financial Transactions, etc.) |
| (1) | Any person designated and publicly notified as a person whose financial transactions, etc. are restricted (hereinafter referred to as “person whose financial transactions, etc. are restricted”) under the main sentence of Article 4 (1) of the Act on Prohibition against the Financing of Terrorism (hereinafter referred to as the "Act") or the counterparty (limited to cases referred to in Article 4 (4) 2 of the Act) who intends to engage in an act referred in any subparagraph of Article 4 (4) of the Act (hereinafter referred to as "financial transaction, etc.") shall file, with the Financial Services Commission, an application for permission in the form prescribed and publicly notified by the Financial Services Commission. <Amended by Presidential Decree No. 24084, Sep. 5, 2012> |
| (2) | Upon receipt of an application for permission for financial transaction, etc. under paragraph (1), the Financial Services Commission shall examine the following matters and determine whether to grant the permission within 30 days from receipt of the application, and shall notify the applicant of its decision in writing without delay: Provided, That where it is impossible to make the decision by the prescribed period due to unavoidable reasons, it may extend the period by up to 30 days, counting from the date immediately following the last day of the prescribed period, and shall notify the applicant of the reasons for extension and the extended period, etc. in detail in writing: |
| 1. | Whether the relevant financial transaction, etc. require permission; |
| 2. | Reasons for and the amount of the relevant financial transaction, etc.; |
| 3. | Details of the transaction or act triggering the relevant financial transaction, etc. |
| (3) | Where a person designated and publicly notified as a person whose financial transactions, etc. are restricted falls under any of the following, the Financial Services Commission may permit his/her financial transaction, etc.: <Amended by Presidential Decree No. 24084, Sep. 5, 2012> |
| 1. | Where financial expenditure needs to be permitted for minimum cost of living required for maintenance of basic living, such as food, clothing and shelter, for medical expenses or in view of humanitarianism; |
| 2. | Where financial expenditure needs to be permitted for performance of obligations to a third party who is unrelated to financing of funds for the purpose of terrorism (hereinafter referred to as "funds for terrorism"); |
| 3. | Where the relevant financial transaction, etc. otherwise need to be permitted and it is unrelated to financing of funds for terrorism. |
| (4) | In the case of paragraph (3) 3, if the person designated and publicly notified as a person whose financial transactions, etc. are restricted, is under sanctions imposed by the Al-Qaida and Taliban Sanctions Committee of the United Nations Security Council, the Financial Services Commission shall notify the Committee and obtain its approval for the financial transaction, etc. before granting permission for the financial transaction, etc. under paragraph (3). In such cases, the period expended to obtain approval of the Committee shall not be included in calculation of the period prescribed under paragraph (2). <Newly Inserted by Presidential Decree No. 24084, Sep. 5, 2012> |
| (5) | The Financial Services Commission may grant the permission under paragraphs (2) and (3) for specific types and scope of financial transaction, etc. that it designates. |
| (6) | Where an application filed in accordance with paragraph (1) contains any errors or omissions, the Financial Services Commission may request correction of the application. In such cases, the period expended for correction of the application shall not be included in calculation of the period prescribed under paragraph (2). |
| Article 3 (Objection to Designation as a Person Whose Financial Transactions, etc. Are Restricted) |
| (1) | Any person who has an objection to designation as a person whose financial transactions, etc. are restricted under Article 4 (1) of the Act, may file an objection with the Financial Services Commission within 30 days from the date on which he/she becomes aware of such designation, and any person who has an objection to a decision to reject permission for financial transaction, etc. under Article 4 (4) of the Act, may file an objection with the Financial Services Commission within 30 days from the date of such decision. <Amended by Presidential Decree No. 24084, Sep. 5, 2012> |
| (2) | Any person who intends to file an objection in accordance with paragraph (1), shall submit a document stating the following matters to the Financial Services Commission: <Amended by Presidential Decree No. 24084, Sep. 5, 2012> |
| 1. | Name, resident registration number (referring to the passport number or alien registration number, in cases of a foreigner), address (or the name, address of office or place of business and name of representative, in cases of a corporation or an organization) and contact information of the person filing for the objection; |
| 2. | Details of the designation as a person whose financial transactions, etc. are restricted or details of the rejection of permission for financial transaction, etc. against which the objection is filed; |
| 3. | Purpose of and reasons for the objection; |
| 4. | Date of the designation as a person whose financial transactions, etc. are restricted or the rejection of permission for financial transaction, etc. |
| (3) | The Financial Services Commission shall make a decision on the objection within seven days from the date on which it receives the objection and notify the applicant of the result in writing without delay: Provided, That where it is impossible to make a decision by the prescribed period due to unavoidable reasons, it may extend the period by up to seven days, counting from the date immediately following the last day of such period, and shall notify the applicant of the reasons for extension and the extended period, etc. in detail in writing. |
| (4) | Where the Financial Services Commission decides to accept an objection, it shall immediately rectify the designation as a person whose financial transactions, etc. are restricted or the rejection of permission for financial transaction, etc. and shall notify the applicant of such decision without delay. <Amended by Presidential Decree No. 24084, Sep. 5, 2012> |
| (5) | Where the Financial Services Commission decides to reject or dismiss an objection, it shall clearly state the grounds for such decision and methods and procedures for filing an objection thereto and shall inform the applicant of the fact that he/she has a right to file an administrative appeal or an administrative lawsuit, along with the notice of the result under paragraph (3). |
| (6) | The Financial Services Commission shall record and retain the status of processing objections in the record book of objections processed. |
| Article 3-2 (Management of Personally Identifiable Information) |
Where it is inevitable for performing affairs concerning the designation as a person subject to restrictions on financial transactions, etc., the permission for financial transactions, etc. with financial companies, etc., the raising of an objection, and other similar acts under Article 4 of the Act, the Financial Services Commission (including a person entrusted with the authority of the Financial Services Commission pursuant to Article 4 (5) of the Act) may manage data containing resident registration numbers, passport numbers, or alien registration numbers referred to in subparagraph 1, 2, or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act. [This Article Newly Inserted by Presidential Decree No. 25532, Aug. 6, 2014]
| Article 4 (Imposition of Administrative Fines) |
| (1) | Guidelines for the imposition of an administrative fine under Article 7 (1) of the Act shall be as specified in the attached Table. |
| (2) | The Financial Services Commission may abate or aggravate an administrative fine by not more than 1/2 of the applicable amount specified in the attached Table, taking into consideration the gravity of offense, frequency of offenses, motive and consequences of offense, and other relevant facts: Provided, That the aggravated amount may not exceed the maximum limit of the amount applicable to the administrative fine under Article 7 (1) of the Act. |
ADDENDUM
This Decree shall enter into force on December 22, 2008.
ADDENDUM <Presidential Decree No. 24084, Sep. 5, 2012>
This Decree shall enter into force on September 16, 2012.
ADDENDUM <Presidential Decree No. 25532, Aug. 6, 2014>
This Decree shall enter into force on August 7, 2014.