ACT ON REPORTING AND USING SPECIFIED FINANCIAL TRANSACTION INFORMATION
Act No. 6516, Sep. 27, 2001
Amended by Act No. 7311, Dec. 31, 2004
Act No. 7336, Jan. 17, 2005
Act No. 8635, Aug. 3, 2007
Act No. 8704, Dec. 21, 2007
Act No. 8863, Feb. 29, 2008
Act No. 9617, Apr. 1, 2009
Act No. 9919, Jan. 1, 2010
Act No. 10043, Feb. 4, 2010
Act No. 10303, May 17, 2010
Act No. 10522, Mar. 31, 2011
Act No. 10694, May 19, 2011
Act No. 11411, Mar. 21, 2012
Act No. 11546, Dec. 11, 2012
Act No. 12103, Aug. 13, 2013
Act No. 12710, May 28, 2014
Act No. 12716, May 28, 2014
Act No. 14071, Mar. 3, 2016
Act No. 14133, Mar. 29, 2016
Act No. 14242, May 29, 2016
Act No. 14839, Jul. 26, 2017
Act No. 16293, Jan. 15, 2019
The purpose of this Act is to provide for matters concerning reporting on and use of specified financial transaction information necessary to regulate money laundering and financing of terrorism through financial transactions, such as foreign exchange transactions, thereby contributing to preventing crimes and further establishing a sound and transparent financial system.
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
The terms used in this Act shall be defined as follows: <Amended by Act No. 10694, May 19, 2011; Act No. 12103, Aug. 13, 2013; Act No. 12710, May 28, 2014; Act No. 14242, May 29, 2016>
| 1. | The term "financial company, etc." refers to each of the following persons: |
| (i) | Credit Unions and the National Federation of Credit Unions under the Credit Unions Act; |
| (m) | Casino business operators (hereinafter referred to as "casino business operator") that engage in casino business after having obtained permission under the Tourism Promotion Act; |
| (n) | Persons prescribed by Presidential Decree who conduct financial transactions under subparagraph 2; |
| 2. | The term "financial transaction" refers to each of the following: |
| (a) | Importation, purchase and sale, repurchase, brokerage, discount, issuance, redemption, refund, trust, registration, or exchange of financial assets (referring to financial assets provided for in subparagraph 2 of Article 2 of the Act on Real Name Financial Transactions and Confidentiality), or payment of interest, discounts, or dividends thereof by a financial company, etc., or conducting such business as an agency, or other transactions of financial assets as prescribed by Ordinance of the Prime Minister; |
| (c) | Exchanging cash or checks with the alternatives to cash or checks prescribed by Presidential Decree at the place of business of a casino business operator; |
| 3. | The term "illegal assets" refers to each of the following: |
| 4. | The term "money laundering" refers to each of the following acts: |
| (a) | Crimes under Article 3 of the Act on the Regulation and Punishment of Criminal Proceeds Concealment; |
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
| Article 3 (Korea Financial Intelligence Unit) |
| (1) | The Korea Financial Intelligence Unit shall be established under the Financial Services Commission to efficiently perform the following duties: <Amended by Act No. 12710, May 28, 2014; Act No. 16293, Jan. 15, 2019> |
| 1. | Compiling, analyzing, and providing information that has been reported or notified pursuant to Articles 4, 4-2, and 6; |
| 2. | Supervising and inspecting the operation of financial companies, etc. pursuant to Articles 4, 4-2, 5, 5-2, 5-3, and 5-4; |
| 3. | Cooperating with international financial intelligence services and exchanging information therewith under Article 4 (6) 2; |
| 4. | Cooperating with foreign financial supervision and inspection agencies and exchanging information therewith under Article 11-2; |
| 6. | Duties associated with those referred to in subparagraphs 1 through 5, which are prescribed by Presidential Decree. |
| (2) | The Korea Financial Intelligence Unit shall independently perform the duties under its own authority, and none of its public officials shall engage in any duties other than those provided for in this Act and the Act on Prohibition against the Financing of Terrorism and Proliferation of Weapons of Mass Destruction. <Amended by Act No. 12710, May 28, 2014> |
| (3) | Matters necessary for the fixed number of regular staff (including the number of public officials belonging to other institutions), and organization and operation of the Korea Financial Intelligence Unit shall be prescribed by Presidential Decree, taking into consideration the independence and political neutrality of its duties. <Amended by Act No. 12103, Aug. 13, 2013> |
| (4) | The head of the Korea Financial Intelligence Unit (hereinafter referred to as the "Commissioner of the Korea Financial Intelligence Unit") shall report the following matters regarding the performance of duties referred to in paragraph (1), to a regular session of the National Assembly on an annual basis: <Amended by Act No. 12103, Aug. 13, 2013> |
| 1. | The number of reports filed by financial companies, etc. under Article 4; |
| 2. | The number of requests for providing specified financial transaction information and number of cases where specified financial transaction information has been provided pursuant to Article 7; |
| 2-2. | Statistical data related to notification and postponement of notification under Article 7-2; |
| 3. | The number of exchanging information with international financial intelligence services under Article 8; |
| 4. | Other statistical data related to the duties of the Korea Financial Intelligence Unit. |
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
| Article 4 (Reporting, etc. on Transactions of Suspected Illegal Assets, etc.) |
| (1) | Any financial company, etc. shall report any of the following cases to the Commissioner of the Korea Financial Intelligence Unit without delay, as prescribed by Presidential Decree: <Amended by Act No. 12103, Aug. 13, 2013; Act No. 12710, May 28, 2014; Act No. 12716, May 28, 2014> |
| 1. | Where any reasonable grounds exist to suspect that an asset which has been given in relation to any financial transaction is illegal; |
| (2) | Deleted. <by Act No. 12103, Aug. 13, 2013> |
| (3) | Where a financial company, etc. files a report under paragraph (1), it shall clearly state the reasonable grounds for such suspicion. <Amended by Act No. 12103, Aug. 13, 2013> |
| (4) | Deleted. <by Act No. 16293, Jan. 15, 2019> |
| (5) | In analyzing reports filed by a financial company, etc. in accordance with paragraph (1), the Commissioner of the Korea Financial Intelligence Unit may inspect or reproduce the relevant data kept by the financial company, etc. in accordance with Article 5-4 (1) 1, only where it is necessary to examine whether the reports filed by the financial company, etc. meet the requirements set forth in paragraph (1). <Amended by Act No. 12103, Aug. 13, 2013; Act No. 16293, Jan. 15, 2019> |
| (6) | Where any employee of a financial company, etc. intends to file or has filed a report under paragraph (1), he/she shall not divulge such fact to any third person, including the other party to the relevant financial transaction: Provided, That the foregoing shall not apply to either of the following cases: <Amended by Act No. 12103, Aug. 13, 2013> |
| 1. | Where the same financial company, etc. internally divulges the report filed in order to prevent money laundering or financing of terrorism; |
| 2. | Where a report equivalent to one referred to in paragraph (1) is filed with a foreign institution that performs duties equivalent to those referred to in any subparagraph of Article 3 (1) (hereinafter referred to as "foreign financial intelligence services") pursuant to the statutes or regulations of the relevant foreign country. |
| (7) | No financial company, etc. (including employees of a financial company, etc.) that has filed a report under paragraph (1) shall be liable for damages to the other party to a financial transaction, or interested party thereto, whose financial transactions are related to each report, except where a false report has been filed by intention or gross negligence. <Amended by Act No. 12103, Aug. 13, 2013> |
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
| Article 4-2 (Reporting of Large Cash Transactions by Financial Companies, etc.) |
| (1) | Where a financial company, etc. has paid to, or received from the other party to a financial transaction, the amount or more prescribed by Presidential Decree to the extent not exceeding 50 million won in cash (excluding foreign currencies) or using other means of payment equivalent to cash prescribed by Presidential Decree (hereinafter referred to as "cash, etc."), it shall report such fact to the Commissioner of the Korea Financial Intelligence Unit within 30 days: Provided, That the foregoing shall not apply to any of the following cases: |
| 1. | Payment or receipt of cash, etc., to or from another financial company, etc. (excluding those prescribed by Presidential Decree); |
| 2. | Payment or receipt of cash, etc., to or from the State, a local government or any other public organization prescribed by Presidential Decree; |
| 3. | Ordinary payment or receipt in cash, etc., which poses no risk of money laundering, as prescribed by Presidential Decree. |
| (2) | Where any reasonable ground exists to suspect that the other party to a financial transaction is making installment transactions for the purpose of evading paragraph (1), a financial company, etc. shall report such fact to the Commissioner of the Korea Financial Intelligence Unit. |
| (3) | The Commissioner of the Korea Financial Intelligence Unit may designate and operate the following organizations as intermediaries to handle data related to the reporting of large cash transactions (hereinafter referred to as "intermediaries"): |
| 1. | Korea Federation of Banks, an incorporated association, founded pursuant to Article 32 of the Civil Act with permission of the Financial Services Commission; |
| (4) | The methods of reporting under paragraphs (1) and (2), the designation and operation of intermediaries under paragraph (3), and other necessary matters shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
| Article 5 (Measures, etc. by Financial Companies, etc.) |
| (1) | In order to facilitate the reporting referred to in Articles 4 (1) and 4-2 and effectively prevent money laundering and financing for terrorism through the financial company, etc., a financial company, etc. shall implement any of the following measures: <Amended by Act No. 11411, Mar. 21, 2012; Act No. 12103, Aug. 13, 2013; Act No. 16293, Jan. 15, 2019> |
| 1. | Designation of persons responsible for the reporting referred to in Articles 4 (1) and 4-2, and the establishment of an internal reporting system; |
| 2. | Preparation and implementation of procedures and work guidelines which the management and the employees of the relevant financial company, etc. shall comply with in performing their duties to prevent money laundering and financing of terrorism; |
| 3. | Educating and training the management and the employees to prevent money laundering and financing of terrorism. |
| (2) | Financial companies, etc. prescribed by Presidential Decree in consideration of the main types of transactions, transaction volume, etc. may be exempted in whole or in part from the measures referred to in the subparagraphs of paragraph (1). <Newly Inserted by Act No. 16293, Jan. 15, 2019> |
| (3) | Procedures and work guidelines under paragraph (1) 2 shall include the following: <Newly Inserted by Act No. 16293, Jan. 15, 2019> |
| 1. | Establishment and operation of a business system that applies different levels of management according to the degree of risk by identifying, analyzing and evaluating the risks of money laundering and financing of terrorism inherent in financial transactions, etc.; |
| 2. | Establishment and operation of a business system for reviewing and evaluating the adequacy and effectiveness of services and solving problems in a department or an organ that is independent of the department in charge of the work of preventing money laundering and financing of terrorism; |
| 3. | Other matters prescribed by Presidential Decree to efficiently prevent money laundering and financing of terrorism. |
| (4) | A financial company, etc. shall supervise its management and employees to ensure that they comply with the procedures and work guidelines under paragraph (1) 2 when performing their duties. <Newly Inserted by Act No. 16293, Jan. 15, 2019> |
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
| Article 5-2 (Customer Due Diligence for Financial Companies, etc.) |
| (1) | As part of due diligence to guard against the risk of money laundering and financing of terrorism using financial transactions, each financial company, etc. shall take the measures classified as follows. In such cases, any financial company, etc. shall prepare and implement work guidelines for such measures: <Amended by Act No. 12716, May 28, 2014> |
| 1. | Where a customer opens an account or makes a single financial transaction of at least the amount prescribed by Presidential Decree: to verify any of the following items: |
| (a) | Customer’s personal information and others related thereto prescribed by Presidential Decree; |
| (b) | A natural person finally governing and controling a customer (hereafter referred to as an “actual owner” in this Article) and others related thereto: Provided, That, where a customer is a legal person or organization, matters prescribed by Presidential Decree; |
| 2. | Where it is likely for a customer to commit money laundering or financing of terrorism, including where it is doubt that the customer is the actual owner: |
| (a) | Any item of subparagraph 1; |
| (b) | Matters determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit including the purpose of financial transaction and the origin of funds for transaction (limiting to the scope rationally determined by financial company etc., that it is possible to verify, having regard to the risks of money laundering and financing of terrorism. |
| (2) | Work guidelines under paragraph (1) shall include the details, procedures, and methods of appropriate measures related to the prevention of money laundering or financing of terrorism, by type of customer and financial transaction. |
| (3) | The object, standards, procedures, and methods of verification measures, etc. under each subparagraph of paragraph (1) and other necessary matters shall be prescribed by Presidential Decree. |
| (4) | Where it is not possible to verify identity of a customer because he/she refuses to provide information for identification, financial company, etc., shall reject a new transaction with the customer such as opening the new bank account, and if the customer has a transaction relation, the financial company shall terminate such transaction. <Newly inserted by Act No. 12716, May 28, 2014> |
| (5) | Where a transaction is rejected or terminated under paragraph (4), financial company, etc., shall review whether to report a suspicious transaction under Article 4. <Newly inserted by Act No. 12716, May 28, 2014> |
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
| Article 5-3 (Provision of Telegraphic Transfer Information) |
| (1) | Where a remitter transfers money exceeding the amount prescribed by Presidential Decree within the extent of five million won by means of a telegraphic transfer (referring to a service of transferring money via a financial company, etc. to other domestic or foreign financial company, etc., regardless of whether the remitter has an account), a financial company, etc. shall provide information on the remitter and remittee to the remittance-receiving financial company, etc. (hereinafter referred to as “receiving financial company”) according to the following classifications: |
| (a) | Name of a remitter (in cases of a corporation, referring to the name of the corporation; hereinafter the same shall apply); |
| (b) | Account number of a remitter (in cases of the absence of the account number, referring to any number available for reference; hereinafter the same shall apply); |
| (c) | Name and account number of a remittee; |
| (b) | Account number of a remitter; |
| (c) | Address and resident registration number of a remitter (in cases of a corporation, referring to the corporation registration number; in cases of a foreigner, referring to the passport number or the alien registration number); |
| (d) | Name and account number of a remittee. |
| (2) | In cases of a domestic transfer, a receiving financial company and the Commissioner of the Korea Financial Intelligence Unit may make a request for information falling under paragraph (1) 2 (c), in any of the following cases, to a financial company, etc. which transfers money under paragraph (1) (hereinafter referred to as “transferring financial company”): |
| 1. | Where making a request for such information is necessary in order for a receiving financial company to file a report under Article 4; |
| 2. | Where making a request for such information is necessary in order for the Commissioner of the Korea Financial Intelligence Unit to review or analyze information reported by a receiving financial company. |
| (3) | When requested to provide remittance information under paragraph (2), a transferring financial company shall provide such information within three business days. |
[This Article Newly Inserted by Act No. 12103, Aug. 13, 2013]
| Article 5-4 (Period of Holding of Financial Transaction Information by Financial Companies, etc.) |
| (1) | A financial company, etc. shall retain the following data and information related to the fulfillment of duties under Articles 4, 4-2, 5-2 and 5-3 (hereafter in this Article referred to as “fulfillment of duties”) for five years from the time the financial transaction relationship is terminated: |
| 1. | Any of the following data related to the reporting under Articles 4 and 4-2: |
| (a) | Data that can identify the real name of the other party to a financial transaction; |
| (b) | Data of financial transaction subject to the reporting; |
| (c) | Data filed by the financial company, etc. stating the reasonable grounds for suspicion under Article 4 (3); |
| 2. | Data related to the verification of customer identity under the subparagraphs of Article 5-2 (1); |
| 3. | Information on a remitter and a remittee under the subparagraphs of Article 5-3 (1); |
| 4. | Other data determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit in relation to the fulfillment of duties. |
| (2) | “Time the financial transaction relationship is terminated” in paragraph (1), with the exception of its subparagraphs, shall be any of the following dates: |
| 1. | In the case of subparagraph 2 (a) of Article 2, the date all obligations between a financial company, etc. and a customer are terminated; |
| 2. | In the case of any transaction made in a derivatives market referred to in subparagraph 2 (b) of Article 2, the date the transaction is terminated due to the occurrence of an event triggering termination: Provided, That when the customer’s account is opened, it shall be deemed the date the account is closed; |
| 3. | In the case of subparagraph 2 (c) of Article 2, the date all obligations in casino between a casino business operator and a customer are terminated; |
| 4. | In the case of other financial transactions, the date prescribed by Presidential Decree. |
| (3) | Methods and places for retention under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 16293, Jan. 15, 2019]
| Article 6 (Notification of Data of Foreign Exchange Transactions, etc.) |
| (2) | Necessary matters concerning the scope of the data subject to notification and the procedures of notification under paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
| Article 7 (Provision of Information to Investigation Agencies, etc.) |
| (1) | Where deemed necessary for criminal investigations related to illegal assets, money laundering, or financing of terrorism, investigations of suspected tax evasion, collection of taxes from defaulters, customs investigations, investigations of suspicious customs evasion, collection of customs from defaulters, and investigations of any offense committed in violation of the Political Funds Act, supervision of financial transactions, or investigations of persons who might be involved in terrorist acts (hereinafter referred to as "investigation, etc. of specific criminal offenses") the Commissioner of the Korea Financial Intelligence Unit shall provide each of the following information (hereinafter referred to as "specified financial transaction information") to the Prosecutor General, the Commissioner of the National Tax Service, the Commissioner of the Korea Customs Service, the National Election Commission, the Financial Services Commission, or the Director of the National Intelligence Service : <Amended by Act No. 10694, May 19, 2011; Act No. 11411, Mar. 21, 2012; Act No. 11546, Dec. 11, 2012; Act No. 12103, Aug. 13, 2013; Act No. 14071, Mar. 3, 2016> |
| 1. | Information prescribed by Presidential Decree, taking into consideration relevance to specific criminal investigations, among the information reported by a financial company, etc. under Articles 4 (1) or 4-2; |
| 2. | Information prescribed by Presidential Decree, taking into consideration relevance to specific criminal investigations, among the information provided by foreign financial intelligence services under Article 8 (1); |
| 3. | Compilation or analysis of the information referred to in subparagraphs 1 and 2 or of the information reported or notified under Articles 4-2 and 6. |
| (2) | Where deemed necessary for criminal investigations related to illegal assets, money laundering, or financing of terrorism, the Commissioner of the Korea Financial Intelligence Unit shall provide the specified financial transaction information prescribed by Presidential Decree to the Commissioner General of the Korean National Police Agency and the Commissioner General of the Korea Coast Guard. <Amended by Act No. 10694, May 19, 2011; Act No. 11546, Dec. 11, 2012; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017> |
| (3) | Deleted. <by Act No. 7336, Jan. 17, 2005> |
| (4) | Where deemed necessary for specific criminal investigations, the Prosecutor General, the Commissioner General of the Korean National Police Agency, the Commissioner General of the Korea Coast Guard, the Commissioner of the National Tax Service, the Commissioner of the Korea Customs Service, the National Election Commission, the Financial Services Commission, or the Director of the National Intelligence Service (hereinafter referred to as the "Prosecutor General, etc.") may request the Commissioner of the Korea Financial Intelligence Unit to provide the information referred to in paragraph (1) 3, as prescribed by Presidential Decree. <Amended by Act No. 10694, May 19, 2011; Act No. 11546, Dec. 11, 2012; Act No. 12844, Nov. 19, 2014; Act No. 14071, Mar. 3, 2016; Act No. 14839, Jul. 26, 2017> |
| (5) | Where the Prosecutor General, etc. requests the provision of specified financial transaction information under paragraph (4), he/she shall file a written request that states all of the following: <Amended by Act No. 10694, May 19, 2011; Act No. 12103, Aug. 13, 2013> |
| 1. | Personal information of the subject; |
| 3. | Details of information requested; |
| 4. | Necessity of information on criminal charges and suspicion of tax evasion, etc. and relevance to the purpose of use. |
| (6) | Where a public official of the Korea Financial Intelligence Unit receives a request to provide the specified financial transaction information in violation of paragraph (5), he/she shall refuse such request. <Amended by Act No. 10694, May 19, 2011> |
| (7) | When the Commissioner of the Korea Financial Intelligence Unit has provided specified financial transaction information under paragraphs (1), (2) and (4), he/she shall record each of the following and retain such data for five years from the date of providing such information, in writing or in computerized information processing systems, in the standard form prescribed by the Commissioner of the Korea Financial Intelligence Unit: <Amended by Act No. 10694, May 19, 2011; Act No. 12103, Aug. 13, 2013> |
| 1. | The positions and names of staff members (those in responsible charge) of the Korea Financial Intelligence Unit who participate in the review and analysis and the provision of such information; |
| 2. | The name of an institution to which specified financial transaction information was provided and the date of such provision; |
| 3. | The institution which a public official (those in responsible charge) of who receives specified financial transaction information belongs to, and his/her position and name; |
| 4. | Details of specified financial transaction information requested and purpose of its use; |
| 5. | Details of specified financial transaction information provided and grounds for the provision thereof; |
| 6. | Date on which a title holder is notified; |
| 7. | Where notification is delayed, the date of such delay, grounds therefor, and the period and number of such delay. |
| (8) | The Commissioner of the Korea Financial Intelligence Unit shall establish an intelligence analysis council under his/her control to deliberate on the provision of specified financial transaction information to the Prosecutor General, etc. <Newly Inserted by Act No. 12103, Aug. 13, 2013> |
| (9) | The intelligence analysis council established under paragraph (8) shall be comprised of three public officials of the Korea Financial Intelligence Unit, including the Commissioner of the Korea Financial Intelligence Unit, a general manager in charge of the review and analysis, and one person qualified as prescribed by Presidential Decree. <Newly Inserted by Act No. 12103, Aug. 13, 2013> |
| (10) | Other matters regarding the deliberation procedures and operation, etc. of the intelligence analysis council shall be prescribed by Presidential Decree, taking into consideration the independence and neutrality of duties of the Korea Financial Intelligence Unit. <Newly Inserted by Act No. 12103, Aug. 13, 2013> |
| (11) | Where the Commissioner of the National Tax Service or the Commissioner of the Korea Customs Service receives specified financial transaction information from the Commissioner of the Korea Financial Intelligence Unit pursuant to paragraph (4) and makes use of it in investigating tax or customs evasion or collecting tax or customs from defaulters, he/she shall request a financial company, etc., within one year, to provide the relevant transaction information, etc. under Article 4 (1) of the Act on Real Name Financial Transactions and Confidentiality. <Newly Inserted by Act No. 12103, Aug. 13, 2013> |
| (12) | The Prosecutor General, etc., shall establish the standards to retain and manage specified financial transaction information provided under paragraphs (1), (2), and (4) and notify the Commissioner of the Korea Financial Intelligence Unit thereof. <Newly inserted by Act No. 12716, May 28, 2014> |
| Article 7-2 (Notification of Provision of Specified Financial Transaction Information) |
| (1) | Where the Commissioner of the Korea Financial Intelligence Unit provides the information reported by a financial company, etc. under Article 4-2 (excluding information under Article 7 (1) 3) to the Prosecutor General, etc. pursuant to Article 7, he/she shall notify a title holder of major details of provided transaction information, purpose of its use, the recipient of information, the date of providing, etc, within ten days from the date of providing (in cases of postponing notification under paragraph (2) or (3), the date when the period for postponement of notification ends), in the standard format prescribed by the Commissioner of the Korea Financial Intelligence Unit. |
| (2) | Where the Commissioner of the Korea Financial Intelligence receives a written request for postponement of notification from the Prosecutor General, etc. on any of the following grounds, he/she shall postpone a notification within six months, notwithstanding paragraph (1): |
| 1. | Where it is likely that the relevant notification will pose a threat to human lives or physical safety; |
| 2. | Where the relevant notification is highly likely to obstruct, pervert or defeat the course of justice in a judicial proceeding by destroying evidence, threatening witnesses, etc.; |
| 3. | Where the relevant notification is highly likely to obstruct or excessively delay the progress of administrative procedures, such as inquiries and investigations. |
| (3) | Where the Prosecutor General, etc. shows the persistence of any of the following grounds referred to in any subparagraph of paragraph (2) and makes repeatedly written requests for postponement of notification, the Commissioner of the Korea Financial Intelligence Unit shall postpone a notification for the requested period for postponement, within three months each time, not more than twice from the date of receipt of such requests (excluding cases falling under paragraph (2) 1). |
| (4) | Where deemed necessary for sending a notification to a title holder under paragraph (1), the Commissioner of the Korea Financial Intelligence Unit may request the head of the relevant administrative agency, etc. to provide each of the following data, in writing stating the purpose of the use: |
| 2. | Basic data related to a business operator including a place of business. |
[This Article Newly Inserted by Act No. 12103, Aug. 13, 2013]
| Article 8 (Exchanging, etc. of Information with Foreign Financial Intelligence Services) |
| (1) | The Commissioner of the Korea Financial Intelligence Unit may, if deemed necessary to achieve the purposes of this Act, provide specified financial transaction information to foreign financial intelligence services, or receive such information therefrom, in accordance with principle of reciprocity. |
| (2) | Where the Commissioner of the Korea Financial Intelligence Unit intends to provide foreign financial intelligence services with specified financial transaction information under paragraph (1), he/she shall satisfy all of the following requirements: |
| 1. | No specified financial transaction information provided to foreign financial intelligence services shall be used for any purpose, other than its original purpose; |
| 2. | The provision of specified financial transaction information shall be kept confidential; |
| 3. | No specified financial transaction information provided to foreign financial intelligence services shall be used for an investigation of or a trial for foreign criminal offenses, without prior consent from the Commissioner of the Korea Financial Intelligence Unit. |
| (3) | The Commissioner of the Korea Financial Intelligence Unit may, in receipt of a request by a foreign country, give consent to the use of specified financial transaction information provided pursuant to paragraph (1), with a prior consent of the Minister of Justice, for criminal investigations or trials for criminal offenses related to the request. |
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
| Article 9 (Confidentiality, etc. of Financial Transaction Information) |
| (1) | No person falling under any of the following subparagraphs shall provide or divulge specified financial transaction information to others he/she becomes aware of in the course of performing his/her duties, information received under Article 5-3, information or data received under Article 10, information received under Article 11 (7), or matters that come to his/her knowledge at the intelligence analysis council under Article 7 (8), or use them for purposes other than its original purpose: <Amended by Act No. 11411, Mar. 21, 2012; Act No. 12103, Aug. 13, 2013> |
| 1. | Public official belonging to the Korea Financial Intelligence Unit; |
| 2. | Manager of the computerized system of the Korea Financial Intelligence Unit (referring to a computerized system for processing specified financial transaction information) and a service performer of the relevant computerized system; |
| 3. | Employee of an intermediary; |
| 3-2. | Person working at a remittance-receiving financial company; |
| 4. | Person involved in specific criminal investigations related to specified financial transaction information provided under Article 7; |
| 5. | Person who conducted supervision and examination under Article 11 (1) and (6); |
| 6. | Person who participates in the intelligence analysis council or becomes engaged in duties of the intelligence analysis council under Article 7 (9). |
| (2) | No one shall request any person falling under any subparagraph of paragraph (1) to provide specified financial transaction information, information received under Article 5-3, information or data received under Article 10, and information received under Article 11 (7), or to use them for purposes other than its original purpose. <Newly Inserted by Act No. 11411, Mar. 21, 2012; Act No. 12103, Aug. 13, 2013> |
| (3) | No specified financial transaction information provided under Article 7 shall be used as evidence in a trial. <Amended by Act No. 11411, Mar. 21, 2012> |
| (4) | Employees of a financial company, etc. who have been involved in reporting under Article 4 (1) may refuse to testify in trials on matters related to such reporting, except in trials related to Articles 13 and 14: Provided, That the foregoing shall not apply where it is deemed necessary for substantial public interest. <Amended by Act No. 11411, Mar. 21, 2012; Act No. 12103, Aug. 13, 2013> |
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
| Article 9-2 (Preservation and Destruction of Specified Financial Transaction Information, etc.) |
| (1) | Notwithstanding other statutes or regulations, the Commissioner of the Korea Financial Intelligence Unit shall preserve the specified financial transaction information and the information or materials he/she has received or been notified of pursuant to Articles 5-3, 6, 10, 11 (7) (hereafter referred to as "information, etc." in this Article) for a specified period, as prescribed by Presidential Decree. |
| (2) | Where the preservation period referred to in paragraph (1) expires, the Commissioner of the Korea Financial Intelligence Unit shall destroy such information, etc. in accordance with the procedure specified in the Public Records Management Act: Provided, That the foregoing shall not apply to cases determined by Presidential Decree as deemed necessary to accomplish the purpose of this Act. |
| (3) | Where the Commissioner of the Korea Financial Intelligence Unit destroys the information, etc. pursuant to paragraph (2), he/she shall take necessary measures to ensure that such information, etc. are not recovered or reproduced. |
| (4) | Necessary matters for the method and procedure for destroying information, etc. and other matters shall be determined by Presidential Decree. |
[This Article Newly Inserted by Act No. 12716, May 28, 2014]
| Article 10 (Requests, etc. for Provision of Data) |
| (1) | When deemed necessary for analyzing specified financial transaction information (excluding information referred to in Article 7 (1) 3; hereafter the same shall apply in this Article) or information reported or notified under Article 4-2 or 6, the Commissioner of the Korea Financial Intelligence Unit may make a request for the provision of following data to the head of a relevant administrative agency, etc. in writing clearly stating the purpose for its use (excluding financial transaction information): <Amended by Act No. 12103, Aug. 13, 2013; Act No. 14133, Mar. 29, 2016> |
| 4. | Data on basic matters concerning business operators including business items and places of business as prescribed by Presidential Decree; |
| 5. | Other data necessary for the review and analysis as prescribed by Presidential Decree. |
| (2) | Where it is necessary for the analysis of specified financial transaction information, the Commissioner of the Korea Financial Intelligence Unit may request the head of a credit information concentration agency under Article 25 of the Credit Information Use and Protection Act to provide credit information (except financial transaction information) in writing clearly stating the purpose of the use, as prescribed by Presidential Decree. |
| (3) | In analyzing specified financial transaction information, the Commissioner of the Korea Financial Intelligence Unit may request the head of a financial company, etc., to provide the information or data of financial transactions including foreign transactions provided for in the Foreign Exchange Transactions Act in writing stating each of the following, only where matters reported or provided are deemed to satisfy the requirements set forth in Article 4 (1): <Amended by Act No. 12103, Aug. 13, 2013> |
| 1. | Personal information of parties to a transaction; |
| 3. | Details of requested information or data related to financial transactions. |
| (4) | The request or demand for providing information or data under paragraphs (1) through (3) shall be limited to the minimum extent necessary. |
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
| Article 11 (Supervision, Inspection, etc. of Financial Companies, etc.) |
| (1) | The Commissioner of the Korea Financial Intelligence Unit may supervise operations carried out by financial companies, etc., give orders or directives when necessary for supervision, and direct public officials under his/her control to inspect the operations of financial companies, etc. pursuant to Article 4, 4-2, 5, 5-2, 5-3 or 5-4. <Amended by Act No. 12103, Aug. 13, 2013; Act No. 16293, Jan. 15, 2019> |
| (2) | Where any violation of this Act or orders or directives given under this Act is detected as the result of inspections conducted in accordance with paragraph (1), the Commissioner of the Korea Financial Intelligence Unit may impose any of the following measures on the relevant financial company, etc.: <Amended by Act No. 11411, Mar. 21, 2012> |
| 1. | Issuance of a corrective order; |
| 2. | Warning to an institution; |
| 3. | Caution to an institution. |
| (3) | Where any violation of this Act or orders or directives given under this Act is detected as the result of inspections conducted in accordance with paragraph (1), the Commissioner of the Korea Financial Intelligence Unit may request the head of financial company, etc. to take measures classified as follows to the management and employees of the relevant financial company involved in violation: <Newly Inserted by Act No. 11411, Mar. 21, 2012> |
| 1. | Executive officers: any of the following measures: |
| (a) | Recommendation of dismissal; |
| (b) | Suspension of the performance of duties for not more than six months; |
| 2. | Employees: any of the following measures: |
| (a) | Removal from one’s office; |
| (b) | Suspension from one’s office for not more than six months; |
| (4) | The Commissioner of the Korea Financial Intelligence Unit may, in any of the following cases, request the head of the related administrative agency who is authorized to impose an administrative sanction on the business operation of the relevant financial company, etc. to fully or partially suspend the business operation thereof for a period of up to six months: <Newly Inserted by Act No. 11411, Mar. 21, 2012> |
| 1. | Where it fails to implement a corrective order under paragraph (2) 1; |
| 2. | Where it has received warning to an institution under paragraph (2) 2 at least three times; |
| 3. | Where it fails to take necessary measures to prevent money laundering and financing of terrorism by intention or gross negligence, as cases prescribed by Presidential Decree. |
| (5) | The head of the related administrative agency shall, upon receipt of a request under paragraph (4), comply with the request, unless any justifiable ground exists to the contrary. <Newly Inserted by Act No. 11411, Mar. 21, 2012> |
| (6) | The Commissioner of the Korea Financial Intelligence Unit may entrust the Governor of the Bank of Korea, the Governor of the Financial Supervisory Service under the Act on the Establishment of Financial Services Commission or those prescribed by Presidential Decree with the task of conducting inspections referred to in paragraph (1) and taking measures referred to in paragraphs (2) and (3) to be carried out by their staff, as prescribed by Presidential Decree. <Amended by Act No. 11411, Mar. 21, 2012> |
| (7) | A person engaged in supervising and conducting inspections under paragraph (1) or (6) may, when necessary for supervision or inspections, make a request for financial transaction information or information reported under Articles 4 and 4-2 to the head of a financial company, etc. In such cases, any request for information shall be limited to the minimum extent necessary. <Newly Inserted by Act No. 11411, Mar. 21, 2012> |
| (8) | A person engaged in conducting inspections under paragraph (1) or (6) shall carry an identification indicating his/her authority and produce it to interested persons. <Amended by Act No. 11411, Mar. 21, 2012> |
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
| Article 11-2 (Cooperating in Business with Foreign Financial Supervision and Inspection Agencies) |
| (1) | The Commissioner of the Korea Financial Intelligence Unit (hereafter in this Article including those entrusted with the authority of the Commissioner of the Korea Financial Intelligence Unit under Article 11 (6)) may cooperate with a foreign financial supervision and inspection agency (referring to a foreign agency that conducts the supervision and inspection of the duties of financial companies, etc. under Article 4, 4-2, 5, 5-2, 5-3, or 5-4; hereafter in this Article the same shall apply), if the agency requests that supervision or inspection be conducted regarding a violation of foreign statutes and regulations (referring to foreign statutes and regulations reflecting international agreements on the prevention of money laundering and the prohibition of financing of terrorism and recommendations from international organizations; hereafter in this Article referred to as “foreign statutes and regulations”), as prescribed in this Act, stating the purpose, scope, etc. of supervision or inspection. In such cases, the Commissioner of the Korea Financial Intelligence Unit may furnish the foreign financial supervision and inspection agency or be furnished with materials for supervision or inspection under the principle of reciprocity. |
| (2) | The Commissioner of the Korea Financial Intelligence Unit may furnish a foreign financial supervision and inspection agency with materials for supervision or inspection in accordance with the latter part of paragraph (1), only where the agency meets all of the following requirements: |
| 1. | The foreign financial supervision and inspection agency shall not use the materials for supervision or inspection furnished for any purpose other than the purpose for which they are furnished; |
| 2. | The foreign financial supervision and inspection agency shall keep confidential the materials for supervision or inspection and the fact that such materials are furnished: Provided, That the same shall not apply where the materials for supervision or inspection are used for any disposition or any procedure equivalent thereto pursuant to the foreign statutes and regulations within the scope of purpose for which such materials are furnished. |
| (3) | Article 11 (7) shall apply mutatis mutandis to supervision and inspection under paragraph (1). |
[This Article Newly Inserted by Act No. 16293, Jan. 15, 2019]
| Article 12 (Relationship to other Acts) |
| (1) | The provisions of Articles 4, 4-2, 5-3, 6 through 8, 10 and 11 (7) shall prevail over Article 4 of the Act on Real Name Financial Transactions and Confidentiality, Articles 32 and 42 of the Credit Information Use and Protection Act, and Article 22 of the Foreign Exchange Transactions Act. <Amended by Act No. 11411, Mar. 21, 2012; Act No. 12103, Aug. 13, 2013> |
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
| Article 13 (Penalty Provisions) |
Any of the following persons shall be punished by imprisonment with labor for up five years, or by a fine up to 50 million won: <Amended by Act No. 11411, Mar. 21, 2012; Act No. 12103, Aug. 13, 2013; Act No. 12716, May 28, 2014>
| 1. | A person who inspects or reproduces the relevant data retained by a financial company, etc., or requests the head of a financial company, etc. to provide information or data related to financial transactions, by abusing his/her authority, despite a failure to meet the requirements under Article 4 (5) or 10 (3); |
| 2. | A person who provides or divulges the specified financial transaction information he/she has become aware of in the course of performing his/her duties, the information provided under Article 5-3, the information or data provided under Article 10, or the information provided under Article 11 (7) to a third person in violation of Article 9 (1), or uses it for purposes other than its original purpose, or a person who requests to provide the specified financial transaction information, the information provided under Article 5-3, the information or data provided under Article 10 or the information provided under Article 11 (7), or requests to use it for purposes other than its original purpose; |
| 3. | A person who provides or divulges the information he/she becomes aware of at the meeting of the intelligence analysis council under Article 7 (8) to a third person, or uses it for the purposes other than its original purpose in violation of Article 9 (1), or a person who requests to provide such information or to use it for purposes other than its original purpose. |
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
| Article 14 (Penalty Provisions) |
Either of the following persons shall be punished by imprisonment with labor for not more than one year, or by a fine not exceeding ten million won: <Amended by Act No. 12103, Aug. 13, 2013; Act No. 12716, May 28, 2014>
| 1. | A person who files a false report, in violation of Article 4 (1) or 4-2 (1) or (2); |
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
| Article 15 (Concurrent Imposition of Imprisonment with Labor and Fines) |
A person who commits any offence provided for in Articles 13 and 14 may be sentenced to imprisonment with labor and a fine concurrently. [This Article Wholly Amended by Act No. 10694, May 19, 2011]
| Article 16 (Joint Penalty Provisions) |
Where the representative of a corporation, or an agent or employee of, or other persons employed by the corporation or an individual commits any violation under Article 14 in conducting the business affair of the corporation or the 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 the foregoing shall not apply where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant duties to prevent such violation. [This Article Wholly Amended by Act No. 10694, May 19, 2011]
| Article 17 (Administrative Fines) |
| (1) | Any of the following persons shall be punished by an administrative fine not exceeding 10 million won: <Amended by Act No. 11411, Mar. 21, 2012; Act No. 12103, Aug. 13, 2013; Act No. 12716, May 28, 2014; Act No. 16293, Jan. 15, 2019> |
| 1. | A person who fails to take measures under the subparagraphs of Article 5 (1), in violation of Article 5 (1); |
| 2. | A person who fails to take verification measures in violation of Article 5-2 (1) 2; |
| 3. | A person who fails to comply with, refuses, interferes with, or evades an order, direction or inspection under Article 11 (1) through (3) or (6). |
| (2) | Any of the following persons shall be subject to an administrative fine not exceeding 30 million won: <Newly Inserted by Act No. 16293, Jan. 15, 2019> |
| 1. | A person who fails to file a report in violation of Article 4 (1) 1 or 2 or Article 4-2 (1) or (2); |
| 2. | A person who fails to take verification measures in violation of Article 5-2 (1) 1; |
| 3. | A person who fails to retain data and information in violation of Article 5-4 (1). |
| (3) | Administrative fines under paragraphs (1) and (2) shall be imposed and collected by the Commissioner of the Korea Financial Intelligence Unit, as prescribed by Presidential Decree. <Amended by Act No. 16293, Jan. 15, 2019> |
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
ADDENDA
| (1) | (Enforcement Decree) This Act shall enter into force two months after the date of its promulgation. |
| (2) | (Applicability concerning Scope of Information, etc. Requested by the Commissioner of the Korea Financial Intelligence Unit) The scope of information or data the Commissioner of the Korea Financial Intelligence Unit may request the heads of financial institutions, etc. to submit under Article 10 (3) 3 shall be limited to information or data related to financial transactions made after this Act enters into force. |
ADDENDA <Act No. 7311, Dec. 31, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Omitted.)
Articles 2 through 16 Omitted.
ADDENDA <Act No. 7336, Jan. 17, 2005>
| (1) | (Enforcement Decree) This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 4-2 and 5-2 shall enter into force one year after this Act enters into force. |
| (2) | (Applicability concerning Report on Large Amount of Cash Transactions) The amended provisions of Article 4-2 shall apply to cash, etc. paid or received on or after the date this Act enters into force. |
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. 8704, Dec. 21, 2007>
Article 1 (Enforcement Decree)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 1, subparagraphs 1 (n), 2 (c), 3 (c) and 5 of Article 2, Article 3 (1) 4 and 5, and 3 (2), Article 4 (1) and (2) and the part related to financing of terrorism from paragraph (6) 1, Article 4-2 (1) 1, (3) and (4), Article 5, Article 5-2, Article 7 (1) and (2), Article 9 (1), and the part related to intermediaries from Article 12 (2) shall enter into force one year after the date of its promulgation. Article 2 (Applicability to Money Laundering)
The amended provisions of subparagraph 4 (c) of Article 2 shall apply to money laundering referred to in the said item which is committed on or after the date this Act enters into force. Article 3 (Transitional Measures concerning Administrative Fines)
The former provisions shall apply to administrative fines on acts committed before this Act enters into force.
Article 4 (Transitional Measures Pursuant to the Financial Investment Service and Capital Markets Act)
| (1) | Transactions made in the derivatives market as set forth in subparagraph 2 (b) of Article 2 under the Capital Market and Financial Business Act shall be construed as futures trading under subparagraphs 1 and 2 of Article 3 of the Futures Trading Act, until February 4, 2009. |
| (2) | The Korea Financial Investors' Association as set forth in Article 4-2 (3) 2 shall be construed as the Korea Securities Dealers Association established under Article 162 of the Securities and Exchange Act, until February 4, 2009. |
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.
ADDENDA <Act No. 9617, Apr. 1, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 13 Omitted.
ADDENDA <Act No. 9919, Jan. 1, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 10043, Feb. 4, 2010>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 10303, May 17, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Act No. 10522, Mar. 31, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on March 2, 2012. (Proviso Omitted.)
Articles 2 through 28 Omitted.
ADDENDA <Act No. 10694, May 19, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Enforcement Date of the Community Credit Cooperatives Act)
"The National Federation of Community Credit Cooperatives" referred to in the amended provisions of subparagraph 1 (j) of Article 2 shall be construed as "the Federation of Community Credit Cooperatives" until September 8, 2011. Article 3 Omitted.
ADDENDA <Act No. 11411, Mar. 21, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation: Provided, That the amended provisions of Article 7 (1) shall enter into force on the date of its promulgation. Article 2 (Applicability to Whole or Partial Suspension of Business)
The amended provisions of Article 11 (4) shall apply to grounds for whole or partial suspension of business which arise on and after the date this Act enters into force.
ADDENDUM <Act No. 11546, Dec. 11, 2012>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 12103, Aug. 13, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Article 7 (8) through (10) shall enter into force six months after the date of its promulgation. Article 2 (Applicability concerning Provision of Telegraphic Transfer Information)
The amended provisions of Article 5-3 (2) shall apply to a request for telegraphic transfer information which is made on or after the date this Act enters into force. Article 3 (Transitional Measures concerning Penalty Provisions, etc.)
The former provisions shall apply to penalty provisions and administrative fines on acts committed before this Act enters into force.
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. 12716, May 28, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Articles 5-2 (1), (4) and (5), 7 (12), and 9-2 shall enter into force on January 1, 2016. Article 2 (Applicability concerning Preservation and Destruction of Specified Financial Transaction Information, etc.)
The amended provisions of Article 9-2 shall also apply to the specified financial transaction information retained by the Commissioner of the Korea Financial Intelligence Unit and to the information or materials provided or notified of pursuant to Articles 5-3, 6, 10, and 11 (7) as at the time the same provisions enter into force.
ADDENDA <Act No. 12844, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amendments to the Acts to be amended pursuant to Article 6 of the Addenda, which were promulgated before this Act enters into force but the enforcement dates of which have yet to arrive, shall enter into force on the enforcement date of the relevant Act.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 14071, Mar. 3, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDUM <Act No. 14133, Mar. 29, 2016>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 14242, May 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on December 1, 2016. (Proviso Omitted.)
Articles 2 through 22 Omitted.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amendments to the Acts, which were promulgated before this Act enters into force but whose enforcement dates have yet to arrive, from among the Acts amended by Article 5 of the Addenda, shall enter into force on their respective enforcement dates.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 16293, Jan. 15, 2019>
This Act shall enter into force on July 1, 2019.