ENFORCEMENT DECREE OF THE ACT ON REPORTING AND USING SPECIFIED FINANCIAL TRANSACTION INFORMATION
Presidential Decree No. 17416, Nov. 24, 2001
Amended by Presidential Decree No. 17791, Dec. 5, 2002
Presidential Decree No. 18228, Jan. 20, 2004
Presidential Decree No. 18312, Mar. 17, 2004
Presidential Decree No. 19054, Sep. 27, 2005
Presidential Decree No. 20653, Feb. 29, 2008
Presidential Decree No. 20947, Jul. 29, 2008
Presidential Decree No. 21114, Nov. 11, 2008
Presidential Decree No. 21480, May 6, 2009
Presidential Decree No. 22104, Mar. 26, 2010
Presidential Decree No. 22493, Nov. 15, 2010
Presidential Decree No. 24317, Jan. 16, 2013
Presidential Decree No. 24435, Mar. 23, 2013
Presidential Decree No. 24683, Aug. 6, 2013
Presidential Decree No. 24842, Nov. 13, 2013
Presidential Decree No. 25751, Nov. 19, 2014
Presidential Decree No. 26818, Dec. 30, 2015
Presidential Decree No. 27038, Mar. 22, 2016
Presidential Decree No. 27090, Apr. 5, 2016
Presidential Decree No. 27205, May 31, 2016
Presidential Decree No. 28145, jun. 27, 2017
Presidential Decree No. 28152, jun. 27, 2017
Presidential Decree No. 28218, Jul. 26, 2017
Presidential Decree No. 28687, Feb. 27, 2018
Presidential Decree No. 29601, Feb. 26, 2019
Presidential Decree No. 29722, Apr. 30, 2019
Presidential Decree No. 29929, jun. 25, 2019
Presidential Decree No. 30423, Feb. 18, 2020
Presidential Decree No. 30893, Aug. 4, 2020
Presidential Decree No. 30934, Aug. 11, 2020
Presidential Decree No. 30967, Aug. 25, 2020
Presidential Decree No. 31380, Jan. 5, 2021
Presidential Decree No. 31445, Feb. 17, 2021
Presidential Decree No. 31554, Mar. 23, 2021
Presidential Decree No. 32028, Oct. 5, 2021
Presidential Decree No. 33377, Apr. 5, 2023
| Article 1-2 (Scope of Virtual Asset Transactions) |
[This Article Newly Inserted on Mar. 23, 2021]
| Article 2 (Financial Companies) |
"Persons prescribed by Presidential Decree" in subparagraph 1 (o) of Article 2 of the Act means the following persons: <Amended on Dec. 5, 2002; Sep. 27, 2005; Jul. 29, 2008; Nov. 11, 2008; May 6, 2009; Aug. 16, 2013; Dec. 30, 2015; May 31, 2016; Jun. 27, 2017; Feb. 26, 2019; Apr. 30, 2019; Aug. 11, 2020; Aug. 25, 2020; Mar. 23, 2021> | 4. | Online investment-linked financial business entities registered under Article 5 of the Act on Online Investment-Linked Financial Business and the Protection of Users; |
| 9. | Deleted; <Dec. 30, 2015> |
| 15. | Other persons determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit under Article 3 of the Act (hereinafter referred to as the "Korea Financial Intelligence Unit"), among persons engaging in financial transactions, etc. that are likely to be used for money laundering and financing of terrorism. |
[Title Amended on Aug. 6, 2013]
| Article 3 (Financial Transactions) |
| (1) | "Other transactions prescribed by Presidential Decree" in subparagraph 2 (b) of Article 2 of the Act means those falling under the following: <Amended on Apr. 30, 2019; Aug. 25, 2020> |
| 1. | Transactions arising from business of loan, guarantee, insurance, mutual aid, factoring (referring to business of acquisition by transfer, management or collection of accounts receivable acquired by means of provision of goods or services by an enterprise), keeping securities, safe lending; |
| 2. | Transactions arising from business of credit card, debit card, prepaid card, facilities leasing, deferred payment sale, installment financing, and venture capital under the Specialized Credit Finance Business Act; |
| 3. | Transactions arising from business of foreign exchange under the Foreign Exchange Transactions Act (hereinafter referred to as the "foreign exchange transaction"); |
| 6. | Transactions arising from business under subparagraphs 1 through 3 of Article 13 of the Act on Online Investment-Linked Financial Business and the Protection of Users. |
| (2) | "Alternative to cash or checks prescribed by Presidential Decree at the place of business of a casino business operator" in subparagraph 2 (c) of Article 2 of the Act means a chip used for betting in a casino determined and publicly notified by the Minister of Culture, Sports and Tourism pursuant to Article 25 of the Tourism Promotion Act. |
[This Article Wholly Amended on Nov. 11, 2008]
[Title Amended on Mar. 23, 2021]
| Article 4 (Scope of Virtual Assets) |
“Assets prescribed by Presidential Decree” in subparagraph 3 (g) of Article 2 of the Act means the following: | 2. | Gift certificates issued and stored for use in mobile devices such as cellular phones, on which an amount of money or the quantity of goods or services is specified by issuers; |
| 3. | Others equivalent to subparagraphs 1 and 2, determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit (hereinafter referred to as the "Commissioner of the Korea Financial Intelligence Unit"), in consideration of the types and characteristics of transactions. |
[This Article Newly Inserted on Mar. 23, 2021]
| Article 5 (Duties of Korea Financial Intelligence Unit) |
| (1) | “Duties prescribed by Presidential Decree” in Article 3 (1) 7 of the Act means the following: <Amended on Nov. 11, 2008; Aug. 6, 2013; Jun. 25, 2019; Mar. 23, 2021> |
| 1. | Investigation and research on the trend of money laundering and financing of terrorism and countermeasures; |
| 2. | Provision of education, training and other consulting services for financial companies, etc. to tackle money laundering and the financing of terrorism; |
| 3. | Promotion of cooperation and exchange of information domestically and internationally to tackle money laundering and the financing of terrorism. |
| (2) | The Commissioner of the Korea Financial Intelligence Unit shall build a computer system necessary to efficiently report, manage and utilize information reported by financial companies, etc. pursuant to Article 4-2 (1) and (2) of the Act and specified financial transaction information referred to in Article 10 (1) of the Act (hereinafter referred to as "specified financial transaction information"), and shall prepare necessary measures for protection and security of such computer system. <Amended on Sep. 27, 2005; Aug. 6, 2013; Feb. 26, 2019; Mar. 23, 2021> |
| (3) | The Commissioner of the Korea Financial Intelligence Unit may establish and organize a consultative body comprised of public officials belonging to the Korea Financial Intelligence Unit, the Prosecutors' Office, the Corruption Investigation Office for High Ranking Officials, the Korean National Police Agency, the Korea Coast Guard, the Ministry of the Interior and Safety, the National Tax Service, the Korea Customs Service, the National Election Commission, the Financial Services Commission, and the National Intelligence Service, to consult and coordinate on the following matters: <Amended on Feb. 26, 2019; Mar. 23, 2021> |
| 1. | Risk assessment of money laundering and financing of terrorism and review of countermeasures at the national level; |
| 3. | Matters necessary for the efficient operation of the Korea Financial Intelligence Unit; |
| 4. | Other matters for which consultation and coordination is deemed necessary by the Commissioner of the Korea Financial Intelligence Unit, among the duties of the Korea Financial Intelligence Unit under Article 3 (1) of the Act. |
| (4) | The Commissioner of the Korea Financial Intelligence Unit may determine and publicly notify the details of the following matters, taking into account recommendations by international agreement and international organizations with respect to prevention of money laundering and prohibition of financing of terrorism: <Newly Inserted on Mar. 26, 2010; Nov. 13, 2013; Jun. 25, 2019> |
| (5) | Details necessary for the operation, etc. of a consultative body under paragraph (3) shall be determined by the Commissioner of the Korea Financial Intelligence Unit. <Newly Inserted on Feb. 26, 2019> |
| Article 6 Deleted. <Nov. 13, 2013> |
| Article 7 (Method for Reporting on Transactions of Suspected Illegal Assets) |
| (1) | A financial company, etc. that files a report pursuant to Article 4 (1) of the Act shall report the matters provided in the following subparagraphs by using documents, electronic recording media or other methods determined by the Commissioner of the Korea Financial Intelligence Unit according to the form determined by the Commissioner of the Korea Financial Intelligence Unit: <Amended on Sep. 27, 2005; Mar. 26, 2010; Aug. 6, 2013; Nov. 13, 2013; Mar. 23, 2021> |
| 1. | Name and location of the reporting financial companies, etc.; |
| 2. | Date and place of the financial transaction, etc. subject to reporting; |
| 3. | Other party to the financial transaction, etc. subject to reporting; |
| 4. | Details of the financial transaction, etc. subject to reporting; |
| 6. | Other necessary matters determined by the Commissioner of the Korea Financial Intelligence Unit to analyze the financial transaction, etc. subject to reporting. |
| (2) | Deleted. <Jun. 25, 2019> |
| (3) | Deleted. <Jun. 25, 2019> |
[Title Amended on Jun. 15, 2019]
| Article 8 (Provision of Reference Examples for Financial Transactions Subject to Reporting) |
The Commissioner of the Korea Financial Intelligence Unit may provide financial companies, etc. with the types of transactions placed at higher risk of money laundering and financing of terrorism, such as large cash transactions that have neither obvious economic rationality nor legitimate purposes, transactions conducted through accounts opened in others' names, etc., to help them determine whether financial transactions, etc. handled by financial companies, etc. fall under those referred to in Articles 4 (1) and 4-2 (2) of the Act. <Amended on Sep. 27, 2005; Nov. 11, 2008; Aug. 6, 2013; Nov. 13, 2013; Mar. 23, 2021> [Title Amended on Mar. 23, 2021]
| Article 8-2 (Reference Amount Subject to Reporting of Large Cash Transactions) |
| (1) | "Amount prescribed by Presidential Decree" in the main clause, with the exception of the subparagraphs, of Article 4-2 (1) of the Act means 10 million won. <Amended on Aug. 6, 2013; Apr. 30, 2019> |
| (2) | The amount referred to in paragraph (1) shall be calculated by adding up the amounts paid or received by financial companies, etc. based on financial transactions, etc. on its first day of trading in the name of the same person: Provided, That where a casino business operator (hereinafter referred to as "casino business operator") under subparagraph 1 (m) of Article 2 of the Act engages in making financial transactions, etc. falling under subparagraph 2 (c) of that Article, it shall be calculated based on the amount of money paid or received for each transaction. <Amended on Nov. 11, 2008; Aug. 6, 2013; Mar. 23, 2021> |
| (4) | In adding up the amounts pursuant to paragraph (2), the amounts provided in the following subparagraphs shall be excluded therefrom: |
| 1. | The remittance (including deposits without passbook) of an amount not more than one million won; |
| 2. | The amount of purchase or sale of any foreign currency equivalent to not more than one million won; |
| 3. | The amount of receipt or payment of public imposts, etc. determined by the Commissioner of the Korea Financial Intelligence Unit. |
[This Article Newly Inserted on Sep. 27, 2005]
| Article 8-3 (Means of Payment equivalent to Cash) |
"Means of payment prescribed by Presidential Decree" in the main clause, with the exception of the subparagraphs, of Article 4-2 (1) of the Act means a check the face value of which exceeds one million won, among checks paid or received by a casino business operator where it engages in making financial transactions, etc. falling under subparagraph 2 (c) of Article 2 of the Act: Provided, That the same shall not apply to cases where the casino business operator records and manages the real name and serial number of a check after identifying the real name while it pays in or receives the check. <Amended on Aug. 6, 2013; Mar. 23, 2021> [This Article Newly Inserted on Nov. 11, 2008]
[Title Amended on Aug. 6, 2013]
[Previous Article 8-3 moved to Article 8-5 <Nov. 11, 2008>]
| Article 8-4 (Financial Companies Excluded from Exceptions to Reporting of Large Cash Transactions) |
| 1. | Casino business operators; |
| 1-2. | Virtual asset service providers defined in subparagraph 1 (n) of Article 2 of the Act (hereinafter referred to as "virtual asset service provider"); |
| 2. | Persons determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit as highly likely to be used for money laundering and financing of terrorism. |
[This Article Wholly Amended on Feb. 26, 2019]
| Article 8-5 Deleted. <Feb. 26, 2019> |
| Article 8-6 (Methods for Reporting Large Cash Transactions) |
| (1) | A financial company, etc. which files a report pursuant to Article 4-2 (1) of the Act shall report the matters falling under each of the following subparagraphs by using online means, documents, electronic recording media or other devices determined by the Commissioner of the Korea Financial Intelligence Unit according to the form determined by the Commissioner of the Korea Financial Intelligence Unit: <Amended on Aug. 6, 2013> |
| 1. | Name and location of the reporting financial companies, etc.; |
| 2. | Date and place when and where payment or receipt of cash has been made; |
| 3. | Other party to the payment or receipt of cash; |
| 4. | Details of the payment or receipt of cash; |
| 5. | Other matters determined by the Commissioner of the Korea Financial Intelligence Unit as necessary for analyzing the payment or receipt of cash. |
[This Article Newly Inserted on Sep. 27, 2005]
[Moved from Article 8-4 <Nov. 11, 2008>]
| Article 8-7 (Designation of Intermediary) |
| (1) | When the Commissioner of the Korea Financial Intelligence Unit has designated an intermediary under Article 4-2 (3) of the Act (hereinafter referred to as an "intermediary"), he or she shall publicly notify it. |
| (2) | Financial companies, etc. may report cash transactions in large amount to the Commissioner of the Korea Financial Intelligence Unit through an intermediary. <Amended on Aug. 6, 2013> |
| (3) | The Commissioner of the Korea Financial Intelligence Unit may determine the standards for dealing with the business of an intermediary and have such intermediary determine the detailed standards for its operation. |
| (4) | Where the head of an intermediary has determined the detailed standards for operation pursuant to paragraph (3), he or she shall give notice of such details to the Commissioner of the Korea Financial Intelligence Unit without delay. |
[This Article Newly Inserted on Nov. 11, 2008]
| Article 9 (Measures by Financial Companies) |
| (1) | A financial company, etc. shall give notice of appointment or dismissal of a person responsible for reporting under Article 5 (1) 1 of the Act to the Commissioner of the Korea Financial Intelligence Unit. <Amended on Aug. 6, 2013; Jun. 25, 2019> |
| (2) | "Matters prescribed by Presidential Decree" in Article 5 (3) 3 of the Act means the following: <Newly Inserted on Jun. 25, 2019; Mar. 23, 2021; Oct. 5, 2021> |
| 1. | Matters regarding the establishment and operation of a monitoring system for financial transactions, etc. necessary for effective reporting under Article 4 or 4-2 of the Act; |
| 2. | Matters regarding the procedures and methods for evaluating the risks of money laundering and financing of terrorism to verify the identity of customers under the subparagraphs of Article 5-2 (1) of the Act; |
| 3. | Matters regarding the procedures and methods to be followed by financial companies, etc. if they use other finance companies, etc. for verifying the identity of customers under Article 5-2 of the Act; |
| 4. | Matters regarding the procedures and methods for evaluating the risks of money laundering and financing of terrorism before the provision of new financial products and services; |
| 5. | Matters regarding the procedures and methods to adopt when financial companies, etc. monitor and control how their subsidiaries or branch offices located outside the Republic of Korea meet their obligations to prevent money laundering and financing of terrorism; |
| 6. | Other matters determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit to efficiently prevent money laundering and financing of terrorism. |
[Title Amended on Jun. 25, 2019]
| Article 10 Deleted. <Feb. 27, 2018> |
| Article 10-2 (Scope of Application of Customer Due Diligence) |
| (1) | Responsibility for verification prescribed in the subparagraphs of Article 5-2 (1) of the Act (hereinafter referred to as "identity verification") shall be applicable to financial transactions, etc.: Provided, That financial companies, etc. may be exempt from responsibility for full or partial verification under Article 5-2 (1) 1 of the Act as determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit where they conduct the financial transactions, etc. determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit, such as financial transactions, etc. where it is not proper to perform identity verification by its nature or where there is low risk of money laundering and financing of terrorism. <Amended on Nov. 11, 2008; Aug. 6, 2013; Apr. 30, 2019; Mar. 23, 2021> |
| (2) | Opening of a new account under the provision, with the exception of the items, of Article 5-2 (1) 1 of the Act means to conclude a contract with financial companies, etc. for the purpose of commencing the financial transactions, etc. provided for in paragraph (1), and one-time financial transactions, etc. means financial transactions, etc. with customers who do not conclude a contract for the purpose of continuing to enter into transactions with financial companies, etc. <Amended on Feb. 26, 2019; Mar. 23, 2021> |
| (3) | Where the identity information seems inaccurate, the relevant financial company, etc. shall verify the identity of such customers with reliable documents, information or other materials. In such cases, the relevant financial company, etc. shall reflect the materials related to such verification and the methods thereof in the work guidelines referred to in the latter part, with the exception of the subparagraphs, of Article 5-2 (1) of the Act to put them into practice. <Amended on Nov. 11, 2008; Aug. 6, 2013; Dec. 30, 2015; Feb. 26, 2019> |
[This Article Newly Inserted on Sep. 27, 2005]
[Title Amended on Nov. 11, 2008]
| Article 10-3 (Amount of One-Time Financial Transactions) |
| (1) | "Amount prescribed by Presidential Decree" in the provisions, with the exception of the items, of Article 5-2 (1) 1 of the Act means the amounts under the following classification: <Amended on Nov. 11, 2008; Aug. 6, 2013; Dec. 30, 2015; Feb. 26, 2019; Mar. 23, 2021> |
| 1. | Transactions under subparagraph 2 (c) of Article 2 of the Act: Three million won or the amount denominated in another currency equivalent thereto; |
| 1-2. | Virtual asset transactions under subparagraph 2 (d) of Article 2 of the Act (hereinafter referred to as "virtual asset transaction"): Virtual assets equivalent to one million won. In such cases, the standards for converting virtual assets into cash shall be determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit; |
| 2. | In the case of a wire transfer under Article 5-3 of the Act: One million won or the amount denominated in another currency equivalent thereto; |
| 3. | In the case of one-time financial transactions, etc.: An amount according to the following classifications: |
| (a) | In the case of foreign exchange transactions made in a foreign currency: USD 10,000 or the amount denominated in another currency equivalent thereto; |
| (b) | In the case of financial transactions, etc. other than those specified in item (a): 10 million won. |
| (2) | In calculating the amount of financial transactions, etc. stipulated in paragraph (1), where there is a difference between the nominal value of assets subject to the financial transactions, etc. and the actual market price thereof, it shall be computed on a basis of the actual market price. <Amended on Mar. 23, 2021> |
[This Article Newly Inserted on Sep. 27, 2005]
[Title Amended on Mar. 23, 2021]
| Article 10-4 (Matters regarding Identity of Customers) |
"Matters relating to the customer’s personal information prescribed by Presidential Decree" in Article 5-2 (1) 1 (a) of the Act means matters under the following classification: <Amended on Aug. 6, 2013; Dec. 30, 2015; Feb. 27, 2018; Apr. 30, 2019; Mar. 23, 2021> | 1. | For an individual (including an individual who conducts financial transactions, etc. by indicating that he or she is acting for another individual, corporation, or any other organization): real name (in the case of electronic financial transactions, referring to matters determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit for customers determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit, such as their name, date of birth, and gender, instead of their real name), address, contact information (referring to telephone number and electronic mail address; hereinafter the same shall apply); |
| 2. | For a profit-making corporation: real name, business category, the location of its principal office and places of business, contact information, and the name, the date of birth and the nationality of its representative; |
| 3. | For a non-profit corporation or any other organization: real name, the purpose of its establishment, the seat of its principal office, contact information, and the name, the date of birth and the nationality of its representative; |
| 4. | For a foreigner or foreign organization: matters corresponding to those specified in subparagraphs 1 through 3, nationality, and the residence or location of its office in Korea. |
[This Article Newly Inserted on Sep. 27, 2005]
[Title Amended on Dec. 30, 2015]
| Article 10-5 (Verification of Identity of Actual Owners) |
| (1) | Where any person ultimately governs, or controls, an individual customer, etc. who makes a promise or agreement to conduct financial transactions, etc. under his or her real name pursuant to the main clause of Article 5-2 (1) 1 (b) of the Act (hereafter in this Article referred to as "actual owner"), a financial company, etc. shall verify the real name, and the nationality (limited to where the actual owner is a foreigner; hereafter in this Article the same shall apply), of such actual owner. <Amended on Mar. 23, 2021> |
| (2) | Where any person who is an actual owner of a customer which is a corporation or organization falling under any of the following, a financial company, etc. shall verify the name, the date of birth, and the nationality of such actual owner pursuant to the proviso of Article 5-2 (1) 1 (b) of the Act; in such cases, where the financial company, etc. are unable to verify the identity of a person falling under subparagraph 1, the financial company, etc. shall verify the identity of a person falling under subparagraph 2; and where the financial company, etc. are unable to verify the identity of a person falling under subparagraph 2, the financial company, etc. shall verify the identity of a person falling under subparagraph 3, respectively: <Amended on Oct. 5, 2021> |
| 1. | A person (hereafter in this Article referred to as "shareholder, etc.") who owns at least 25 percent of the issued and outstanding voting shares (including the total amount of investment; hereafter in this Article the same shall apply) of the relevant corporation or organization or other investment stakes (including depository receipts related to its shares or other investment stakes; hereafter in this Article the same shall apply); |
| 2. | Any of the following persons: |
| (a) | A shareholder, etc. who holds the largest portion of shares or other investment stakes, based on the total number of the issued and outstanding voting shares of the relevant corporation or organization; |
| (b) | A shareholder, etc. who has appointed a majority of representatives, managing members, executive officers, etc. solely or by agreement, contract, etc. with other shareholders, etc.; |
| (c) | A person who substantially controls the relevant corporation or organization if he or she is clearly different from shareholders, etc. falling under items (a) and (b); |
| 3. | The representative of the relevant corporation or organization. |
| (3) | Notwithstanding the latter part, with the exception of the subparagraphs, of paragraph (2), where a shareholder, etc. falling under subparagraph 1 or 2 (a) of that paragraph is another corporation or organization, a financial company, etc. may verify the name, the date of birth, and the nationality of any of the following persons who may exercise dominant influence over important managerial matters of other corporations or organizations. In such cases, where a person falling under subparagraph 1 or 2 (a) is other corporations or organizations, a financial company, etc. may verify the name, the date of birth, and the nationality of any of the following persons in relation to other corporations or organizations: |
| 1. | A shareholder, etc. who owns at least 25 percent of the issued and outstanding voting shares; |
| 2. | Any of the following persons: |
| (a) | A shareholder, etc. who holds the largest portion of shares or other investment stakes, based on the total number of the issued and outstanding voting shares of the relevant corporation or organization; |
| (b) | A shareholder, etc. who has appointed a majority of representatives, managing members, executive officers, etc. solely or by agreement, contract, etc. with other shareholders, etc.; |
| (c) | A person who substantially controls the relevant corporation or organization if he or she is clearly different from shareholders, etc. falling under items (a) and (b). |
| (4) | In applying paragraphs (2) and (3), where there are a multiple number of persons falling under paragraph (2) 1 or 2, or (3) 1 or 2, a financial company, etc. shall verify the identity of a shareholder, etc. who holds the largest number of the issued and outstanding voting shares or other investment stakes: Provided, That where deemed necessary to prevent money laundering or financing of terrorism through financial transactions, etc., a financial company, etc. may verify the identity of all or some of persons falling under paragraph (2) 1 or 2, or (3) 1 or 2. <Amended on Mar. 23, 2021> |
| (5) | Notwithstanding paragraphs (2) through (4), where a customer corporation or organization falls under any of the following, a financial company, etc. need not verify the identity thereof under paragraphs (2) and (3): <Amended on Feb. 26, 2019> |
| 1. | The State or a local government; |
| 2. | Any of the following public organizations: |
| (c) | Local government-directly operated enterprises, local government-invested public corporations and local public agencies established under the Local Public Enterprises Act; |
| (d) | Any of the following corporations designated by the Commissioner of the Korea Financial Intelligence Unit as deemed unlikely to engage in money laundering and financing of terrorism: |
| (i) | A corporation invested, contributed, or subsidized by the Government pursuant to the statutes; |
| (ii) | A corporation the establishment of which has been provided for in the statutes, not requiring authorization or permission from the competent Minister; |
| 3. | Other financial companies, etc. (excluding persons falling under any subparagraph of Article 8-4); |
[This Article Newly Inserted on Dec. 30, 2015]
[Previous Article 10-5 moved to Article 10-6 <Dec. 30, 2015>]
| Article 10-6 (Procedure for Identity Verification) |
| (1) | Each financial company, etc. shall perform identity verification before conducting financial transactions, etc.: Provided, That where the Commissioner of the Korea Financial Intelligence Unit prescribes that it is inevitable due to the nature, etc. of financial transactions, etc., the financial company, etc. may perform identity verification after conducting financial transactions, etc. <Amended on Aug. 6, 2013; Mar. 23, 2021> |
| (2) | After performing identity verification under paragraph (1), a financial company, etc. shall continue perform identity verification periodically while the transaction with the customer is maintained. In such cases, the financial company, etc. shall establish and operate the customer verification cycle after assessing the risks associated with money laundering and financing of terrorism, in consideration of customer behavior in transactions, etc. <Newly Inserted on Jun. 25, 2019> |
| (3) | After the identity of a customer has been verified under Article 5-2 (1) 1 of the Act, each financial company, etc. may omit the verification of the identity of the same customer where it conducts a financial transaction, etc. again with the customer (only applicable where the period under paragraph (2) has yet to come): Provided, That where the previously verified matters are likely to be in discord with facts or where the validity thereof is doubtful, it shall verify the identity of the customer. <Amended on Aug. 6, 2013; Jun. 25, 2019; Mar. 23, 2021> |
| (4) | Except as provided in paragraphs (1) through (3), matters necessary for procedures for the identity verification shall be determined by the Commissioner of the Korea Financial Intelligence Unit. <Amended on Feb. 27, 2018; Jun. 25, 2019> |
[This Article Newly Inserted on Sep. 27, 2005]
[Title Amended on Nov. 11, 2008]
[Moved from Article 10-5; previous Article 10-6 moved to Article 10-7 <Dec. 30, 2015>]
| Article 10-7 (Refusal of Transactions Resulting from Procedures for Identity Verification) |
"Cases prescribed by Presidential Decree" in Article 5-2 (4) 3 of the Act means a case in which a customer, who is a virtual asset service provider, is revealed to have conducted financial transactions, etc. with a person subject to restrictions on financial transactions, etc. under Article 4 (1) of the Act on Prohibition against the Financing of Terrorism and Proliferation of Weapons of Mass Destruction (excluding transactions conducted with permission obtained from the Financial Services Commission under paragraph (4) of that Article). [This Article Newly Inserted on Mar. 23, 2021]
[Previous Article 10-7 moved to Article 10-8 <Mar. 23, 2021>]
| Article 10-8 (Thresholds for Wire Transfers Subject to Provision of Information) |
"The amount prescribed by Presidential Decree” in the provisions, with the exception of the subparagraphs, of Article 5-3 (1) of the Act means the amount exceeding any of the following amounts: | 1. | In cases of domestic wire transfers: KRW one million or the amount denominated in any other currency equivalent thereto; |
| 2. | In cases of cross-border wire transfers: USD 1,000 or the amount denominated in any other currency equivalent thereto. |
[This Article Newly Inserted on Nov. 13, 2013]
[Moved from Article 10-7; previous Article 10-8 moved to Article 10-9 <Mar. 23, 2021>]
| Article 10-9 (Methods of Preserving Information Regarding Financial Transactions) |
| (1) | Where a financial company, etc. files a report under Article 4 (1) of the Act, it shall preserve the relevant report and the data specified in the items of Article 5-4 (1) 1 of the Act separately from the data on other financial transactions, etc. <Amended on Mar. 23, 2021> |
| (2) | A financial company, etc. shall preserve the relevant data and information under the subparagraphs of Article 5-4 (1) of the Act in the form of documents, microfilms, disks or magnetic tapes or other electronic data processing medium. |
| (3) | A financial company, etc. shall preserve the data and information under the subparagraphs of Article 5-4 (1) of the Act in the location of its main office: Provided, That such data and information may be preserved in another place, if it is significantly difficult to preserve those in the location of the main office. |
| (4) | "Date prescribed by Presidential Decree" in Article 5-4 (2) 5 of the Act means the date on which financial transactions, etc. under Article 3 (1) are terminated for any of the following reasons: <Amended on Mar. 23, 2021> |
| 1. | Expiration of the contract term in accordance with related statutes or regulations, terms and conditions, agreements, etc.; |
| 2. | Exercise of the termination, rescission or cancellation right; |
| 3. | Extinction of a claim due to repayment, etc.; |
| 4. | Other reasons determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit. |
| (5) | Except as provided in paragraphs (1) through (4), methods and places of preserving the data and information under the provision, with the exception of the subparagraphs, of Article 5-4 (1) of the Act, and other necessary matters shall be determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit. |
[This Article Newly Inserted on Jun. 25, 2019]
[Title Amended on Mar. 23, 2021]
[Moved from Article 10-8 <Mar. 23, 2021>]
| Article 10-10 (Provision of Information During Transfer of Virtual Assets) |
| 1. | The information shall be provided where a virtual asset service provider transfers any virtual assets worth at least one million won to another virtual asset service provider in accordance with the conversion standards determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit; |
| 2. | A virtual asset service provider who transfers his or her virtual assets shall provide the following information to the virtual assets service provider receiving the virtual assets: |
| (a) | Names of virtual assets-transferring and receiving customers (in the case of a corporation and organization, referring to the name of the corporation, organization, or its representative); |
| (b) | Virtual asset addresses of virtual assets-transferring and receiving customers (referring to electronically created unique identification numbers to manage the transmission records and storage details of the virtual assets); |
| 3. | Resident registration number (referring to the corporate registration number in the case of a corporation), passport number, and alien registration number (limited to a foreigner) of a virtual assets-transferring customer shall be provided, upon request of the Commissioner of the Korea Financial Intelligence Unit or the virtual asset service provider to whom the virtual assets are transferred; |
| 4. | The information referred to in subparagraph 2 shall be provided when the virtual assets are transferred, and the information referred to in subparagraph 3 shall be provided within three business days from the date of request of such information. |
[This Article Newly Inserted on Mar. 23, 2021]
| Article 10-11 (Registration by Virtual Asset Service Providers) |
| (1) | A person who intends to file for registration under Article 7 (1) of the Act shall submit such registration determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit, along with the following documents to the Commissioner of the Korea Financial Intelligence Unit: |
| 1. | Articles of incorporation, or equivalent business management regulations; |
| 2. | Business promotion plan; |
| 3. | Data regarding the certification of information security management systems (hereinafter referred to as "certification of information security management systems") under Article 5-2 (1) 3 (e) (ii) of the Act; |
| 4. | Data regarding real-name verified checking accounts under the main clause of Article 7 (3) 2 of the Act (hereinafter referred to as "real-name verified checking account"); |
| 5. | Other data determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit to be necessary for a virtual asset service provider to file for registration. |
| (2) | “Matters prescribed by Presidential Decree such as location of a place of business and contact information" in Article 7 (1) 2 of the Act means the following: |
| 1. | Location of a place of business and contact information; |
| 2. | Nationality and name (in the case of a corporation, referring to the nationality and name of its representative and executive officers); |
| 3. | E-mail address and Internet domain name; |
| 4. | Location of the host server; |
| 5. | Other matters equivalent to subparagraphs 1 through 4, determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit. |
| (3) | A person who intends to file for registration of modification pursuant to Article 7 (2) of the Act shall submit registration of modification determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit to the Commissioner of the Korea Financial Intelligence Unit, along with documents evidencing such modification, within 30 days from the date such modification is made. |
[This Article Newly Inserted on Mar. 23, 2021]
| Article 10-12 (Non-Acceptance of Registration) |
| (1) | Where not accepting the registration pursuant to Article 7 (3) of the Act, the Commissioner of the Korea Financial Intelligence Unit shall notify the person who has filed for such registration of such fact and the grounds therefor in writing (including electronic documents). |
| (2) | "Financial company., etc. prescribed by Presidential Decree" in the main clause of Article 7 (3) 2 of the Act means the following: |
[This Article Newly Inserted on Mar. 23, 2021]
| Article 10-13 (Ex Officio Cancellation of Registration) |
| (1) | Where canceling registration or registration of modification ex officio pursuant to Article 7 (4) of the Act, the Commissioner of the Korea Financial Intelligence Unit shall notify the person who has filed for such registration of such fact and the grounds therefor in writing (including electronic documents). |
| (2) | "Cases prescribed by Presidential Decree" in the proviso of Article 7 (4) 1 of the Act means a case in which a decision on the renewal of the certification of information protection and management systems for which a virtual asset service provider has filed an application is not made for any cause not attributable to the virtual asset service provider. |
| (3) | "Cases prescribed by Presidential Decree, such as filing for registration or registration of modification by fraud or other improper means" in Article 7 (4) 4 of the Act means a case in which registration or registration of modification is filed with the Commissioner of the Korea Financial Intelligence Unit by fraud or other improper means. |
[This Article Newly Inserted on Mar. 23, 2021]
| Article 10-14 (Suspension of Business) |
| (1) | In issuing an order to suspend business pursuant to Article 7 (5) of the Act, the Commissioner of the Korea Financial Intelligence Unit shall comprehensively take into consideration the following matters: |
| 1. | Motives and background of violations; |
| 2. | Types and nature of violations; |
| 3. | Effects and impacts of violations; |
| 4. | Efforts to correct the violation of laws. |
| 2. | Failure to receive supervision, follow orders and guidelines, conduct inspections, or take measures pursuant to Article 15 (1) and (6) of the Act, or involvement in any refusal, obstruction, or evasion thereof. |
[This Article Newly Inserted on Mar. 23, 2021]
| Article 10-15 (Term of Validity of Registration) |
| (2) | A person who intends to have his or her registration renewed pursuant to the latter part of Article 7 (6) of the Act shall submit registration of renewal determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit, along with the following documents, with the Commissioner of the Korea Financial Intelligence Unit at least 45 days before expiration of the term of validity: |
| 1. | Data regarding the certification of information security management systems; |
| 2. | Data regarding real-name verified checking accounts. |
| (3) | Where deemed necessary for the renewal of registration under the latter part of Article 7 (6) of the Act, the Commissioner of the Korea Financial Intelligence Unit may notify in advance the relevant virtual asset service provider of the fact that renewal will not be granted if registration of renewal is not filed until the end of expiration of the term of validity and of matters regarding the relevant procedures. |
[This Article Newly Inserted on Mar. 23, 2021]
| Article 10-16 (Disclosure of Information regarding Registration) |
Where disclosing information regarding registration or measures taken by the Commissioner of the Korea Financial Intelligence Unit pursuant to Article 7 (7) of the Act, the Commissioner of the Korea Financial Intelligence Unit shall publish them on the website of the Korea Financial Intelligence Unit. [This Article Newly Inserted on Mar. 23, 2021]
| Article 10-17 (Entrustment of Duties Related to Registration) |
| (2) | The Governor of the Financial Supervisory Service shall report the results of handling the duties entrusted under paragraph (1) to the Commissioner of the Korea Financial Intelligence Unit, as determined by the Commissioner of the Korea Financial Intelligence Unit. |
[This Article Newly Inserted on Mar. 23, 2021]
| Article 10-18 (Opening of Real-Name Verified Checking Accounts) |
| 2. | Certification of an information security management system; |
| 3. | Separate management of the details of transactions for each customer of a virtual asset service provider. |
| (2) | Where intending to open real-name verified checking accounts, a financial company, etc. shall check the procedures and business guidelines for virtual asset service providers under Article 5 (1) 2 of the Act to identify, analyze, and assess the risks associated with financial transactions, etc. with a virtual asset service provider, such as money laundering and financing of terrorism. |
| (3) | If deemed necessary for preventing money laundering and financing of terrorism, a financial company, etc. may open real-name verified checking accounts on condition that financial transactions, etc. are made after registration or registration of modification under Article 7 (1) or (2) of the Act is accepted. |
| (4) | Real-name verified checking accounts may be used until the expiration date of the term of validity of registration or registration of renewal under Article 7 (6) of the Act. |
[This Article Newly Inserted on Mar. 23, 2021]
| Article 10-19 (Details for Duties Such as Registration) |
Details necessary for the acceptance of registration or registration of modification, ex officio cancellation, suspension of business, renewal, disclosure of information, entrustment of duties, opening of real-name verified checking accounts, etc. under Articles 10-11 through 10-18 shall be determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit. [This Article Newly Inserted on Mar. 23, 2021]
| Article 10-20 (Measures to Be Taken by Virtual Asset Service Providers) |
"Measures prescribed by Presidential Decree, such as managing each customer's transaction details separately" in Article 8 of the Act means the following: <Amended on Oct. 5, 2021> | 1. | Separate management of the details of transactions by customer; |
| 3. | Restrictions on transactions with customers for whom verification under the subparagraphs of Article 5-2 (1) of the Act has not been completed; |
| 4. | No transaction with a virtual asset service provider who fails to perform his or her duty to file for registration or registration of modification under Article 7 (1) and (2) of the Act; |
| 5. | In order to efficiently prevent money laundering and financing of terrorism, restrictions shall be developed and implemented on transactions involving the following: |
| (a) | Acting as a broker, an intermediary, or an agent for the purchase and sale or exchange of virtual assets issued by any virtual asset service provider or a person specially related to him or her (referring to a specially related person under the subparagraphs of Article 34 (4) of the Enforcement Decree of the Commercial Act); |
| (b) | Purchasing and selling or exchanging virtual assets by an executive officer or employee of any virtual asset service provider through the relevant virtual asset service provider; |
| (c) | Any virtual asset service provider essentially conducting transactions as the counterparty while acting as a broker, an intermediary, or an agent for the purchase and sale or exchange of virtual assets; |
| 6. | Other measures equivalent to those prescribed in subparagraphs 1 through 5, which are determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit, to increase transparency in virtual asset transactions. |
[This Article Newly Inserted on Mar. 23, 2021]
| Article 11 (Notification of Records of Foreign Exchange Transactions) |
| (2) | The scope of records subject to notification pursuant to Article 9 (2) of the Act shall be as follows: <Amended on Sep. 27, 2005; Feb. 29, 2008; Mar. 23, 2021> |
| 2. | Records which are necessary for the Korea Financial Intelligence Unit to perform its services and determined by the head of foreign exchange information concentration agency in consultation with the Minister of Strategy and Finance, from among those concentrated to the head of foreign exchange information concentration agency under Article 21 of the Foreign Exchange Transactions Act. |
| (3) | The Governor of the Bank of Korea, the heads of customs offices and the head of foreign exchange information concentration agency shall notify, in an electronic document, the Commissioner of the Korea Financial Intelligence Unit of the records referred to in paragraph (2) every month not later than the tenth day of the following month: Provided, That where the Commissioner of the Korea Financial Intelligence Unit determines separately the time, methods, etc. of such notification in consultation with the Governor of the Bank of Korea, the heads of customs offices and the head of foreign exchange information concentration agency, respectively, it shall prevail. |
| Article 11-2 (Provision of Information to Investigative Agencies) |
"Information prescribed by Presidential Decree” in Article 10 (1) 1 and 2 of the Act means the following information, which is related to illegal property, money laundering or financing of terrorism: <Amended on Apr. 5, 2016; Mar. 23, 2021> | 1. | Information to be provided to the Prosecutor General and the Director-General of the Corruption Investigation Office for High-ranking Officials: Information that is deemed necessary to investigate criminal cases; |
| 2. | Information to be provided to the Minister of the Interior and Safety and the Commissioner of the National Tax Service: |
| (a) | Information falling under any of the following, which is deemed necessary to conduct an investigation into alleged tax evasion: |
| (i) | The relevant information, where information (limited to information related to alleged tax evasion) reported under Article 4 (1) of the Act and information reported under Article 4-2 of the Act are overlapped or closely related to each other; |
| (ii) | The relevant information, where a person is suspected of tax evasion due to high frequency of cash transactions or the excessive amount thereof, compared with the turnover of his or her business or the scale of his or her assets or income; |
| (iii) | The relevant information, where the offshore tax evasion is likely to occur; |
| (iv) | The relevant information, where the Minister of the Interior and Safety and the Commissioner of the National Tax Service provide reasonable grounds to suspect that tax evasion is likely to occur; |
| (b) | Information that is deemed necessary to collect taxes from delinquent taxpayers; |
| 3. | Information to be provided to the Commissioner of the Korea Customs Service: |
| (a) | Information falling under any of the following, which is deemed necessary to investigate violation of regulations concerning customs or investigate alleged evasion of customs duty: |
| (i) | The relevant information, where information (limited to information related to alleged evasion of customs duty) reported under Article 4 (1) of the Act and information reported under Article 4-2 of the Act are overlapped or closed related to each other; |
| (ii) | The relevant information, where a person is suspected of evasion of customs duty due to high frequency of cash transactions or the excessive amount thereof, compared with the scale of imports or exports; |
| (iii) | The relevant information, where a person is suspected of being invovled in illegal foreign exchange transactions, in violation of the Foreign Exchange Transactions Act; |
| (iv) | The relevant information, where the Commissioner of the Korea Customs Service provides reasonable grounds to suspect that evasion of customs duty is likely to occur; |
| (b) | Information that is deemed necessary to collect customs from delinquent taxpayers; |
| 4. | Information to be provided to the National Election Commission: Information deemed necessary to investigate violations of the Political Fund Act; |
| 5. | Information to be provided to the Financial Services Commission: Information deemed necessary to perform duties of financial supervision; |
| 6. | Information to be provided to the Director of the National Intelligence Service: Information deemed necessary to investigate persons likely to commit terrorist acts. |
[This Article Newly Inserted on Nov. 13, 2013]
| Article 12 (Provision of Specified Financial Transaction Information to Commissioner General of the Korean National Police Agency) |
"Specified financial transaction information prescribed by Presidential Decree" in Article 10 (2) of the Act means specified financial transaction information that meets the standards determined by the Commissioner of the Korea Financial Intelligence Unit in consideration of the amounts of criminal proceeds, the kinds and the nature of offenses, the status of offenders, the efficiency of investigation, etc. after consulting with the Prosecutor General, the Commissioner General of the National Police Agency, and the Commissioner General of the Korea Coast Guard. <Amended on Aug. 6, 2013; Nov. 19, 2014; Jul. 26, 2017; Mar. 23, 2021> [Title Amended on Aug. 6, 2013; Nov. 19, 2014; Jul. 26, 2017]
| Article 13 (Request by Prosecutor General for Providing Information) |
Where a request for the provision of specified financial transaction information is made by the Prosecutor General, the Director-General of the Corruption Investigation Office for High-ranking Officials, the Commissioner General of the National Police Agency, and the Commissioner General of the Korea Coast Guard, the Minister of the Interior and Safety, 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 pursuant to Article 10 (4) of the Act, documents stating the matters under the subparagraphs of Article 10 (5) shall be submitted to the Commissioner of the Korea Financial Intelligence Unit: Provided, That in case of urgency, a person may submit such documents by mail or facsimile, or in an electronic form. [This Article Wholly Amended on Mar. 23, 2021]
| Article 13-2 (Organization and Operation of Board of Review for Dissemination) |
| (1) | The Commissioner of the Korea Financial Intelligence Unit shall be the Chairperson (hereinafter referred to as the “Chairperson”) of the Board of Review for Dissemination (hereinafter referred to as the “Board”) under Article 10 (8) of the Act; and the following persons shall be its members: <Amended on Mar. 23, 2021> |
| 2. | A person appointed by the Commissioner of the Korea Financial Intelligence Unit after recommended by the Chief Justice of the Supreme Court, from among judges with at least 10 years of experiences. |
| (2) | The Chairperson shall convene meetings of the Board and preside over such meetings. |
| (3) | Where the Chairperson is unable to perform his or her duties due to a ground falling within the following cases, any member pre-appointed by the Chairperson from among the members shall act on behalf of the Chairperson. <Amended on Feb. 27, 2018> |
| 1. | Where the Chairperson's relevant position is vacant due to transfer, retirement, dismissal or the expiration of term of office until his or her successor is appointed; |
| 2. | Where the Chairperson is temporarily unable to perform his or her duties due to his or her leave, official trip or leave of absence without filling the vacancy. |
| (4) | The resolution of a meeting of the Board shall require the consent of a majority of all the incumbent members, including the Chairperson. |
| (5) | No meeting of the Board shall be disclosed. |
| (6) | The Board shall have one secretary who performs duties of the Council, and the secretary shall be appointed by the Chairperson, from among public officials belonging to the Korea Financial Intelligence Unit. |
| (7) | Details necessary for operation of the Board, other than those prescribed in paragraphs (1) through (6), shall be determined by the Chairperson. |
[This Article Newly Inserted on Nov. 13, 2013]
| Article 13-3 (Preservation and Destruction of Specified Financial Transaction Information) |
| (1) | Periods during which the Commissioner of the Korea Financial Intelligence Unit shall preserve information, etc. provided for in Article 12-2 (1) of the Act (hereafter in this Article referred to as "information, etc.") shall be as follows: <Amended on Feb. 27, 2018; Mar. 23, 2021> |
| 1. | Specified financial transaction information: 25 years; |
| 2. | Information provided pursuant to Article 5-3 (2) of the Act, data notified pursuant to Article 9 of the Act, data provided pursuant to Article 13 (1) of the Act, and information or data related to financial transactions, etc. provided pursuant to Article 13 (3) of the Act: Five years: Provided, That where the Commissioner of the Korea Financial Intelligence Unit deems that the relevant information is less likely to be used to investigate or examine criminal cases, etc., the Commissioner of the Korea Financial Unit may destroy the relevant information even before five years have passed; |
| (2) | The period referred to in paragraph (1) shall be counted from January 1 of the year following the year in which the relevant information, etc. is provided or notified. |
| (3) | The Commissioner of the Korea Financial Intelligence Unit may destroy information, etc. referred to in paragraph (1) 2 through 4 after the periods specified in paragraph (1) have elapsed, in accordance with procedures determined by the Commissioner of the Korea Financial Intelligence Unit in addition to procedures under the Public Records Management Act, in consideration of the possibility to use such information for the investigation or examination of criminal cases, etc., and the necessity of the protection of personal information, etc. pursuant to the proviso of Article 12-2 (2) of the Act. <Amended on Mar. 23, 2021> |
| (4) | The head of an institution entrusted with business pursuant to Article 15 (6) of the Act (hereinafter referred to as "entrusted institution") shall establish standards for the preservation, management and discard of information or information on financial transactions, etc. (referring to information reported by a financial company, etc. pursuant to Articles 4 and 4-2 of the Act) provided under Article 15 (7) of the Act in consultation with the Commissioner of the Commissioner of the Commissioner of the Korea Financial Intelligence Unit; and shall notify the Commissioner of the Commissioner of the Korea Financial Intelligence Unit of the current state of preserving, managing and discarding such information. <Amended on Mar. 23, 2021> |
[This Article Newly Inserted on Dec. 30, 2015]
| Article 14 (Request for Provision of Data) |
| (1) | "Data prescribed by Presidential Decree” in Article 13 (1) 4 of the Act means the following data: <Newly Inserted on Nov. 13, 2013; Feb. 17, 2021; Mar. 23, 2021> |
| (2) | Data that the Commissioner of the Korea Financial Intelligence Unit may request the head of the relevant administrative agency, etc. to provide pursuant to Article 13 (1) 5 of the Act shall be as specified in attached Table 1: <Newly Inserted on Jan. 20, 2004; Nov. 11, 2008; Aug. 6, 2013; Nov. 13, 2013; Feb. 27, 2018; Mar. 23, 2021> |
| 1. | Deleted; <Aug. 6, 2013> |
| 2. | Deleted; <Aug. 6, 2013> |
| 3. | Deleted; <Aug. 6, 2013> |
| 4. | Deleted; <Aug. 6, 2013> |
| 5. | Deleted. <Aug. 6, 2013> |
| Article 15 (Supervision and Inspection) |
| (1) | "Cases prescribed by Presidential Decree" in Article 15 (4) 3 of the Act means cases where it is deemed that financial companies, etc. undermine or, are considerably likely to undermine, order in financial transactions by failing to submit a report under Article 4 (1) or 4-2 (1) or (2) of the Act or by submitting such report falsely, in collusion with the other party to a financial transaction, etc. or the interested party thereof. <Newly Inserted on Aug. 6, 2013; Mar. 23, 2021> |
| (2) | "Those prescribed by Presidential Decree" in Article 15 (6) of the Act means the Minister of Science and ICT, the Minister of the Interior and Safety, the Minister of Trade, Industry and Energy, the Minister of SMEs and Startups, the Commissioner of the Korea Customs Service, the Jeju Special Self-Governing Province Governor, the President of the National Agricultural Cooperative Federation, the President of the National Federation of Fisheries Cooperatives, the President of the National Forestry Cooperative Federation, the President of the National Credit Union Federation of Korea, and the President of the Korea Federation of Community Credit Cooperatives. <Amended on Feb. 29, 2008; Mar. 23, 2013; Aug. 6, 2013; Nov. 19, 2014; Jul. 26, 2017; Mar. 23, 2021> |
| (3) | Pursuant to Article 15 (6) of the Act, the Commissioner of the Korea Financial Intelligence Unit shall entrust duties relating to inspections referred to in Article 11 (1) of the Act, measures referred to in Article 11 (2) 2 and 3 of the Act, and requests for measures referred to in Article 11 (3) 1 (c) through (e) and (3) 2 of the Act, in accordance with the following classifications: <Amended on Sep. 27, 2005; Feb. 29, 2008; May 6, 2009; Nov. 15, 2010; Mar. 23, 2013; Aug. 6, 2013; Nov. 19, 2014; Dec. 30, 2015; Mar. 22, 2016; Jun. 27, 2017; Jul. 26, 2017; Feb. 27, 2018; Feb. 26, 2019; Apr. 30, 2019; Jun. 25, 2019; Aug. 11, 2020; Aug. 25, 2020; Mar. 23, 2021> |
| 5. | Deleted; <Jul. 26, 2017> |
| 6. | Deleted; <Mar. 22, 2016> |
| 7. | The Governor of the Financial Supervisory Service: The following financial companies, etc.: |
| (a) | The Korea Development Bank, the Export-Import Bank of Korea, the Industrial Bank of Korea and banks under the Banking Act; |
| (c) | Financial companies, etc. defined in subparagraphs 3 through 5, 7, 13 and 14 of Article 2; |
| (g) | A cooperative under the Agricultural Cooperatives Act, a cooperative under the Fisheries Cooperatives Act, a cooperative under the Forestry Cooperatives Act, a credit union under the Credit Unions Act (limited to where the Commissioner of the Korea Financial Intelligence Unit deems it necessary to conduct an additional inspection of the relevant financial company, etc. based on the result of the inspection conducted by an entrusted institution under subparagraphs 8 through 11); |
| 11. | The President of the National Credit Union Federation of Korea: Credit unions under the Credit Unions Act; |
| 13. | The Jeju Special Self-Governing Province Governor: Casino operators conducting casino business after obtaining permission pursuant to Article 243 (1) or 244 (1) of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City. |
| (4) | Where necessary to perform entrusted duties, the head of an entrusted institution may determine the standards, plans, procedures, etc. for inspections and measures to be taken as the result of inspections. In such cases, the Commissioner of the Korea Financial Intelligence Unit may establish guidelines applicable to the standards, plans, procedures, etc. for inspection and measures to be taken as the result of inspections, and the head of the entrusted institution shall comply with such guidelines. <Amended on Aug. 6, 2013; Dec. 30, 2015> |
| (5) | Where the head of an entrusted institution has determined the standards, plans, procedures, etc. for inspection and measures to be taken as the result of inspections under the former part of paragraph (4), he or she shall give notice thereof to the Commissioner of the Korea Financial Intelligence Unit. <Amended on Aug. 6, 2013> |
| (6) | Where necessary to efficiently inspect financial companies, etc., the Commissioner of the Korea Financial Intelligence Unit may have the staff members of the Korea Financial Intelligence Unit provide necessary support to an entrusted institution in performing inspections after consulting with the head of the entrusted institution. <Amended on Aug. 6, 2013> |
| (7) | Where the head of an entrusted institution has conducted an inspection, he or she shall give notice of the results thereof to the Commissioner of the Korea Financial Intelligence Unit (including the results of measures taken after the inspection). <Amended on Aug. 6, 2013> |
[Title Amended on Aug. 6, 2013]
| Article 16 (Processing of Sensitive Information and Personally Identifiable Information) |
| 1. | Administrative affairs regarding the reporting, etc. of transactions suspected as transactions of illegal assets, etc. under Article 4 of the Act; |
| 2. | Administrative affairs regarding the reporting of large cash transactions by financial companies, etc. under Article 4-2 of the Act; |
| 3. | Administrative affairs regarding the notification of records, etc. of foreign exchange transactions under Article 9 of the Act; |
| 4. | Administrative affairs regarding the provision of information to investigative agencies, etc. under Article 10 of the Act; |
| 5. | Administrative affairs regarding the exchange, etc. of information with foreign financial intelligence services under Article 11 of the Act; |
| 6. | Administrative affairs regarding the requests, etc. for providing information under Article 13 of the Act; |
| 8. | Administrative affairs regarding business cooperation with foreign financial supervision and inspection agencies under Article 15-2 of the Act. |
[This Article Newly Inserted on Jan. 16, 2013]
| Article 17 (Criteria for Imposing Administrative Fines) |
Criteria for imposing administrative fines provided for in Article 20 (1) and (2) of the Act are as specified in attached Table 2. <Amended on Jun. 25, 2019; Mar. 23, 2021> [This Article Newly Inserted on Feb. 27, 2018]
ADDENDUM <Presidential Decree No. 17416, Nov. 24, 2001>
This Decree shall enter into force on November 28, 2001.
ADDENDA <Presidential Decree No. 17791, Dec. 5, 2002>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 18228, Jan. 20, 2004>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 18312, Mar. 17, 2004>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 19054, Sep. 27, 2005>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 8-2 through 8-4 and 10-2 through 10-6 shall take effect on January 18, 2006. |
| (2) | (Special Cases concerning Reference Amount Subject to Reporting of Large Cash Transactions) With respect to the reference amount of large cash transactions which should be reported by financial institutions, etc. (excluding a casino business operator) to the Commissioner of the Korea Financial Intelligence Unit, it shall be 50 million won from January 18, 2006 until December 31, 2007, and 30 million won from January 1, 2008 until December 31, 2009, notwithstanding the amended provisions of Article 8-2 (1). <Amended by Presidential Decree No. 21114, Nov. 11, 2008> |
ADDENDA <Presidential Decree No. 20653, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That Presidential Decrees which are amended under Article 2 of the Addenda, the amended part of Presidential Decree promulgated prior to the enforcement of this Decree, but its enforcement date has not arrived, shall enter into force on the enforcement date of the relevant Presidential Decree respectively. Article 2 Omitted.
ADDENDA <Presidential Decree No. 20947, Jul. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2009.
Articles 2 through 28 Omitted.
ADDENDUM <Presidential Decree No. 21114, Nov. 11, 2008>
This Decree shall enter into force on December 22, 2008: Provided, That the title of this Decree and the amended provisions of Article 3 (excluding paragraph (2)), 4, 6, 7, 8-5 (excluding subparagraph 5), 10-2 (3), 10-3, 14 and 16 shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 21480, May 6, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 8, 2009.
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 22104, Mar. 26, 2010>
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 6 (1) shall enter into force on June 30, 2010.
ADDENDA <Presidential Decree No. 22493, Nov. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 18, 2010.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 24317, Jan. 16, 2013>
ADDENDA <Presidential Decree No. 24435, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 24683, Aug. 6, 2013>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 24842, Nov. 13, 2013>
This Decree shall enter into force on November 14, 2013: Provided, That the amended provisions of Article 13-2 shall enter into force on February 14, 2014.
ADDENDA <Presidential Decree No. 25751, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 26818, Dec. 30, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2016.
Article 2 (Transitional Measures concerning Preservation and Destruction of Specified Financial Transaction Information)
The Commissioner of the Korea Financial Intelligence Unit shall destroy information, etc., the preservation period of which have expired under the amended provisions of Article 13-3 as at the time this Decree enters into force, by June 30, 2016 pursuant to Article 9-2 (2) of the Act.
ADDENDA <Presidential Decree No. 27038, Mar. 22, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 27090, Apr. 5, 2016>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 27205, May 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 30, 2016. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 28145, Jun. 27, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 18, 2017.
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 28152, Jun. 27, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 28218, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 28687, Feb. 27, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 10 and subparagraphs 2 and 3 of Article 10-4 shall enter into force six months after the date of the promulgation thereof. Article 2 (Transitional Measures due to Changes in Period during Which Remittance Information, etc. Should be Preserved)
Where the periods of preservation of information and data are shortened pursuant to the amended provision of Article 13-3 (1) 1, as at the time this Decree enters into force, the Commissioner of the Korea Financial Intelligence Unit shall destroy such information and data pursuant Article 9-2 (2) of the Act, by December 31, 2018, if the periods of preservation of the information and data have elapsed under the amended provision of Article 13-3 (1) 2. Article 3 (Transitional Measures concerning Supervision, Inspection, etc.)
ADDENDA <Presidential Decree No. 29601, Feb. 26, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 8-4, 8-5, 10-2 (2) and (3), and 10-3 (1) shall enter into force on July 1, 2019. Article 2 (Transitional Measures concerning Reporting of Large Cash Transactions)
Notwithstanding the amended provisions of Articles 8-4 and 8-5, the previous provisions shall apply to reporting of large cash transactions where cash, etc. is paid or received under Article 4-2 (1) of the Act before the enforcement date prescribed in the proviso of Article 1 of the Addenda. Article 3 (Transitional Measures concerning Supervision and Inspection)
ADDENDA <Presidential Decree No. 29722, Apr. 30, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2019.
Article 2 (Transitional Measures concerning Reporting of Large Cash Transactions)
Notwithstanding the amended provisions of Article 8-2 (1), the previous provisions shall apply to reporting of large cash transactions where cash is paid or received under Article 4-2 (1) of the Act before this Decree enters into force.
ADDENDUM <Presidential Decree No. 29929, Jun. 25, 2019>
This Decree shall enter into force on July 1, 2019.
ADDENDA <Presidential Decree No. 30423, Feb. 18, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 30893, Aug. 4, 2020>
Article 1 (Enforcement Date)
| (1) | This Decree shall enter into force on August 5, 2020. (Proviso Omitted.) |
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 30934, Aug. 11, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 12, 2020.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 30967, Aug. 25, 2020>
Article 1 (Enforcement Date)
| (1) | This Decree shall enter into force on August 27, 2020: Provided, That ... <omitted> ... Article 4 (2) and (8) of the Addenda shall enter into force on May 1, 2021. |
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 31380, Jan. 5, 2021>
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Presidential Decree No. 31445, Feb. 17, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 21 Omitted.
ADDENDA <Presidential Decree No. 31554, Mar. 23, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 25, 2021: Provided, That the part regarding the Ministry of the Interior and Safety or the Minister of the Interior and Safety in the amended provisions of Article 5 (3), subparagraph 2 of Article 11-2 and Article 13 shall enter into force on May 20, 2021. Article 2 (Applicability to Verification of Customers Following Changes in Amount of Single Financial Transactions)
The amended provisions of Article 10-3 (1) 3 (b) shall begin to apply to the first single financial transaction, etc. conducted after this Decree enters into force.
ADDENDA <Presidential Decree No. 32028, Oct. 5, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of subparagraph 5 of Article 10-20 shall enter into force one month after the date of its promulgation. Article 2 (Applicability to Verification of Date of Birth of Actual Owners)
The amended provisions of the former part, with the exception of the subparagraphs, of Article 10-5 (2) shall begin to apply to financial transactions, etc. conducted after this Decree enters into force. Article 3 (Applicability to Standards for Restricting Transactions by Virtual Asset Service Providers)
The amended provisions of subparagraph 5 (a) of Article 10-20 shall not apply to the virtual assets issued by a virtual asset service provider or any of its specially related persons before the enforcement date provided in the proviso of Article 1 of the Addenda until six months from the enforcement date prescribed in the proviso of that Article.
ADDENDA <Presidential Decree No. 33377, Apr. 5, 2023>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 5, 2023.
Articles 2 through 4 Omitted.