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Newsletter | December 2013
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BANKING |
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Streamlining Plan for Monetary Sanctions |
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On September 5, 2013, the Financial Services Commission (the “FSC”) proposed new amendments (the “Amendment”) to the Regulations of Supervision and Sanctions for Financial Institutions.
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The details of the Amendment are as follows:
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Modifying Standards for Imposing Fines Rate: The basis for imposing administrative fines rate to be amended from the amount related to the applicable violation to the maximum statutory amount (the amount related to the applicable violation multiplied by the maximum statutory administrative fines rate). |
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Allowing Application of Separate Standards for Imposing Fines: Separate standards may apply if different enforcement decrees or supervisory regulations have different standards. |
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Establishing Mitigation/Exemption Grounds for Fines: The Amendment includes clauses that mitigate or exempt the penalty imposed based on the intention behind or results of the violation. |
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Modifying Base Amount for Imposing Fines: If financial business-related laws or subordinate enforcement decrees provide a fine amount for certain types of violations, such amount may be applied when calculating the fine amounts. |
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Modifying Weighted Rate and Mitigation Grounds of Imposing Fines: For repeated violations, the aggravated fine rate is modified from 10% to 20%. In order to prevent the total fine amount from being excessive, the grounds for mitigation have been expanded. |
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Modifying Exemption Grounds for Fines: The Amendment elaborated the existing exemption grounds and added new grounds for exemption in case of violations with justifiable cause such as mistake of law. |
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