Reorganize the Roles and Responsibilities of the Board of Directors, Representative Director, Compliance Officer and Money Laundering Reporting Officer
Regulations on Qualifications, Minimum Position, etc. of Money Laundering Reporting Officer
The Korea Financial Intelligence Unit (the “KoFIU”) announced the “Plan to Strengthen Anti-Money Laundering Responsibility and Expertise” on July 20, 2023. This plan was developed after around six months of discussions with, and collecting comments from, financial companies since early this year.
The key points of the improvement plan are as follows:
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1) |
Reorganize the roles and responsibilities of key members who perform anti-money laundering (“AML”) duties to address the ambiguity of the roles and responsibilities of the board of directors (the “BOD”), management, compliance officer, and money laundering reporting officer (the “MLRO”) under the existing Act on Reporting and Using Specified Financial Transaction Information, the Enforcement Decree thereof, and relevant regulations. |
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2) |
Clarify the expertise and independence requirements in order to resolve the partial restriction on the effective implementation of the AML system due to the lack of institutional mechanisms to ensure professional and independent performance of AML duties by the MLRO. |
The improvement plan will be reflected in the amendment of the “Regulation on Anti-Money Laundering and Countering the Financing of Terrorism” (the “AML/CFT Regulation”) in the second half of this year, after collecting comments from the industry. The AML/CFT Regulation will be enforced in the first half of 2024, with an additional grace period of two years granted for the MLRO’s qualifications.
For more information, see our memo discussing the key contents of the improvement plan and the consequent implications. Please refer to the attached file for the English version of the memo.
附件 KoFIU Announces “Plan to Strengthen Anti-Money Laundering Responsibility and Expertise”.pdf
