The government is set to enhance its anti-money laundering, counter-terrorism financing, and proliferation financing frameworks.
The Financial Intelligence Unit (FIU) announced on September 16 that it has established and released a 'National Strategy and Policy Direction for Anti-Money Laundering, Counter-Terrorism Financing, and Proliferation Financing' in preparation for the fifth mutual evaluation by the Financial Action Task Force (FATF) scheduled for 2028.
This strategy and policy were reported and approved during the 23rd National Counter-Terrorism Committee meeting chaired by Prime Minister Han Seung-soo.
The government has outlined five key strategies and 12 implementation tasks. Central to these efforts are the strengthening of beneficial ownership information management for corporations and trusts, the expansion of anti-money laundering (AML) obligations for certain non-financial businesses, the introduction of artificial intelligence (AI) for suspicious transaction reporting (STR) analysis, and enhanced recovery of criminal proceeds.
In particular, the government plans to gradually impose customer verification, data retention, and suspicious transaction reporting obligations on specific non-financial businesses, including lawyers, accountants, tax agents, real estate brokers, and precious metals dealers.
The FIU intends to implement an AI-based suspicious transaction analysis system and a virtual asset analysis and tracking solution, while also expanding its analytical workforce. In 2025, the total number of suspicious transaction reports is expected to reach 1,333,391, a significant increase from 884,655 in 2021, with STRs related to virtual assets surging from 199 to 62,055 during the same period.
Responsibilities for AML compliance among financial institutions will also be strengthened. The government will designate AML officers at the executive level and clarify internal control obligations, while establishing a risk-based supervisory system focused on financial institutions with high money laundering risk.
Additionally, the government plans to legislate the freezing of transactions related to suspicious accounts linked to new types of phishing, as well as drug and gambling-related crimes, and to introduce a system for the independent and extended confiscation of criminal proceeds.
The FIU aims to demonstrate that the domestic anti-money laundering system is functioning effectively during the FATF's fifth mutual evaluation, which will take place over approximately 14 months starting in March 2028.
* This article has been translated by AI.
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