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ACT ON REPORTING AND USING SPECIFIED FINANCIAL TRANSACTION INFORMATION — 법갈피

영문법령 / ACT ON REPORTING AND USING SPECIFIED FINANCIAL TRANSACTION INFORMATION

ACT ON REPORTING AND USING SPECIFIED FINANCIAL TRANSACTION INFORMATION

법률타법개정시행 2024-07-19금융위원회,법무부 · 제19563호 · 공포 2023-07-18

CHAPTER I GENERAL PROVISIONS

Article 1(Purpose) #

The purpose of this Act is to provide for matters relating to, among other things, reporting on and use of specified financial transaction information necessary to regulate money laundering and financing of terrorism through financial transactions, etc. thereby contributing to preventing crimes and firmly establishing a sound and transparent financial system. <Amended on Mar. 24, 2020>

[This Article Wholly Amended on May 19, 2011]

Article 2(Definitions) #

The terms used in this Act are defined as follows: <Amended on May 19, 2011; Aug. 13, 2013; May 28, 2014; May 29, 2016; Mar. 24, 2020; May 19, 2020; Jul. 18, 2023>

1. The term "financial company, etc." means the following:

a. The Korea Development Bank under the Korea Development Bank Act;

b. The Export-Import Bank of Korea under the Export-Import Bank of Korea Act;

c. The Industrial Bank of Korea under the Industrial Bank of Korea Act;

d. Banks under the Banking Act;

e. Investment traders, investment brokers, collective investment entities, trust entities, financial securities companies, merchant banks, transfer agency companies under the Financial Investment Services and Capital Markets Act;

f. Mutual savings banks and the National Federation of Mutual Savings Banks under the Mutual Savings Banks Act;

g. Agricultural cooperatives and Nonghyup Bank under the Agricultural Cooperatives Act;

h. Fisheries cooperatives and Suhyup Bank under the Fisheries Cooperatives Act;

i. Credit Unions and the National Federation of Credit Unions under the Credit Unions Act;

j. Community Credit Cooperatives and the National Federation of Community Credit Cooperatives under the Community Credit Cooperatives Act;

k. Insurance companies under the Insurance Business Act;

l. Postal service agencies under the Postal Savings and Insurance Act;

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 on May 28, 2014; Jan. 15, 2019; Mar. 24, 2020; Dec. 28, 2021>

1. Compiling, analyzing, and providing information that has been reported or notified pursuant to Articles 4,4-2, and 9;

2. Supervising and inspecting the operations performed by financial companies, etc. pursuant to Articles 4,4-2,5,5-2,5-3,5-4, and 8;

3. Cooperating with international financial intelligence services and exchanging information therewith under Article 4(6)2;

4. Duties related to reporting by virtual asset service providers under Article 7;

5. Cooperation and information exchange with foreign financial supervision and inspection agencies under Article 15-2;

6. Duties under the Act on Prohibition against the Financing of Terrorism and Proliferation of Weapons of Mass Destruction;

7. Duties associated with those referred to in subparagraphs 1 through 6, 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 on 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 on 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 on Aug. 13, 2013; Mar. 24, 2020>

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 the number of cases where specified financial transaction information has been provided pursuant to Article 10;

2-2. Statistical data related to notification and postponement of notification under Article 10-2;

3. The number of information exchanges with international financial intelligence services under Article 11;

4. Other statistical data related to the duties of the Korea Financial Intelligence Unit.

[This Article Wholly Amended on May 19, 2011]

Article 4(Reporting on transactions of suspected illegal assets) #

(1) A financial company, etc. falling under any of the following subparagraphs shall report such fact to the Commissioner of the Korea Financial Intelligence Unit without delay, as prescribed by Presidential Decree: <Amended on Aug. 13, 2013; May 28, 2014; Mar. 24, 2020>

1. Where any reasonable grounds exist to suspect that an asset which has been received in relation to any financial transaction, etc. is illegal;

2. Where any reasonable grounds exist to suspect that the other party to a financial transaction, etc. engages in money laundering or financing of terrorism, such as engaging in illegal financial transactions, etc. in violation of Article 3(3) of the Act on Real Name Financial Transactions and Confidentiality;

3. Where any employee of a financial company, etc. reports to the competent investigation agency pursuant to Article 5(1) of the Act on the Regulation and Punishment of Criminal Proceeds Concealment or Article 5(2) of the Act on Prohibition against the Financing of Terrorism and Proliferation of Weapons of Mass Destruction.

(2) Deleted. <Aug. 13, 2013>

(3) Where a financial company, etc. file a report under paragraph (1), it shall clearly state the reasonable grounds for such suspicion. <Amended on Aug. 13, 2013>

(4) Deleted. <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 on Aug. 13, 2013; Jan. 15, 2019>

(6) Where any employee of a financial company, etc. intends to file or has filed a report under paragraph (1), he or she shall not divulge such fact to any other person, including the other party to the relevant financial transaction, etc.; provided, this shall not apply to either of the following cases: <Amended on Aug. 13, 2013; Mar. 24, 2020>

1. Where the same financial company, etc. internally provides 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 the subparagraphs 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 have filed a report under paragraph (1) shall be liable for damages to the other party to a financial transaction, etc., or other interested parties to the financial transaction, etc. related to said report, except where a false report has been filed by intent or gross negligence. <Amended on Aug. 13, 2013; Mar. 24, 2020>

[This Article Wholly Amended on May 19, 2011]

Article 4-2(Reporting of large cash transactions by financial companies) #

(1) Where a financial company, etc. have paid to, or received from the other party to a financial transaction, etc., at least the amount of money prescribed by Presidential Decree not exceeding 50 million won in cash (excluding foreign currencies) or 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, this shall not apply to any of the following cases: <Amended on Mar. 24, 2020>

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, etc. is making installment transactions for the purpose of evading what is prescribed in paragraph (1), a financial company, etc. shall report such fact to the Commissioner of the Korea Financial Intelligence Unit. <Amended on Mar. 24, 2020>

(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;

2. Korea Financial Investment Association established pursuant to Article 283 of the Financial Investment Services and Capital Markets Act;

3. Korea Federation of Savings Banks established pursuant to Article 25 of the Mutual Savings Banks Act.

(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 on May 19, 2011]

Article 5(Measures by financial companies) #

(1) In order to facilitate the reporting referred to in Articles 4(1) and 4-2 and efficiently prevent money laundering and financing of terrorism through the financial company, etc., a financial company, etc. shall implement the following measures: <Amended on Mar. 21, 2012; Aug. 13, 2013; 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 executive officers and 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 executive officers and 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). <Added on Jan. 15, 2019>

(3) Procedures and work guidelines under paragraph (1)2 shall include the following: <Added on 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 executive officers and employees to ensure that they comply with the procedures and work guidelines under paragraph (1)2 when performing their duties. <Added on Jan. 15, 2019>

[This Article Wholly Amended on May 19, 2011]

Article 5-2(Customer due diligence for financial companies) #

(1) As part of due diligence to guard against the risk of money laundering and financing of terrorism using financial transactions, etc. 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 on May 28, 2014; Mar. 24, 2020>

1. Where a customer opens an account or makes a one-time financial transaction, etc. in at least an amount prescribed by Presidential Decree: The following matters shall be verified:

a. Customer’s personal information and others related thereto which are prescribed by Presidential Decree;

b. A natural person finally governing and controlling a customer (hereafter in this Article referred to as an "actual owner") and others related thereto; provided,, where a customer is a corporation 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. The items of subparagraph 1;

b. Matters determined and publicly notified by the Commissioner of the Korea Financial Intelligence Unit including the purpose of a financial transaction, etc. and the source of funds for transactions (limited to the scope deemed reasonable by a financial company etc., having regard to the risks of money laundering and financing of terrorism;

3. Where the customer is a virtual asset service provider: The following matters shall be verified:

a. Matters under the items of subparagraph 1 or 2;

b. Matters regarding fulfillment of the duty to report or report on modification under Article 7(1) or (2);

c. Matters regarding acceptance of a report under Article 7(3);

d. Matters regarding cancellation of a report or of report on modification ex officio under Article 7(4);

e. Matters regarding implementation of either of the following:

1) Management of deposits (referring to the money deposited by customers of virtual asset service providers in connection with virtual asset transactions) separately from inherent assets (referring to the proprietary assets of virtual asset service providers);

2) Acquisition of certification of information security management systems under Article 47 of the Act on Promotion of Information and Communications Network Utilization and Information Protection or Article 32-2 of the Personal Information Protection Act (hereinafter referred to as "certification of an information security management system").

(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, etc. <Amended on Mar. 24, 2020>

(3) The object, standards, procedures, and methods of verification measures, etc. under the subparagraphs of paragraph (1) and other necessary matters shall be prescribed by Presidential Decree.

(4) A financial company, etc. shall reject a new transaction with the relevant customer such as opening a new account in any of the following cases, and if a transaction relationship has already been established, the financial company, etc. shall terminate such transaction: <Added on May 28, 2014; Mar. 24, 2020>

1. Where it is impossible to verify identity of the customer, including where the customer refuses to provide information necessary for identification, etc.;

2. Where the customer who is a virtual asset service provider falls under any of the following items:

a. Where it is verified that the customer fails to perform his or her duty to report or report on modification under Article 7(1) or (2);

b. Where the facts falling under Article 7(3)1 or 2 are verified;

c. Where it is verified that a report is not accepted under Article 7(3);

d. Where it is verified that a report or a report on modification is cancelled ex officio under Article 7(4);

3. Other cases prescribed by Presidential Decree, where the customer is deemed highly likely to engage in money laundering or financing of terrorism.

(5) Where a transaction is rejected or terminated under paragraph (4), a financial company, etc., shall review whether to report a suspicious transaction under Article 4. <Added on May 28, 2014>

[This Article Wholly Amended on May 19, 2011]

Article 5-3(Provision of wire 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 wire 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:

1. Domestic Transfer:

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;

2. Foreign Transfer:

a. Name of a remitter;

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)2c, in any of the following cases, to a financial company, etc. which transfer 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 Added on Aug. 13, 2013]

Article 5-4(Information retention period for financial companies) #

(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 relationship involving a financial transaction, etc. is terminated: <Amended on Mar. 24, 2020>

1. 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, etc.;

b. Data on a financial transaction, etc. subject to 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 relationship involving a financial transaction, etc. is terminated" in the provisions, with the exception of the subparagraphs, of paragraph (1) shall be the following dates: <Amended on Mar. 24, 2020>

1. In the case of subparagraph 2a 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 2b of Article 2, the date the transaction is terminated due to the occurrence of an event triggering termination; provided, when the customer’s account is opened, it shall be deemed the date the account is closed;

3. In the case of subparagraph 2c of Article 2, the date all obligations in casino between a casino business operator and a customer are terminated;

4. In the case of subparagraph 2d of Article 2, the date all claims and obligations arising from virtual asset transactions between a virtual asset service provider and a customer are settled;

5. In the case of other financial transactions, etc., 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 Added on Jan. 15, 2019]

[Title Amended on Mar. 24, 2020]

Article 7(Reporting) #

(1) Virtual asset service providers (including those who intend to operate such business); hereafter in this Article the same shall apply) shall report the following to the Commissioner of the Korea Financial Intelligence Unit, as prescribed by Presidential Decree:

1. The name of the company and its representative;

2. Matters prescribed by Presidential Decree, such as the location of a place of business and contact information.

(2) In the event of a modification in any matter reported in accordance with paragraph (1), such modification shall be reported to the Commissioner of the Korea Financial Intelligence Unit, as prescribed by Presidential Decree.

(3) Notwithstanding paragraph (1), the Commissioner of the Korea Financial Intelligence Unit may choose not to accept a report filed by any of the following virtual asset service providers, as prescribed by Presidential Decree:

1. A person who fails to obtain certification of an information security management system;

2. A person who does not conduct financial transactions, etc. through a deposit and withdrawal account in which a real name can be verified (referring to an account that only allows financial transactions, etc. between the account of a virtual asset service provider that is opened in the same financial company, etc. (limited to the financial company, etc. prescribed by Presidential Decree) and the account of a customer of said virtual asset service provider); provided, excluded herefrom shall be entities determined by the Commissioner of the Korea Financial Intelligence Unit taking into account the characteristics of virtual asset transactions;

3. Where a person for whom five years have not elapsed since his or her sentence of a fine or heavier punishment declared by a court under finance-related statutes prescribed by Presidential Decree, such as this Act, the Act on the Regulation and Punishment of Criminal Proceeds Concealment, the Act on Prohibition against the Financing of Terrorism and Proliferation of Weapons of Mass Destruction, the Foreign Exchange Transactions Act, the Financial Investment Services and Capital Markets Act was completely executed (including cases where the execution of such sentence is deemed terminated) or exempted (where the virtual asset service provider is a corporation, its representative and executive officer shall be included);

4. A person for whom five years have not elapsed since a report or a report on modification was cancelled pursuant to paragraph (4).

(4) Where a virtual asset service provider falls under any of the following subparagraphs, the Commissioner of the Korea Financial Intelligence Unit may cancel the report or report on modification under paragraph (1) or (2) ex officio, as prescribed by Presidential Decree:

1. Where he or she falls under any subparagraph of paragraph (3); provided, this shall not apply to cases falling under paragraph (3)1, which are prescribed by Presidential Decree;

2. Where he or she reports business closure to the head of the tax office having jurisdiction over his or her place of business or where the head of the tax office having jurisdiction over his or her place of business cancels his or her business registration under Article 8 of the Value-Added Tax Act;

3. Where he or she fails to comply with an order to suspend all or part of his or her operations under paragraph (5);

4. Cases prescribed by Presidential Decree, such as filing a report or report on modification by fraud or other improper means.

(5) If a virtual asset service provider falls under any of the following subparagraphs, the Commissioner of the Korea Financial Intelligence Unit may order said virtual asset service provider to suspend all or part of his or her operations for a period of up to six months, as prescribed by Presidential Decree:

1. Where he or she fails to comply with a corrective order under Article 15(2)1;

2. Where he or she has received warning to an institution under Article 15(2)2 on at least three occasions;

3. Where it fails to take necessary measures to prevent money laundering and financing of terrorism by intent or gross negligence, as prescribed by Presidential Decree.

(6) The term of validity of the report under paragraph (1) shall be the period prescribed by Presidential Decree, which shall not exceed five years from the date of receiving the report. A person who intends to continue to engage in the same activities as part of his or her business after expiration of the term of validity of the report shall have his or her report renewed, as prescribed by Presidential Decree.

(7) The Commissioner of the Korea Financial Intelligence Unit may disclose the information regarding the reporting by virtual asset service providers and measures taken by the Commissioner of the Korea Financial Intelligence Unit under paragraphs (1) through (6), as prescribed by Presidential Decree.

(8) The Commissioner of the Korea Financial Intelligence Unit may entrust the duties prescribed by Presidential Decree among those related to reporting by virtual asset service providers under this Article, to the Governor of the Financial Supervisory Service under the Act on the Establishment of Financial Services Commission (hereinafter referred to as the "Governor of the Financial Supervisory Service").

(9) Necessary matters regarding the standards, conditions, and procedures for a financial company, etc.'s opening a deposit and withdrawal account in which real names can be verified under paragraph (3)2 shall be prescribed by Presidential Decree.

[This Article Added on Mar. 24, 2020]

[Previous Article 7 moved to Article 10 <Mar. 24, 2020>]

Article 10(Provision of information to investigation agencies) #

(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, financial supervision, or investigations of suspected terrorists (hereinafter referred to as "investigation, etc. of specific criminal offenses"), the Commissioner of the Korea Financial Intelligence Unit shall provide the following information (hereinafter referred to as "specified financial transaction information") to the Prosecutor General, the Minister of the Interior and Safety (limited to cases where it is necessary for providing to the head of a local government under the Framework Act on Local Taxes; hereinafter the same shall apply), the Chief Prosecutor of the Corruption Investigation Office for High-Ranking Officials, the Commissioner of the National Tax Service, the Commissioner of the Korea Customs Service, the Commissioner of the National Election Commission, the Chairperson of the Financial Services Commission, or the Director of the National Intelligence Service : <Amended on May 19, 2011; Mar. 21, 2012; Dec. 11, 2012; Aug. 13, 2013; Mar. 3, 2016; Mar. 24, 2020; May 19, 2020; Jan. 5, 2021; Dec. 28, 2021>

1. Information prescribed by Presidential Decree, taking into consideration relevance to investigation, etc. of specific criminal offenses, among the information reported by a financial company, etc. under Article 4(1) or 4-2;

2. Information prescribed by Presidential Decree, taking into consideration relevance to investigation, etc. of specific criminal offenses, among the information provided by foreign financial intelligence services under Article 11(1);

3. Information under subparagraphs 1 and 2 or information compiled or analyzed after being reported or notified under Articles 4-2 and 9.

(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 on May 19, 2011; Dec. 11, 2012; Nov. 19, 2014; Jul. 26, 2017>

(3) Deleted. <Jan. 17, 2005>

(4) Where deemed necessary for investigation, etc. of specific criminal offenses, the Prosecutor General, the Director-General of the Corruption Investigation Office for High-Ranking Officials, the Commissioner General of the Korean National Police Agency, 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 Commissioner of the National Election Commission, the Chairperson of 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 on May 19, 2011; Dec. 11, 2012; Nov. 19, 2014; Mar. 3, 2016; Jul. 26, 2017; May 19, 2020; Jan. 5, 2021>

(5) Where the Prosecutor General, etc. requests the provision of specified financial transaction information under paragraph (4), he or she shall file a written request stating the following matters: <Amended on May 19, 2011; Aug. 13, 2013>

1. Personal information on the person in question;

2. Purpose of the use of information;

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 or she shall refuse such request. <Amended on 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 or she shall record the following matters 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 on May 19, 2011; Aug. 13, 2013>

1. The positions and names of staff members (a person in charge and a manager) 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 to which a public official (a person in charge and a manager) who receives specified financial transaction information belongs, and his or 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 or her control to deliberate on the provision of specified financial transaction information to the Prosecutor General, etc. <Added on 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, one the Commissioner of the Korea Financial Intelligence Unit, one a general manager in charge of the review and analysis, and a third, qualified as prescribed by Presidential Decree. <Added on Aug. 13, 2013>

(10) Other matters regarding the deliberation procedures, 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. <Added on Aug. 13, 2013>

(11) Where the Minister of the Interior and Safety, 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 such information in investigating tax or customs evasion or collecting tax or customs duty from defaulters, he or 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. <Added on Aug. 13, 2013; May 19, 2020>

(12) The Prosecutor General, etc., shall establish the standards for retaining and managing specified financial transaction information provided under paragraphs (1), (2), and (4) and notify the Commissioner of the Korea Financial Intelligence Unit of said standards. <Added on May 28, 2014>

[Title Amended on May 19, 2011]

[Moved from Article 7; previous Article 10 moved to Article 13 <Mar. 24, 2020>]

Article 10-2(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 10(1)3) to the Prosecutor General, etc. pursuant to Article 10, he or she shall notify a title holder of major details of the transaction information provided, the purpose and recipient of such information, the date on which said information is provided, etc., within 10 days from the date of provision (where notification is postponed under paragraph (2) or (3), referring to the date when the period of postponement of notification ends) , in the standard format prescribed by the Commissioner of the Korea Financial Intelligence Unit. <Amended on Mar. 24, 2020>

(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 or she shall postpone notification for a period of up to six months, notwithstanding paragraph (1):

1. Where the relevant notification is likely to pose a threat to human life or physical safety;

2. Where the relevant notification is highly likely to obstruct 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 in administrative procedures, such as inquiries and investigations.

(3) Where the Prosecutor General, etc. show the persistence of any of the following grounds referred to in any subparagraph of paragraph (2) and repeatedly requests postponement of notification in writing, the Commissioner of the Korea Financial Intelligence Unit shall postpone notification for a period of postponement requested, of up to three months each time, on up to two occasions from the date of receipt of such requests (excluding cases falling under paragraph (2)1).

(4) Where deemed necessary for issuing notification to a title holder under paragraph (1), the Commissioner of the Korea Financial Intelligence Unit may request the head of a relevant administrative agency, etc. to provide the following data, in writing stating the purpose of the use:

1. Electronic data on resident registration under Article 30(1) of the Resident Registration Act;

2. Basic data related to a business entity including the location of a place of business.

[This Article Added on Aug. 13, 2013]

[Moved from Article 7-2 <Mar. 24, 2020>]

Article 12(Confidentiality of financial transaction information) #

(1) No person falling under any of the following subparagraphs shall provide or divulge to others specified financial transaction information he or she becomes aware of in the course of performing his or her duties, information received under Article 5-3, information or data received under Article 13, information received under Article 15(7), or matters that come to his or her knowledge at the intelligence analysis council under Article 10(8), or use such information or data for purposes other than its original purpose: <Amended on Mar. 21, 2012; Aug. 13, 2013; Mar. 24, 2020>

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 person who performs services related to the relevant computerized system;

3. Employee of an intermediary;

3-2. Person working at a receiving financial company;

4. Person involved in specific criminal investigations related to specified financial transaction information provided under Article 10;

5. Person who conducted supervision and examination under Article 15(1) and (6);

6. Person who participates in the intelligence analysis council or becomes engaged in duties of the intelligence analysis council under Article 10(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 13, and information received under Article 15(7), or to use such information or data for purposes other than its original purpose. <Added on Mar. 21, 2012; Aug. 13, 2013; Mar. 24, 2020>

(3) No specified financial transaction information provided under Article 10 shall be admissible as evidence in a trial. <Amended on Mar. 21, 2012; Mar. 24, 2020>

(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 16 and 17; provided, this shall not apply where substantial public interests are involved. <Amended on Mar. 21, 2012; Aug. 13, 2013; Mar. 24, 2020>

[This Article Wholly Amended on May 19, 2011]

[Moved from Article 9; previous Article 12 moved to Article 14 <Mar. 24, 2020>]

Article 13(Requests for provision of data) #

(1) When deemed necessary for analyzing specified financial transaction information (excluding information referred to in Article 10(1)3; hereafter in this Article the same shall apply) or information reported or notified under Article 4-2 or 9, the Commissioner of the Korea Financial Intelligence Unit may request the head of a relevant administrative agency, etc. to provide the following data in writing clearly stating the purpose of its use (excluding financial transaction information): <Amended on Aug. 13, 2013; Mar. 29, 2016; Mar. 24, 2020>

1. Computerized registration data under Article 11(6) of the Act on Registration of Family Relations;

2. Electronic data on resident registration under Article 30(1) of the Resident Registration Act;

3. Criminal record materials and investigation record materials under Article 5-2(2) of the Act on the Lapse of Criminal Sentences;

3-2. Data on the amount of insurance premiums under Article 69(5) of the National Health Insurance Act;

4. Data on basic matters relating to 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 collection 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 on financial transaction, etc. involving transactions arising from foreign exchange affairs prescribed in the Foreign Exchange Transactions Act in writing stating the following, only where matters reported or provided are deemed to satisfy the requirements set forth in Article 4(1): <Amended on Aug. 13, 2013; Mar. 24, 2020>

1. The trader’s personal details;

2. Purpose of the use of information;

3. Details of information or data related to financial transactions requested.

(4) The request or demand for information or data under paragraphs (1) through (3) shall be made only to the minimum extent necessary.

[This Article Wholly Amended on May 19, 2011]

[Moved from Article 10; previous Article 13 moved to Article 16 <Mar. 24, 2020>]

Article 15(Supervision and inspection of financial companies) #

(1) The Commissioner of the Korea Financial Intelligence Unit may supervise operations performed by financial companies, etc., issue orders or directives where necessary for supervision, and direct public officials under his or her control to inspect the operations of financial companies, etc. pursuant to Article 4,4-2,5,5-2,5-3,5-4, or 8. <Amended on Aug. 13, 2013; Jan. 15, 2019; Dec. 28, 2021>

(2) Where any violation of this Act or orders or directives issued under this Act is found as a result of inspection conducted in accordance with paragraph (1), the Commissioner of the Korea Financial Intelligence Unit may take any of the following measures against the relevant financial company, etc.: <Amended on 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 issued under this Act is found as a result of inspection conducted in accordance with paragraph (1), the Commissioner of the Korea Financial Intelligence Unit may request the head of a relevant financial company, etc. to take measures classified as follows against the executive officers and employees of the relevant financial company involved in the violation: <Added on 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;

c. Reprimand warning;

d. Cautionary warning;

e. Caution.

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;

c. Salary reduction;

d. Reprimand;

e. Caution.

(4) The Commissioner of the Korea Financial Intelligence Unit may, in any of the following cases, request the head of a relevant administrative agency who is authorized to impose an administrative sanction regarding 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: <Added on Mar. 21, 2012>

1. Where it fails to comply with a corrective order under paragraph (2)1;

2. Where it has received warning to an institution under paragraph (2)2 on at least three occasions;

3. Where it fails to take necessary measures to prevent money laundering and financing of terrorism by intent or gross negligence, as 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 there is good cause. <Added on Mar. 21, 2012>

(6) The Commissioner of the Korea Financial Intelligence Unit may entrust the Governor of the Bank of Korea or the Governor of the Financial Supervisory Service or others prescribed by Presidential Decree with the task of conducting inspections referred to in paragraph (1) and of taking measures referred to in paragraphs (2) and (3) to be performed by their staff, as prescribed by Presidential Decree. <Amended on Mar. 21, 2012; Mar. 24, 2020>

(7) A person engaged in supervising and conducting inspections under paragraph (1) or (6) may, where necessary for supervision or inspections, request the head of a financial company, etc. to provide information on financial transaction, etc. or information reported under Articles 4 and 4-2 In such cases, any request for information shall be made only to the minimum extent necessary. <Added on Mar. 21, 2012; Mar. 24, 2020>

(8) A person engaged in conducting inspections under paragraph (1) or (6) shall carry identification indicating his or her authority and present it to relevant persons. <Amended on Mar. 21, 2012>

(9) Articles 4(6) and 4-3(3) of the Act on Real Name Financial Transactions and Confidentiality shall apply mutatis mutandis to cases of making a request for information on financial transaction, etc. to the head of a financial company, etc. under paragraph (7). <Added on Mar. 21, 2012; Mar. 24, 2020>

[This Article Wholly Amended on May 19, 2011]

[Moved from Article 11; previous Article 15 moved to Article 18 <Mar. 24, 2020>]

Article 15-2(Business cooperation with foreign financial supervision and inspection agencies) #

(1) The Commissioner of the Korea Financial Intelligence Unit (hereafter in this Article shall include those entrusted with the authority of the Commissioner of the Korea Financial Intelligence Unit under Article 15(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 or regulations (referring to foreign statutes or regulations reflecting international agreements related to 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 or 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. <Amended on Mar. 24, 2020>

(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, this shall not apply where the materials for supervision or inspection are used for a disposition or any procedure equivalent thereto pursuant to the foreign statutes or regulations within the scope of purpose for which such materials are furnished.

(3) Article 15(7) shall apply mutatis mutandis to supervision and inspection under paragraph (1). <Amended on Mar. 24, 2020>

[This Article Added on Jan. 15, 2019]

[Moved from Article 11-2 <Mar. 24, 2020>]

ACT ON REPORTING AND USING SPECIFIED FINANCIAL TRANSACTION INFORMATION

Article 1(Purpose) #

Article 2(Definitions) #

Article 3(Korea Financial Intelligence Unit) #

Article 4(Reporting on transactions of suspected illegal assets) #

Article 4-2(Reporting of large cash transactions by financial companies) #

Article 5(Measures by financial companies) #

Article 5-2(Customer due diligence for financial companies) #

Article 5-3(Provision of wire transfer information) #

Article 5-4(Information retention period for financial companies) #

Article 6(Scope of application) #

Article 7(Reporting) #

Article 8(Measures to be taken by virtual asset service providers) #

Article 9(Notification of data on foreign exchange transactions) #

Article 10(Provision of information to investigation agencies) #

Article 10-2(Notification of provision of specified financial transaction information) #

Article 11(Exchange of information with foreign financial intelligence services) #

Article 12(Confidentiality of financial transaction information) #

Article 12-2(Preservation and destruction of specified financial transaction information) #

Article 13(Requests for provision of data) #

Article 14(Relationship to other statutes) #

Article 15(Supervision and inspection of financial companies) #

Article 15-2(Business cooperation with foreign financial supervision and inspection agencies) #

Article 16(Penalty provisions) #

Article 17(Penalty provisions) #

Article 18(Concurrent imposition of imprisonment with labor and fines) #

Article 19(Joint penalty provisions) #

Article 20(Administrative fines) #