Article 1(Purpose) #
The purpose of this Act is to implement the International Convention for the Suppression of the Financing of Terrorism and the United Nations Security Council resolution, etc. related to the prevention of the proliferation of weapons of mass destruction by providing for matters necessary to prohibit the financing of terrorism against the public and the proliferation of weapons of mass destruction. <Amended on May 28, 2014>
Article 2(Definitions) #
The terms used in this Act are defined as follows: <Amended on Jul. 25, 2011; Apr. 5, 2013; May 28, 2014; Mar. 29, 2016; Mar. 24, 2020>
1. The term "funds for terrorism against the public (hereinafter referred to as "funds for terrorism")" means funds or assets collected, provided, transported or kept to be used for any of the following acts, for the purposes of interfering with the State, a local government or foreign government (including a foreign local government, or international organization established by a treaty or other international convention) in exercising its rights or forcing it to perform a non-obligatory act, or threatening or endangering the public:
a. Murder, injuring human body part that may result in death, or illegal arrest, confinement, abduction, enticement or taking hostage;
b. Any of the following acts related to an aircraft (referring to an aircraft as defined in 1 of Article 2 of the Aviation Safety Act; the same applies hereafter in this item):
(i) Crashing, overturning or destroying an aircraft during flight (referring to flight as defined in subparagraph 1 of Article 2 of the Aviation Security Act; the same applies hereafter in this item), or causing sufficient damage to harm the safety of an aircraft during flight;
(ii) Hijacking, or forcing the operation of an aircraft during flight by assault, intimidation or other means;
(iii) Damaging, or interfering with the operation of aviation facilities related to the operation of an aircraft, so as to harm the safety of an aircraft;
c. Any of the following acts related to a ship (referring to a ship as defined in the main sentence of subparagraph 1 of Article 2 of the Act on Punishment For Damaging Ships and Sea Structures; the same applies hereafter in this item) or a marine structure (referring to a marine structure as defined in subparagraph 5 of Article 2 of the same Act; the same applies hereinafter in this item):
(i) Destroying a ship during its operation (referring to operation as defined in subparagraph 2 of Article 2 of the same Act; the same applies hereafter in this item) or a marine structure, or causing sufficient damage to harm the safety of a ship during its operation, any marine structure or freight stowed thereon;
(ii) Hijacking, or forcing the operation of a ship or a marine structure by assault, intimidation or other means;
(iii) Destroying, causing major damage to, or impairing the functions of equipment or facilities related to the operation of a ship, so as to harm the safety of the ship during operation;
d. Loading or exploding explosives or incendiary arms or devices, which were produced, or are sufficiently powerful to kill, critically injure or cause major damage, or using them in other ways on any of the following vehicles or facilities:
(i) Public vehicles used for transporting humans or goods, such as trains, streetcars, automobiles, etc.;
(ii) Facilities or roads used for vehicle traffic falling under subitem i, parks, stations, or other public facilities;
(iii) Facilities to supply electricity or gas, drinking water supply for the public, other facilities or facilities for telecommunications provided to, or used by the public;
(iv) Processing, transporting or storing facilities to produce or refine raw materials of petroleum, flammable gas, coal or other fuel, or process them into fuel;
(v) Structures, aircraft or ships, which the public may access, excluding facilities referred to in subitems i through iv;
e. Any of the following acts related to nuclear materials (referring to nuclear materials as defined in subparagraph 1 of Article 2 of the Act on Measures for the Protection of Nuclear Facilities and Prevention of Radiation Disasters; hereafter the same applies in this item), radioactive materials (referring to radioactive materials as defined in subparagraph 5 of Article 2 of the Nuclear Safety Act; hereafter the same applies in this item) or nuclear facilities (referring to nuclear facilities as defined in subparagraph 2 of Article 2 of the Act on Measures for the Protection of Nuclear Facilities and Prevention of Radiation Disasters; hereafter the same applies in this item):
(i) Killing a human, injuring a body part or property, or endangering other public safety by destroying a nuclear reactor;
(ii) Endangering human life or body part by wrongfully using radioactive materials, a nuclear reactor or facility related thereto, a nuclear fuel cycle facility, a radiation generator, etc.;
(iii) Receiving, carrying, possessing, storing, using, transporting, altering, disposing of or dispersing nuclear materials;
(iv) Destroying or damaging nuclear materials or a nuclear facility, or causing such, or interfering with the normal operation of a nuclear facility, resulting in discharge of radioactive material or radiation leak;
2. The term "proliferation of weapons of mass destruction" means manufacturing, acquiring, possessing, developing, transporting, transferring or using any of the following weapons:
a. A nuclear weapon;
b. A chemical weapon;
c. A biological weapon;
d. Means of transport of weapons falling under any of items a through c;
3. The term "funds for proliferation of weapons of mass destruction" means funds or property for use in the proliferation of weapons of mass destruction;
4. The term "financial transaction, etc." means a financial transaction, etc. as defined in subparagraph 2 of Article 2 of the Act on Reporting and Using Specified Financial Transaction Information.
Article 3(Application to foreign exchange transactions or foreigners) #
(1) This Act shall also apply to cases falling under any subparagraph of Article 2(1) of the Foreign Exchange Transactions Act.
(2) This Act shall also apply to any of the following persons:
1. Any foreigner (including any person without citizenship; the same applies hereinafter) who has committed a crime referred to in Article 6(1) outside the Korean territory to damage a Korean public institution, such as overseas missions, or facilities thereof, or harm Korean citizens;
2. Any foreigner who has committed a crime referred to in Article 6(1) outside the Korean territory and is in the Korean territory.
Article 4(Designation of persons subject to restrictions on financial transactions) #
(1) If the Financial Services Commission deems that a case falls under any of the following subparagraphs, the Commission may designate the individual, corporation or organization deemed related to any act falling under any of the items of subparagraph 1 of Article 2 or the proliferation of weapons of mass destruction (hereinafter referred to as "proliferation of weapons of mass destruction, etc.") and their directly or indirectly owned or controlled corporations as a person whose acts referred to in the subparagraphs of paragraph (4) are restricted (hereinafter referred to as "individual, corporation, or organization related to the proliferation, etc. of weapons of mass destruction, etc."), and publicly notify such designation: <Amended on May 28, 2014; Jan. 21, 2025>
1. Where restriction on the proliferation of weapons of mass destruction, etc. is necessary to comply with treaties to which Korea is a party, or generally accepted international laws in good faith;
2. Where restriction on the proliferation of weapons of mass destruction, etc. is necessary to especially contribute to international efforts to sustain international peace and security.
(2) Where the Financial Services Commission intends to designate and publicly notify a person subject to restrictions on financial transactions, etc. under paragraph (1), it shall obtain prior consent from the following persons; provided, it may designate and publicly notify such person without obtaining prior consent where the proliferation of weapons of mass destruction, etc. is likely to harm life, body or property of people or in emergency or other urgent circumstances that are likely to jeopardize public safety: <Amended on Mar. 23, 2013; May 28, 2014; Jan. 21, 2025; Oct. 1, 2025>
1. The Minister of Economy and Finance;
2. The Minister of Foreign Affairs;
3. The Minister of Justice.
(3) The Financial Services Commission shall obtain consent from each person mentioned in the subparagraphs of paragraph (2) within 48 hours from the time it designates and publicly notifies a person subject to restrictions on financial transactions, etc. without obtaining consent pursuant to the proviso to paragraph (2). Where it fails to obtain such consent, the designation and public announcement loses its effect and the Financial Services Commission shall publish such fact without delay.
(4) Where a person designated and publicly notified in advance by the Financial Services Commission pursuant to paragraph (1) (hereinafter referred to as a "designated person subject to restriction on financial transactions, etc.") or a person who is not a designated person subject to restriction on financial transactions, etc., and is directly or indirectly owned or controlled by such person (hereinafter referred to as an "undesignated person subject to restrictions on financial transactions, etc.") intends to engage in any of the following acts (including cases where such person becomes the other party in cases falling under subparagraph 2), he or she shall obtain permission from the Financial Services Commission, as prescribed by Presidential Decree; in such cases, an application for permission may be filed by a designated person subject to restriction on financial transactions, etc. or an undesignated person subject to restriction on financial transactions, etc. (hereinafter referred to as "persons subject to restriction on financial transactions, etc.") or the other party to such act, as prescribed by Presidential Decree: <Amended on Mar. 24, 2020; Jan. 21, 2025>
Article 4-2(Special cases of objection) #
(1) Any party or person subject to restrictions on financial transactions, etc. who is dissatisfied with a disposition under this Act may file an objection with the Financial Services Commission within the period classified as follows: <Amended on Jan. 21, 2025>
1. Designation under Article 4(1): 30 days from the date on which a person becomes aware of a disposition;
2. Other dispositions, such as refusal of permission under Article 4(4): 30 days from the date the disposition is taken.
(2) The Financial Services Commission shall make a decision on the objection within 7 days from the date on which it receives the objection under paragraph (1) and notify the applicant of the result in writing without delay; provided, where it is impossible to make a decision within 7 days due to unavoidable reasons, it may extend the period by up to 7 days, counting from the date immediately following the expiry date of such period, and shall notify the applicant of the reasons for extension and the extended period, etc. in detail in writing.
(3) Details on the procedures, etc. for filing an objection under paragraphs (1) and (2) shall be prescribed by Presidential Decree.
(4) Except as provided in paragraphs (1) through (3), matters concerning filing an objection against a disposition shall be governed by Article 36 of the Framework Act on Public Administration.
[This Article Added on Sep. 14, 2023]
Article 5(Duties of financial companies and their employees) #
(1) No financial company, etc. (including its employees) shall make a financial transaction nor may disburse or receive the payment therefor, with a person subject to restrictions on financial transactions, etc., except where a permission is granted under Article 4(4).<Amended on May 19, 2011; Sep. 15, 2011; Mar. 24, 2020; Jan. 21, 2025>
(2) When any employee of a financial company, etc. is aware of the fact that assets received from a financial transaction are funds for terrorism or the proliferation of weapons of mass destruction, or the other party to a transaction is making a transaction, or disbursing or receiving the payment therefor without a permit referred to in Article 4(4) or is committing a crime referred to in Article 6(1), he or she shall, without delay, report such fact to the competent investigative authority, notwithstanding the provisions of other Acts or subordinate statutes. <Amended on May 19, 2011; Sep. 15, 2011; May 28, 2014; Mar. 24, 2020>
(3) Where any employee of a financial company, etc. intends to file, or has already filed a report pursuant to paragraph (2), he or she shall not divulge such fact to any other person, including the other party to the relevant financial transaction; provided, the same shall not apply where an insider in the financial company, etc. provides such fact, if necessary to prevent the proliferation of weapons of mass destruction. <Amended on May 19, 2011; May 28, 2014; Mar. 23, 2020>
[Title Amended on May 19, 2011]
Article 5-2(Prohibited acts) #
(1) No person shall provide funds or property directly or via a third person to an individual, corporation or organization for the purpose of benefiting such individual, corporation or organization although he or she is aware that the individual, corporation or organization performs or intends to perform an act falling under any of the items of subparagraph 1 of Article 2.
(2) No person shall raise, transport or keep funds or property for the purpose of benefitting an individual, corporation or organization although he or she is aware that such individual, corporation or organization is the individual, corporation or organization under paragraph (1).
(3) No person shall compel or recommend another person to perform an act under paragraph (1) or (2) for the purpose of benefitting an individual, corporation or organization although he or she is aware that such individual, corporation or organization is the individual, corporation or organization under paragraph (1).
[This Article Wholly Amended on May 28, 2014]
Article 6(Penalty provisions) #
(1) Any of the following persons shall be punished by imprisonment with prison labor for not more than 10 years or by a fine not exceeding 100 million won: <Amended on May 28, 2014>
1. Any person who provides or raises, or transports or keeps funds or property, in violation of Article 5-2(1) or (2);
2. Any person who compels or recommends another person to perform an act under Article 5-2(1) or (2), in violation of Article 5-2(3).
(2) Any of the following persons shall be punished by imprisonment with labor for up to 3 years or by a fine not exceeding 30 million won: <Amended on May 19, 2011; Sep. 15, 2011; May 28, 2014; Jan. 21, 2025>
1. Any person subject to restrictions on financial transactions, etc. who performs any act under the subparagraphs of Article 4(4) or any counterparty thereto, if he or she has obtained permission under Article 4(4) by deception or other fraudulent means;
2. Any person subject to restrictions on financial transactions, etc. who performs any act under any subparagraph of Article 4(4) without obtaining permission under Article 4(4);
3. The counterparty to a person subject to restrictions on financial transactions, etc., who has performed an act falling under Article 4(4)2 without obtaining permission under Article 4(4) although the counterparty is aware of that the person is subject to restrictions on financial transactions, etc.;
4. Deleted; <May 28, 2014>
5. Any employee of a financial company, etc. who makes a transaction, in violation of Article 5(1).
(3) Any of the following persons shall be punished by imprisonment with prison labor for not more than 2 years or by a fine not exceeding 10 million won:
1. Any person who fails to file a report to the competent investigative authority, in violation of Article 5(2);
2. Any person who divulges the filing of a report, in violation of Article 5(3).
(4) Any would-be criminal referred to in paragraph (1)1 or paragraph (2)1 through 3 shall be punished. <Amended on May 28, 2014>
(5) Any person who prepares a plot or form a conspiracy for the purpose of committing a crime referred to in paragraph (1)1 shall be punished by imprisonment for not more than 3 years or by a fine not exceeding 30 million won. <Added on May 28, 2014>
Article 7(Administrative fines) #
(1) Any financial company, etc. (limited to cases where its employee violates Article 5(1) by negligence) that makes a transaction, in violation of paragraph (1) of the same Article, shall be punished by an administrative fine not exceeding 20 million won. <Amended on May 19, 2011>
(2) Administrative fines referred to in paragraph (1) shall be imposed and collected by the Financial Services Commission, as prescribed by Presidential Decree. <Amended on Feb. 29, 2008>
(3) Deleted. <Sep. 15, 2011>
(4) Deleted; <Sep. 15, 2011>
(5) Deleted; <Sep. 15, 2011>