South Korea has garnered full membership of the Financial Action Task Force on Money Laundering (FATF) after almost a decade of efforts to join the international organization.
During its plenary meeting on Wednesday, which takes place three times a year in February, June and October, the Paris-based agency admitted Asia's fourth-largest economy as its 35th member.
The Korea Information Intelligence Unit (KOFIU) expects the membership will help improve the integrity and confidence in the nation's financial markets, and have a positive impact on the offshore business operations of local financial institutions.
``Thus far, Korean financial entities, especially small-sized ones, have languished in their overseas business operations as the country was not a member of the FATF,'' KOFIU Director Lee Young-jick said.
``For example, they have been required to submit additional documents to foreign authorities in order to gain approval or a license. Such inconvenience will not happen in the future,'' he said.
Established in 1989, the FATF has concentrated on the development and promotion of policies to grapple with money laundering and terrorist financing both locally and globally.
Most developed countries have joined the initiative ― a majority of the member countries of the Organization for Economic Cooperation and Development (OECD), composed of advanced economies, participates in the FATF.
Only five OECD nations ― Poland, Hungary, Slovakia, the Czech Republic and Korea ― had not been part of the task force.
After setting up the KOFIU back in 2001, timed with the introduction of the anti-money laundering systems, Korea has tried to join the FATF and gained observer status midway through 2006.
``We will take the FATF membership as an opportunity to make a greater contribution to cross-border efforts fighting against money laundering and terrorist financing,'' Lee said.
Currently, those who attempt money laundering here face severe punishment. Even financial outfits or casino operators who fail to abide by reporting obligations on suspicious transactions regarding money laundering can face criminal charges.
Financial firms or casino owners are subject to a maximum of 30 million won in fines or up to five years in jail if they violate regulations on the mandatory reports.
KOFIU is looking to expand reporting to non-financial professionals such as lawyers or accountants as soon as possible, which is recommended by FATF.
Led by Commissioner Kim Young-kwa, KOFIU is affiliated with the Financial Services Commission, the nation's top financial policymaker headed by Chairman Chin Dong-soo.
Source: Korea Times
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