The Korea Financial Intelligence Unit (KoFIU) of the Financial Services Commission (FSC) attended the general meeting of the Financial Action Task Force (FATF) in Buenos Aires for six days starting from October 29 with the Supreme Prosecutor’s Office and the Ministry of Justice and reached an agreement that they need to pay more attention to prevent money laundering and terrorism financing using virtual currencies.
At the meeting, the South Korean delegation explained how the South Korean government is dealing with virtual currencies and the member countries of the FATF reached a consensus that the likelihood of virtual currency-based money laundering is on the rise in the form of virtual currencies not transparent in terms of trading processes and services hindering capital flow tracking by means of random trading. The member countries agreed to have another meeting in May next year to discuss the same issues.
The FATF also maintained its sanctions on North Korea and Iran for their non-compliance with its international standards. The FATF adopted a joint statement and urged them to follow its international standards. At present, North Korea and Iran are subject to Counter-measure and Black-list, respectively. The former is the highest level of restriction in the FATF and the latter is to show that countries subject to it have significant flaws in their money laundering prevention systems.