The Financial Action Task Force (FATF) has advised the South Korean government to strengthen its monitoring of financial companies in relation to money laundering prevention and terrorist financing prevention.
“The South Korean government is well aware of the risk of money laundering and terrorist financing and is making positive results based on reliable systems,” the FATF said, adding, “In addition, it is effectively utilizing financial information and data and it has been very successful in confiscating criminal proceeds.”
Still, it also pointed out that designated non-financial businesses and professions such as lawyers and accountants must fulfill the duty of money laundering prevention and terrorist financing prevention as well, adding, “Systems need to be improved so that financial companies can be under closer monitoring, corporate bodies and trusts can be kept away from money laundering, and investigation and indictment related to money laundering can be given priority.”
In the FATF’s latest assessment by country, North Korea remained one of the high-risk jurisdictions subject to a call for action, in which no financial company can open an overseas office. In addition, the FATF included Iran in that category again after it failed to improve its systems by January 2018.