South Korea to investigate currency transactions related to crypto
South Korean watchdogs have reportedly opened inquiries into ‘abnormal’ currency transactions worth $3.1 billion linked to crypto investments suspected of money laundering.
According to the Financial Times, the transactions took place in two of the largest commercial banks in the country: Woori Bank and Shinhan Bank. The Financial Supervisory Service said such moves worth 4.1 trillion Korean won were also made since February 2021 and involved crypto exchanges and a domestic trading company.
“We will take strict action against the banks that have not complied with the currency rules or those that have violated the anti-money laundering regulations,” FSS commented.
All Korean banks have been asked by the FSS to conduct an internal review of all large foreign exchange transactions made between January 2021 and June 2022 for possible similar transactions by the end of this month, after being informed of the irregular deals in June.
Global authorities are increasingly investigating the ties between traditional financial firms and the crypto industry and are stepping up enforcement activity in the digital asset sector in response to the investigation. The Tax Office and the prosecuting authority will be informed of any other abnormal transactions found from the notification.
Examination of Forex Records
The FSS also launched an investigation into the currency records of local banks following suspicious activities reported at a branch of Woori Bank. Such activities amounted to 800 billion won or 616 million dollars in the Seoul branch in 2021. A single bank branch conducted more than 145 times the average foreign exchange trade, which raised suspicion.
The bank reported the suspicious trading records to the financial authority following an internal audit. As soon as the FSS received the report, it conducted an on-site investigation at the branch.
South Korean watchdogs have reportedly opened inquiries into ‘abnormal’ currency transactions worth $3.1 billion linked to crypto investments suspected of money laundering.
According to the Financial Times, the transactions took place in two of the largest commercial banks in the country: Woori Bank and Shinhan Bank. The Financial Supervisory Service said such moves worth 4.1 trillion Korean won were also made since February 2021 and involved crypto exchanges and a domestic trading company.
“We will take strict action against the banks that have not complied with the currency rules or those that have violated the anti-money laundering regulations,” FSS commented.
All Korean banks have been asked by the FSS to conduct an internal review of all large foreign exchange transactions made between January 2021 and June 2022 for possible similar transactions by the end of this month, after being informed of the irregular deals in June.
Global authorities are increasingly investigating the ties between traditional financial firms and the crypto industry and are stepping up enforcement activity in the digital asset sector in response to the investigation. The Tax Office and the prosecuting authority will be informed of any other abnormal transactions found from the notification.
Examination of Forex Records
The FSS also launched an investigation into the currency records of local banks following suspicious activities reported at a branch of Woori Bank. Such activities amounted to 800 billion won or 616 million dollars in the Seoul branch in 2021. A single bank branch conducted more than 145 times the average foreign exchange trade, which raised suspicion.
The bank reported the suspicious trading records to the financial authority following an internal audit. As soon as the FSS received the report, it conducted an on-site investigation at the branch.
