Woori ups transaction monitoring

Woori Bank has upgraded its anti-money laundering (AML) systems, practices and procedures ahead of an evaluation by the Financial Action Task Force (FATF) and the implementation of new regulations, the financial institution announced Friday.

The reforms are wide ranging and far reaching. Woori Bank’s money laundering prevention division has been upgraded to a center, and the workforce tasked with the relevant functions has been increased to 110 from 36. The title of person in charge of the work has been raised higher on the organizational chart to increase accountability.

The most significant upgrade is the implementation of an international best-practices triple-confirmation process. A Know-Your-Customer (KYC) team has been established in all branches and departments to monitor transactions. Those transactions are reviewed by an employee of the anti-money laundering center. They are then reviewed by internal auditors.

Woori said that it will continue to educate its staff and develop expertise with respect to anti-money laundering and that it will continue to develop its systems and consult outside experts.

“The organizational reform is the result of the [Korean] financial authority’s proposal on the need for local financial companies to adopt an internal confirmation systems equivalent to those found in advanced economies ahead of the tougher FATF mutual evaluations and money laundering regulations,” a Woori Bank official said.

Starting July, a new monitoring regulation proposed by the FATF, a Paris-based intergovernmental organization created by the G-7, will be adopted in the Korean market. While financial companies have in the past received guidelines, the requirements are now regulations. It is now a requirement to review anti-money laundering procedures and maintain records. Violations could result in fines of 100 million won ($86,160).

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]