Big brother coming to a bank near you soon
Dec 30,2004
Beginning in 2006, banks and other financial service companies will have to inform the government of customers’ cash transactions that amount to more than 50 million won ($48,000), in a bid to prevent money laundering and other illegalities.
Currently, financial service companies are required to report clients’ cash transactions of over 20 million won ― but only if prior suspicions of illegalities exist.
A bill passed the National Assembly yesterday.
The Korea Financial Intelligence Unit, under the Ministry of Finance and Economy, will receive the information. The agency said yesterday it would design enforcement ordinances for the new regulation. Any financial service company that violates the regulation will be fined 5 million won.
“We are considering lowering the threshold for informing to over 10 million won in the long run,” Byeon Yang-ho, head of the intelligence unit, said.
He added that the number of cash transaction cases of at least 50 million won reached 13 million this year.
Since it is difficult to examine such cases one by one, the agency is considering developing a system to screen out the suspicious cases.
by Hong Byeong-gee, Moon So-young
