As the South Korean government steps up its anti-money laundering (AML) oversight, major crypto exchanges in the country are voluntarily complying while banks are reportedly failing to meet the guidelines for compliance. South Korea has also been discussing ways to boost crypto-related AML measures with the U.S.
Government Concerned About Bank’s AML Compliance
As Korean Crypto Exchanges Step Up AML Compliance, Banks Are FailingSouth Korea’s AML directives currently do not apply to cryptocurrency exchanges directly. The government has made banks responsible for monitoring and reporting any crypto-related money laundering activities.
In an effort to comply with the country’s AML directives, most major South Korean banks have been adding compliance officers.
NH Nonghyup Bank, for example, “recently created an independent unit exclusively to handle compliance-related issues,” the Korea Times reported on Friday, adding that the bank increased the number of its employees working in that unit from 16 to 23. Nonetheless, the Joongang Daily noted on Saturday:
Despite the effort, Korea’s financial watchdog, the Financial Supervisory Service [FSS], warned that the bank has not sufficiently improved its internal control system.
Collaborating with the US
South Korea has also been collaborating with the U.S. to boost AML measures relating to cryptocurrencies. The Korea Times described:
"U.S. Treasury Secretary Sigal Mandelker has discussed with FSC Vice Chairman Kim Yong-beom how to boost anti-money-laundering measures especially related to crypto-assets in addition to international cooperation measures."
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