Korea financial regulator will check whether three domestic banks abide by the recently introduced anti-money laundering rules of crypto currency exchange accounts
According to Monday's statement, the Financial Services Commission (FSC) and the Financial Intelligence Unit (FIU) will conduct on-site inspections of NongHyup, KB Kookmin and KEB Hana from April 19th to 25th.
At the beginning of this year, FSC banned domestic banks from providing virtual anonymous accounts to cryptocurrency exchange customers from a virtual anonymous account starting in February to prevent money laundering and the illegal outflow of capital through cryptocurrencies
Since then, at least six banks – NongHyup, KookMin, Shinhan, KEB Hana, IBK and JB – are developing the implementation of new procedures, three of which will be reviewed later this month.
It is worth noting that among these institutions, the Agricultural Bank of China has been providing the real name verification process for Coinone and Bithumb, two major cryptocurrency exchanges in Korea.
The focus of this inspection will be on whether the bank fully complies with the new real-name verification rules for South Korea's cryptocurrency transactions, including the number of accounts held on these exchanges and the corresponding deposit amount, which the regulator stated in the announcement.
This plan was conducted after an on-site inspection by the financial oversight agency in January and confirmed that a report on March 22 suggested that regulators may soon initiate a second survey this month
In addition, the FIU urges other financial institutions not included in the inspection to conduct inspections on their own and endeavor to comply with the new anti-money laundering and real-name verification guidelines.
Korean won image by Shutterstock