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AML/CFT Legislation

AML/CFT Legislation in Korea

The legislations most relevant to the Korean government's fight against money laundering and terrorist financing include the Financial Transaction Reports Act (FTRA), the Proceeds of Crime Act (POCA) and the Act on Prohibition Against the Financing of Terrorism and Proliferation of Weapons of Mass Destruction (PFOPIA).

The FTRA provides for preventive measures, such as the establishment and operation of the KoFIU, and other measures to be undertaken by financial institutions, such as CDD, STRs, and CTRs.

The POCA criminalizes money laundering, and provides for the government's authority to preserve and confiscate criminal proceeds

The PFOPIA provides for the criminalization of terrorist financing and designation of individuals and entities with whom financial institutions cannot conduct financial transactions without prior approval by the Financial Services Commission.