South
Korean watchdogs are reportedly opening inquiries into ‘abnormal’ forex
transactions worth $3.1 billion linked to crypto investments suspected of money
laundering.
According
to the Financial Times, the transactions took place in two of the biggest
commercial banks in the country: Woori Bank and Shinhan Bank. The Financial
Supervisory Service said that such moves worth 4.1 trillion Korean won also
were done since February 2021 and involved crypto exchanges and a domestic
trading company.
“We’ll take
stern measures against the banks that have not abided by forex rules or those
who have violated regulations against money laundering,” the FSS commented.
All Korean
banks have been asked by the FSS to conduct an internal review of all large
currency transactions made between January 2021 and June 2022 for possible
similar transactions by the end of this month, after being informed of the
irregular deals in June.
Global
authorities are increasingly scrutinizing ties between traditional financial
companies and the crypto industry and stepping up enforcement activity in the
digital asset sector in response to the probe. The tax office and prosecutors
will be informed of any other abnormal transactions found from the review.
Investigation on Forex Records
The FSS
also launched an investigation of the forex records of local banks following
suspicious activities reported in one branch of Woori Bank. Such activities
accounted for 800 billion won or $616 million in the branch located in Seoul in
2021. A single bank branch conducted more than 145 times the average amount of
foreign exchange trading, which raised suspicion.
The bank
reported the suspicious trading records to the financial authority following an
internal audit. As soon as the FSS received the report, it conducted an on-site
investigation at the branch.
South
Korean watchdogs are reportedly opening inquiries into ‘abnormal’ forex
transactions worth $3.1 billion linked to crypto investments suspected of money
laundering.
According
to the Financial Times, the transactions took place in two of the biggest
commercial banks in the country: Woori Bank and Shinhan Bank. The Financial
Supervisory Service said that such moves worth 4.1 trillion Korean won also
were done since February 2021 and involved crypto exchanges and a domestic
trading company.
“We’ll take
stern measures against the banks that have not abided by forex rules or those
who have violated regulations against money laundering,” the FSS commented.
All Korean
banks have been asked by the FSS to conduct an internal review of all large
currency transactions made between January 2021 and June 2022 for possible
similar transactions by the end of this month, after being informed of the
irregular deals in June.
Global
authorities are increasingly scrutinizing ties between traditional financial
companies and the crypto industry and stepping up enforcement activity in the
digital asset sector in response to the probe. The tax office and prosecutors
will be informed of any other abnormal transactions found from the review.
Investigation on Forex Records
The FSS
also launched an investigation of the forex records of local banks following
suspicious activities reported in one branch of Woori Bank. Such activities
accounted for 800 billion won or $616 million in the branch located in Seoul in
2021. A single bank branch conducted more than 145 times the average amount of
foreign exchange trading, which raised suspicion.
The bank
reported the suspicious trading records to the financial authority following an
internal audit. As soon as the FSS received the report, it conducted an on-site
investigation at the branch.
