FSS concluded that KakaoBank’s anti-money-laundering team lacks a monitoring process, relying only on receiving tips from other teams.
As a result of weak monitoring, the online lender failed to ring the alarm on several cases that involved suspicious money transfers overseas. For instance, the bank didn’t bolster measures against money laundering to ensure transparent transactions for companies subscribing to the online lender’s banking service. It also didn’t have a system to assess the risk of money laundering via new financial products.
FSS also urged KakaoBank to update clients’ English names and home or work addresses to strengthen its capacity for accurate customer identification.
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