FSS warns KakaoBank to improve its AML system

Monday 15 November 2021 10:11 CET | News

Financial Supervisory Service (FSS), South Korea’s financial watchdog, has warned KakaoBank to improve its monitoring system that protects against money laundering.

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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Keywords: banks, AML, regulation, transactions , risk management
Categories: Fraud & Financial Crime
Countries: Korea, Democratic People's Republic of
This article is part of category

Fraud & Financial Crime