The financial regulator of South Korea releases a new set of anti-money laundering (AML) guidelines to transactions in virtual currencies.
The main financial regulator of South Korea has released a series of new guidelines on anti-money laundering (AML) for the virtual currencies, according to this week’s press release.
The press release says that the Financial Services Commission (FSC) conducted on-site inspections of three domestic banks - Nonghyup, Kookmin, and Hana Bank, and the results gave rise to the update of the guidelines against money-laundering (AML).
The new guidelines emphasize that crypto currency exchanges must conduct Customer Due Diligence (CDD) and Enhanced Customer Identification (EDD) to ensure that the objectives of a company and funding sources of users are legislative. So, if a company refuses to provide information for the verification of the customer or is not able to do it, the guidelines point out that all transactions of that entity will be rejected or terminated.
In accordance with the revised guidelines, the exchange of cryptography are also responsible for making sure that the foreigners do not use the local exchanges of cryptography, criminals are not using the personal accounts of other persons for money laundering, and that there are no suspicious transactions and the processing of payments, CCN news site writes.
In May, the FSC joined a crypto currency probe which was launched by the Financial Supervisory Service (FSS) in South Korea into AML compliance with crypto currency exchanges.