South Korea’s FIU Strengthens AML Laws to Tackle Crypto Crimes

• FIU strengthens AML laws to counter rising cryptocurrency-linked crimes, focusing on oversight, compliance, and real-time detection measures.
• Authorities introduce standardized AML inspections to prevent illicit transactions, targeting virtual accounts and unauthorized remittance activities.
• A joint response team is established to enhance AML enforcement and mitigate financial security risks tied to digital asset-related crimes.

South Korea’s Financial Intelligence Unit (FIU) is reinforcing its Anti-Money Laundering (AML) laws to address rising financial crimes involving cryptocurrencies. The Financial Services Commission (FSC) held a key meeting to discuss countermeasures against evolving money laundering techniques. 

Regulatory Overhaul to Address Crypto-Related Risks

Strict AML regulations now operate at the FIU because financial offenses involving cryptocurrency have increased. A meeting of the AML Inspection Trustee Council at the FIU on March 5th 2025 took place to evaluate AML risk components and create updated AML framework rules. 

Head Park Kwang of FIU conducted meetings with representatives from 11 institutions which included the Financial Supervisory Service and Ministry of the Interior and Safety and other financial officials for the discussions.

The council’s main focus was strengthening regulations to curb illicit transactions facilitated by cryptocurrencies. The FIU identified new money laundering methods, including virtual accounts and unauthorized remittance practices, requiring immediate regulatory intervention. Authorities are developing tailored annual inspection plans to mitigate these risks.

Key Discussions on AML Standardization

The AML Inspection Trustee Council concentrated on refining AML oversight mechanisms to prevent fraudulent activities. Officials discussed strategies to enhance compliance and improve real-time detection of suspicious transactions. A priority remains to ensure uniformity in AML inspections across institutions to eliminate regulatory loopholes.

Authorities are aligning these measures with international regulatory efforts. The FIU’s latest initiatives mirror global trends where financial regulators are tightening controls on crypto-related transactions. The focus is on improving AML frameworks to address vulnerabilities that cybercriminals exploit. The FIU is forming a ‘People’s Livelihood Crime AML Joint Response Team’ in collaboration with financial agencies. This team will actively detect and address AML weaknesses, working closely with relevant institutions. Strengthening financial security remains a top objective amid the rise in crypto-related crimes.