The Korea Financial Intelligence Unit (KoFIU) within the South Korea Financial Services Commission has launched a taskforce to revamp rules under the Act on Reporting and Using Specified Financial Transaction Information, with the stated aim of strengthening Korea’s anti-money laundering and counter-terrorist financing (AML/CFT) framework and preparing for the Financial Action Task Force (FATF) mutual evaluation scheduled for 2028. Planned workstreams include tightening requirements for virtual asset service providers (VASPs) by extending the travel rule from transfers of KRW 100 million or more to transfers below that threshold, and developing AML measures ahead of impending stablecoin rules and expected ecosystem changes. The taskforce will also consider reforms aligned with FATF recommendations, including introducing a tool to suspend activity on suspicious accounts during investigations to prevent dissipation of criminal proceeds and extending AML rules to attorneys, certified public accountants and tax accountants. A third track focuses on improving the effectiveness of AML requirements and making the inspection and sanctions system more reasonable and impartial. The taskforce will meet twice per month, and KoFIU plans to develop a set of AML improvement measures in the first half of 2026.
South Korea Financial Services Commission 2025-12-29
South Korea Financial Services Commission’s KoFIU launches taskforce to overhaul AML rules and expand VASP travel rule below KRW 100 million
The Korea Financial Intelligence Unit has launched a taskforce to enhance the anti-money laundering and counter-terrorist financing framework for the 2028 Financial Action Task Force evaluation. Key initiatives include tightening virtual asset service provider requirements, extending AML rules to legal and accounting professionals, and introducing tools to suspend suspicious accounts. The taskforce aims to develop AML improvement measures by mid-2026.