Standards have been established to impose penalties on virtual asset operators who fail to report suspicious transactions properly.
Virtual asset operators include financial companies (banks, securities, cards, etc.), general companies (casinos, etc.), and private businesses (such as currency exchange).
The Financial Services Commission announced on the 10th that it would announce the change of the’Inspection and Sanction Regulations on Reporting of Specific Financial Transaction Information, etc.’
The key is to establish a new standard for imposing fines applied to virtual asset providers.
The duties of internal control, data and information preservation, and the duty of virtual asset providers to take measures were added as items to be imposed on the fines.
An official from the Financial Services Commission explained, “If you violate the obligations such as verifying the identity of customers, reporting suspicious transactions, reporting large amounts of cash transactions, and storing data, fines will be imposed.”
The Financial Services Commission has also prepared a clause that can reduce the penalty by 50%, taking into account the burden of violators and the content and circumstances of the violating act.
However, for small business owners, a 50% reduction is not subject to the ‘50% limit’ as the penalty may be excessive.
This means that the penalty can be reduced by 50% or more.
For example, let’s say that a private business with an annual income of 50 million won violates 20 customer verification obligations and the penalty amount is set at 180 million won.
If the 50% limit is applied, it can be reduced to 54 million won, but it is a heavy burden on the business operator beyond the annual gross income.
In this case, a reduction of 50% or more is possible.
Changes in the regulations will take effect immediately after the notice (March 11 to April 20).
/yunhap news
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