On the 10th, the Financial Services Commission announced a change in regulations to reflect the newly subject matters subject to fines according to the revision of the Specific Financial Information Act and to consolidate and abolish the regulations related to fines.
First, as a new item of imposing fines, △internal control duty, △data information preservation duty, and △the duty to take action by the virtual banking business operator were added. The Special Money Act, which takes effect on the 25th, requires reporting suspicious transactions as internal control obligations, designating a person in charge of reporting high-value cash transactions, and compulsory preparation of business guidelines and employee training. In addition, data and information related to suspicious transactions or high cash transactions are to be preserved, and transactions are made only with customers who have undergone separate management of customer transaction details and customer verification. The system for imposing fines was also changed to reflect the contents of the law.
However, the reasons for the reduction of the standards for imposing fines were also supplemented. Since July 2019, the penalty has been increased from 10 million won per case to 30 million to 100 million won per case. In addition, as there are’regulations according to financial institution inspections and sanctions’ and fairness, the penalties for violations of the Special Act were taken into account, such as the violator’s realistic ability to bear, the contents and circumstances of the violation.
First, under the current regulations, if the estimated fine for negligence exceeds 10% of the size of the business operator (capital or total capital), the reduction is allowed within the excess. The reduction limit was only recognized up to 50% of the planned amount, but the 50% limit will be abolished in the future, reflecting realistic conditions such as the burden capacity of relatively small business owners.
In addition, the’business size’ is also classified into financial companies, general companies, and individual business owners in consideration of the characteristics of each type and stipulated.
The notice period for changes to this sanctions rule is from 11th to April 20th. When the change notice is over, it is immediately announced and implemented. If you have any comments on the notice, you can send it to the Planning and Administration Office of the Financial Information Analysis Institute of the Financial Services Commission. The full text of the amendment to the sanctions regulations can be found on the website of the Financial Information Analysis Institute.
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