"FSC to strengthen internal control evaluation standards…responding to virtual asset money laundering risks"

Financial authorities plan to significantly strengthen internal controls and anti-money laundering (AML) evaluation standards to prevent illegal money laundering through financial companies.

On the 2nd, according to the industry, the Financial Intelligence Unit (FIU) of the Financial Services Commission said it has formed a task force (TF) with AML evaluation sectors such as banks, securities, insurance, virtual assets, electronic finance, and lending businesses to prepare new evaluation criteria. The revision is expected to be applied as early as the first quarter of next year.

The FIU currently evaluates approximately 5,000 financial firms twice a year for money laundering risk exposure and whether internal controls are functioning. The authorities plan to adjust about 200 detailed criteria in stages according to importance and are also considering deducting points if a money laundering risk score falls below a certain threshold.

If the new standards are introduced, the virtual assets sector, recently identified as vulnerable to money laundering, is expected to become a priority target for management and supervision.