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[Alpha Biz=(Chicago) Reporter Kim Jisun] The Financial Supervisory Service has begun sanctions against IBK Industrial Bank of Korea, which has not reported dozens of transactions for more than five years even though it has to report large cash transactions to the authorities to prevent money laundering.
The Industrial Bank of Korea is said to have neglected to inspect the high-value cash transaction (CTR) system, leaving out some types of high-value cash transactions and delaying reports.
According to financial authorities and the financial sector on the 3rd, the FSS will sanction the Industrial Bank of Korea for violating the Act on the Reporting and Use of Specific Financial Transaction Information. The level of sanctions is said to be at the level of "notification of retirees' violations" to law-abiding officers at the time. The Financial Supervisory Service sent a preliminary notice to the Industrial Bank of Korea containing such sanctions and asked it to submit its opinion by early this month.
The Industrial Bank of Korea has been subject to sanctions by the Financial Supervisory Service for omitting transactions on high-value cash transactions for a long time. The special law requires financial firms to report large cash transactions worth more than 10 million won a day to the Korea Financial Intelligence Unit (FIU) within the deadline.
The Industrial Bank of Korea reportedly reported to the head of the FIU only in March this year about 70 cases of high-value cash transactions that took place between July 2017 and July 2019. The deadline for reporting is 30 days, but it was not reported until five years and eight months later.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
