On January 22, 2020, Hyebin Kang, head of Argos business, gave an interview to “Crypt Today” on Pax Economy TV about anti-money laundering solution and the revision of Act on Reporting and Using Specified Transaction Information (hereinafter referred to as the Specified Information Act)

The interview was conducted with the purpose of understanding anti-money laundering on a wide range of issues in relation to the revision of Specified Information Act. Discussions on the definition of KYC and AML and how VASPs (Virtual Asset Service Providers) should cope with the revision were held.

Highlights of the interview

Q. Please explain the terms. What’s KYC/AML?

A. KYC stands for Know Your Customer. KYC refers to obtaining and verifying information about the identity of customers before doing business with them. Before a financial transaction takes place, you check and ensure your customer is really who he claims to be. For example, when you open a bank account, you are going through KYC process by submitting your ID document and basic personal information to the bank.

AML stands for Anti-Money Laundering. It is to prevent disguising illegal funds as legitimate source of money. Argos AML Screening service analyzes the money laundering risks of customers by with its vast AML database including the list of politically exposed persons, sanction lists and watch lists published by international organizations and governmental bodies.

Q. What should virtual asset service providers prepare after the revision to the Specified Information Act is passed?

A. Major changes in the revised Specified Information Act include ① Virtual Asset Service Provider registration system ② applying customer due diligence and anti-money laundering duties to VASPs, ③ managing transaction details of each customer ④ duties to report to the Korean Financial Intelligence Unit. All virtual asset service providers, including cryptocurrency exchanges, need to prepare the KYC/AML system and Information Security Management System (ISMS) certification to meet the new regulatory requirements. For cryptocurrency exchanges where the KYC and AML system is not in place or insufficient, it is time to have them prepared to avoid high fines or administrative penalties.

Check out the full interview here https://youtu.be/WWV4PaIIeAY?t=728

In need for KYC〮AML? Argos is here with you.

Austin Mitchell Lewis

Author Austin Mitchell Lewis

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