Yesterday, Financial Services Commission establishes new regulations for imposing fines before the Act on Reporting and Use of Specific Financial Transaction Information (Specific Financial Transaction Information Act hereafter) takes effect on March 25, 2021.

Newly added fine clauses
The Financial Services Commission added

1. Internal control duty
2. Data and record-keeping duty
3. Virtual asset service providers’ anti-money laundering duty

     In addition, virtual asset service providers should take measures such as designating staff for suspicious transaction report and currency transaction report, preparing internal anti-money laundering policy, and AML training for executives and employees. Data and record related to anti-money laundering should also be preserved for at least five years. The details of each customer’s transaction history should be managed separately. Most importantly VASPs(Virtual Asset Service Providers) can only trade with customers who have been identified through KYC and AML screening process.

     When a virtual asset service provider violates its obligations, administrative disposition differs depending on the criminal motive (whether it was intentional or simply a negligence). The assessment results will be classified into serious, ordinary, and minor, and fines will be imposed differently varying from the legal maximum amount.

ARGOS

“Create A World Where Good People Transact Safely and Keep The Bad People Out.”
info@argos-solutions.io

Author Austin Mitchell Lewis

More posts by Austin Mitchell Lewis