When the Financial Services Commission operates the FIU analysis system such as Bitcoin, Bithumb blocks transactions in countries that do not perform money laundering

The Financial Information and Analysis Institute (FIU) of the Financial Services Commission announced on the 8th that it completed the construction of the next-generation anti-money laundering system* on December 17, 20, and started operation in earnest.

The next-generation system is a new system built by investing 20 billion won of project cost* for about two years to solve the aging problem of the existing system (established in ’02) and to efficiently process the increasing report information in a timely manner. Initial errors were discovered and taken measures through an emergency response system* with related organizations, and user inquiries and opinions for improvement were promptly handled to complete the next-generation business in a stable manner.

As a result of analyzing the operation situation for two months after the next-generation system operation, FIU reported that it confirmed the achievements of ❶ efficiency of the suspicious transaction reporting system, ❷ reinforcement of audit and analysis capabilities, and ➌ reinforcement of information security, which are the goals of the next-generation business.

The Financial Services Commission said, “By adding new administrative information necessary for analysis and reinforcing the information search function, advancement of strategic analysis, and introduction of dedicated programs for account, person, and statistical analysis, detailed and sophisticated money laundering analysis is possible, so the quality of the review and analysis is higher. He said it has increased.

An official from the Financial Services Commission said, “We will develop a more sophisticated and intelligent system to effectively respond to money laundering crimes that are becoming diversified and complex due to the emergence of new means of transaction such as virtual banking and the introduction of new digital technologies.”

▲ The Financial Services Commission, Bithumb, blocking transactions in countries that have not implemented money laundering prevention after operating the FIU analysis system

Bithumb (CEO Heo Baek-young), Korea’s leading virtual asset exchange, released a press release on the 9th that it will block transactions to residents of countries that do not comply with the anti-money laundering (AML) designated by the International Anti-Money Laundering Organization (FATF).

Bithumb announced at last month’s FATF general meeting that as four new countries were added to countries that did not comply with the international anti-money laundering standards, they were reflected in their own “regulation on anti-money laundering activities” and implemented immediately. According to the regulations, users in countries that have not implemented money laundering prevention are not allowed to sign up for new members, and the accounts of existing members are also suspended.

21 countries in which transactions are restricted are’high risk countries requiring action’ including Iran and North Korea, and 19 countries of’reinforced observational countries’ (including 4 new countries including the Cayman Islands, Burkina Faso, Morocco, and Senegal). It is a country.

Bithumb is preparing and implementing its own anti-money laundering policy, and is actively working to prevent money laundering by reinforcing customer identification (KYC) procedures such as verifying the residence of all members.

Last year, Octa Solution and AML and Fault Detection (FDS) solution specialized for virtual asset providers were jointly developed, and a specialized solution from Chainnallysys, a US blockchain analysis company, and Dow Jones’ solution were also introduced.

It also established its own anti-money laundering center for the first time in the industry. The center is making every effort to prevent virtual asset crime by continuously monitoring customer identification (KYC) and suspicious transaction reporting (STR). In addition, the system and status of anti-money laundering are regularly checked through banks linked to real-name accounts.

A Bithumb official said, “We will continue to supplement the relevant regulations and systems to create a transparent and sound virtual asset market and protect investors.”

FINTECHPOST