Banks do not check suspicious remittances abroad
The Financial Surveillance Service (FSS) announced on July 27 that it is investigating abnormal foreign exchange transactions in the domestic banking sector, and the scale of the transactions amounts to about 7 trillion won, of which about 4 trillion won at Shinhan and Woori Banks.
“Most of the cases are from domestic cryptocurrency exchanges to Hong Kong, Japan and China and we consider them to be cryptocurrency-based money laundering and illegal exchange transactions,” he said. he said, pointing out that banks were failing in internal control.
The survey began earlier this month, targeting companies that have paid out at least US$50 million after their founding in 2021, frequent deposits and withdrawals from cryptocurrency-related accounts, and payouts. frequent at some bank branches.
“The corresponding foreign exchange transactions totaled US$5.37 billion during the period from January 2021 to June this year and 44 trading companies are involved as well as most of the banks in the sector,” the FSS explained, continuing “It cannot be said with certainty that every money transfer is illegal, and we will closely analyze bank data and launch additional on-site investigations whenever necessary.”
During the previous on-site investigation in Shinhan, the FSS discovered $2.06 billion in abnormal payments, which occurred on 1,238 separate occasions at 11 branches over approximately 18 months. From May 2021 to June 2022 in Woori, 1.31 billion US dollars were abnormally remitted in 931 different cases.
Most remittances to both banks started from domestic cryptocurrency exchanges. According to industry sources, the highest probability includes cryptocurrency arbitrage trading and money laundering. 2.5 billion US dollars out of 3.37 billion US dollars went to Hong Kong while 400 million US dollars, 200 million US dollars and 160 million US dollars respectively went to Japan, the United States and in China. The money was not sent to foreign cryptocurrency exchanges, but to general companies.