Money changers that falsified currency exchange ledgers or failed to report large cash transactions of 10 million won or more have been caught en masse by customs authorities.
The Korea Customs Service said Friday that it selected 104 of the country's 1,320 money changers and, after conducting an intensive crackdown from March through the first half of the year, uncovered illegal activity at 47 of them, or 45.2 percent.
The Korea Customs Service conducts intensive crackdowns on money changers twice a year, in the first and second halves. This crackdown was carried out to block currency exchange offices from being exploited as channels for moving funds tied to transnational crime, including proceeds from voice phishing.
The inspection confirmed a total of 63 violations across the 47 money changers. By type, cases of falsifying or failing to submit currency exchange ledgers were the most common, at 34 firms. Another 13 firms were caught violating operational standards, such as failing to maintain currency exchange ledgers or failing to use or retain exchange certificates.
In addition, authorities confirmed eight firms that exceeded sales limits, two that failed to report purchases exceeding $10,000, five that failed to report large cash transactions of 10 million won or more under the Act on Reporting and Use of Certain Financial Transaction Information, and one that violated registration requirements.
Based on the results, the Korea Customs Service imposed business suspensions on three firms. Other measures included fines on 27 firms, warnings to 42 firms, and corrective orders to two firms. Firms that failed to report large cash transactions will be referred to the Korea Financial Intelligence Unit (FIU).
Under the revised Foreign Exchange Transactions Act, which takes effect on December 3, the Korea Customs Service plans to apply "one-strike-out" measures, such as registration cancellation, to operators of illegal money remittance businesses.
