South Korea Interrogating Leading Banks in Light of Suspicious Activity

South Korea Interrogating Leading Banks in Light of Suspicious Activity
  • FSS is investigating South Korea’s leading banks for unethical crypto transactions.
  • FSS requested banks to submit an audit on noteworthy foreign exchange transactions.

Two of the South Korean largest banks are under exploration by the Nation’s Financial Supervisory Service (FSS) for potential links with unethical crypto-based transactions. Woori and Shinhan banks are suspected to be part of the $3.4 billion unaccounted cross-border payment. 

Financial regulators have calculated an amount of $1.3 billion from the five branches of Woori bank and $1.9 billion from eleven branches of Shinhan bank. And all these were made over 17 months, from Feb 2021 to July 2022. 

A senior authority from the FSS reported in the news last week that some of these abnormal flows of money included crypto exchanges too. Now the FSS has requested every bank to submit an audit by the end of July, regarding the accountable foreign transactions, or crypto payments made between 2021 to Q1, and Q2 of 2022.

The banks refused to state the accusation. And the FSS raided 15 locations in the last week alone, which incorporates the seven largest crypto exchanges as well.

FSS reported:

“We’ll take stern measures against the banks that have not abided by forex rules or those who have violated regulations against money laundering”

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