FSS: "Bank On-site and Self-inspections Reveal Suspicious Foreign Exchange Remittance Transactions Worth 8.5 Trillion Won"

[Asia Economy Reporter Song Hwajeong] The Financial Supervisory Service (FSS) revealed that suspicious abnormal foreign exchange remittance transactions identified through banks' self-inspections have exceeded 8 trillion won.

According to the FSS on the 14th, simultaneous on-site inspections of Woori Bank and Shinhan Bank, along with self-inspections conducted across all banks, showed that as of the 12th, the total suspicious transactions amounted to approximately $6.54 billion (about 8.5412 trillion won).

The scale of abnormal foreign currency remittance transactions identified during the on-site inspections at Woori Bank and Shinhan Bank (provisional) involved 26 companies (23 companies excluding duplicates), totaling about $3.39 billion. This figure increased by one company and $20 million compared to the interim inspection announcement on the 27th of last month. The FSS expects this number to rise further until the completion of the inspection. The FSS plans to share relevant information with related agencies such as the Korea Customs Service for their reference in operations concerning the related companies.

Additionally, the banks' self-inspection results showed suspicious abnormal foreign exchange remittance transactions involving 53 companies (46 companies excluding duplicates), totaling about $3.15 billion. This is an increase compared to the interim inspection announcement, which reported $5.37 billion and 44 companies as the main inspection targets.

Regarding the types of suspicious transactions identified through self-inspections, cases included ▲ frequent deposit transactions from banks operating accounts linked to virtual asset exchanges (Shinhan, Jeonbuk, Nonghyup, K Bank) ▲ cases where the same representative or overlapping offices and some employees with other companies raised doubts about their authenticity ▲ violations of the Bank of Korea reporting obligations under Article 16 of the Foreign Exchange Transactions Act when remittances were made by third parties other than the transaction parties ▲ large-scale remittances suspicious of illegality compared to the company's business history and scale, requests for account inquiries by investigative agencies, and other cases suspected of abnormal transactions.

The FSS plans to complete inspections of Woori Bank and Shinhan Bank by the 19th and may extend the period if necessary. Furthermore, additional inspections will be conducted on other banks where suspicious abnormal foreign exchange remittance transactions have been identified.

An FSS official stated, "We plan to take strict measures against illegal and unfair acts confirmed through the inspection in accordance with relevant laws and procedures, and if necessary, we will share related information with relevant agencies."