Strengthening Qualifications for AML Officers in Financial Companies...Mandatory 2-Year Experience Required

Geumbo Institute Announces Revision of 'Anti-Money Laundering Operational Regulations' on the 12th

On the 12th, the Financial Intelligence Unit of the Financial Services Commission announced an amendment to the 'Anti-Money Laundering (AML) Work Regulations' to strengthen the accountability and expertise of financial companies in their AML duties. With this revision, minimum experience requirements for AML reporting officers have been established, and the roles of the board of directors and CEOs have been clarified.

According to the revised regulations, financial companies must appoint AML reporting officers with at least two years of relevant experience. Additionally, position requirements have been strengthened: in the banking sector, the reporting officer must be an inside director or a person in charge of business execution, while in large financial companies, the reporting officer must be at least one rank below the chief compliance officer.

Regarding the board of directors, supervisory authority over the CEO, chief compliance officer, and reporting officer has been specified. The board will also have the authority to oversee the establishment and operation of internal control systems and approve measures to address vulnerabilities. The CEO will be responsible for overseeing the establishment of internal control systems, including preparing AML-related work guidelines, appointing reporting officers, and organizing work units.

The new regulations will take effect on May 13 next year, with the provisions related to the qualifications of reporting officers applying from May 13, 2027. The Financial Intelligence Unit plans to support financial companies' smooth implementation of the system by providing FAQs and conducting sector-specific workshops.

A representative from the Financial Intelligence Unit explained, "This measure is intended to enable financial companies to respond to related risks with enterprise-wide capabilities amid the increasingly sophisticated and specialized money laundering techniques."