FIU: "78% of Financial Institutions Fall Short in Self-Improvement for Anti-Money Laundering"

FIU Holds Council with Related Agencies
Major Improvements Planned for System Implementation Assessment

The Financial Intelligence Unit (FIU) announced that it will significantly improve its system implementation assessment to strengthen the capabilities of financial institutions, citing a lack of expertise in anti-money laundering (AML) operations.

On the afternoon of December 22, the FIU held the "3rd 2025 Anti-Money Laundering (AML) Related Agencies Council." During the meeting, the FIU discussed the results of the 2025 AML system implementation assessment and plans to improve next year's evaluation indicators.

This year's system implementation assessment found that the overall level of basic AML management systems-such as the establishment of internal regulations and diligent CTR (Currency Transaction Report) submissions-was excellent. However, areas requiring greater AML expertise, such as the validation of suspicious transaction extraction criteria and independent audits (internal audits of the institution's AML work), were found to be somewhat lacking. Notably, only 22% of institutions identified and addressed deficiencies through internal audits, indicating that voluntary inspection and improvement activities by financial companies remain insufficient.

The AML system implementation assessment is a system that comprehensively evaluates the level of money laundering exposure risk and AML management capabilities for all financial companies subject to anti-money laundering obligations. The goal is to advance AML work, encouraging financial institutions to independently identify and improve weak areas. Based on the assessment results, outstanding institutions are rewarded, while underperforming ones are subject to inspections and on-site reviews.

Starting next year, the FIU plans to award additional points if responsible personnel hold professional certifications, in order to enhance AML expertise and promote autonomous activities by financial institutions. Specifically, extra points will be given if the reporting officer overseeing AML work and the head of the independent audit team possess AML-related certifications. To further encourage active AML efforts, a qualitative assessment will be newly introduced. Outstanding cases will be shared across the industry to raise the overall AML standards of the financial sector.

Going forward, financial institutions with high exposure to money laundering risks but insufficient management levels will receive point deductions. The evaluation of money laundering exposure risks will also be refined. For example, the importance of each indicator will be classified into four levels and scored differently, based on analyses such as the correlation between FATF recommendations and suspicious transactions.

The FIU will also completely revise the "Reference Casebook for Suspicious Transaction Types" to improve the extraction of suspicious transactions by financial companies and the quality of suspicious transaction reports (STRs) submitted to the FIU. The revision will reflect the latest money laundering trends and provide specific methods and supporting materials for identifying suspicious transactions by transaction type, thereby encouraging more robust suspicious transaction reporting. Case studies related to private lending and venture capital will also be enhanced or newly added.

Meanwhile, the FIU reviewed the readiness for the implementation of the amended anti-terrorism financing laws, which are scheduled to take effect on January 22 next year, and requested active cooperation from relevant agencies to ensure the amended laws are implemented smoothly in the field.