FIU to Strengthen Financial Sector AML Capabilities...AI to Detect Suspicious Transactions

AML Council Held with 16 Related Organizations
Regularization of Financial Institution Risk Self-Assessments
Sector-Specific AML Advancement Task Forces to Launch in Second Half of Year

The Financial Intelligence Unit (FIU) is moving to introduce anti-money laundering (AML) detection methods leveraging artificial intelligence (AI) and other advanced technologies. The agency aims to strengthen financial institutions’ self-assessment of risk, encourage the bolstering of dedicated AML teams and professional talent, and, beginning in the second half of this year, will operate sector-specific ‘AML Advancement Task Forces (TF)’ to raise the finance industry’s capacity to respond to money laundering threats.

On August 27, the FIU held an ‘AML-Related Institutions Council’ with 16 relevant organizations to discuss ways to enhance the finance industry’s key capabilities in combating money laundering.

This council was organized in order to review changes in domestic money laundering risks and vulnerabilities based on last year’s National Risk Assessment (NRA) results, and to further boost the industry’s ability to respond to major money laundering threats.

FIU has analyzed the main AML-related vulnerabilities within the industry and presented countermeasures under four categories: ▲ risk assessment ▲ governance establishment ▲ system advancement ▲ strengthening the roles of associations and central bodies.

First, the financial sector will conduct regular, self-assessment of risks reflecting each sector and institution’s business characteristics, based on the results of the National Risk Assessment. Areas identified as weaknesses in these assessments will receive prioritized allocation of personnel, budget, and IT infrastructure so that management systems appropriate to the level of money laundering risk can be established.

AML organizations and their professionals will also be strengthened. The FIU plans to encourage dedicated departments in financial companies and to induce the elevation of the reporting officer’s rank. To counter new types of money laundering, it will foster and expand talent with expertise in IT and data analysis, as well as create an environment for staff to continually develop their professional capabilities.

AI and other new technologies will be actively used within AML systems. Detection logic will be diversified to spot distributed and bypass transactions, and a data quality management process will be established to regularly verify the accuracy of incoming system data.

The roles of associations and central bodies will also be expanded. Starting in the second half of this year, AML Advancement Task Forces will operate at each association and central body level, sharing the latest sector-specific money laundering cases and global trends. The FIU also plans to initiate the development of standard guidelines as well as joint suspicious transaction report (STR) rules and scenarios.

Ju-Sik Ha, Director of System Operations at FIU, stated, “As money laundering becomes more diverse and complex, financial institutions must move beyond simply upgrading systems or fulfilling formal procedures toward a paradigm shift to substantial internal controls. The roles of associations, central bodies, and related agencies are therefore extremely important, and continued efforts are needed to strengthen the AML framework.” He added, “The FIU will actively support these efforts by continuously improving education, assessment, inspection, and supervision according to each industry sector.”

This content was produced with the assistance of AI translation services.