South Korea's FSC Bolsters Anti-Money-Laundering Efforts with Crypto Asset Analysis Upgrade
The Financial Services Commission (FSC) in South Korea has announced plans to expand its investment in crypto-asset analysis and tracking solutions. The commission aims to strengthen the suspicious-transaction analysis capabilities of its anti-money-laundering watchdog, the Financial Intelligence Unit.
According to the FSC's budget materials submitted to the National Assembly on September 3, the commission will increase the budget for introducing a virtual-asset analysis and tracking solution by 1.93 billion won (approximately $1.4 million). An additional 11.4 billion won (about $8.3 million) will be allocated for the development of an AI-based screening and analysis system.
The FSC believes that existing systems have limitations in tracing fund flows due to the increasing complexity of money-laundering methods with advances in blockchain technology. The new system is expected to enable more precise analysis of suspicious transactions involving virtual assets, improving the completeness of information provided to law enforcement agencies.