Act On Reporting And Using Specified Financial Transaction Information


Published: 2012-12-11

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 Article 1 (Purpose)   print
The purpose of this Act is to provide for matters concerning reporting on, and the use of specific information on financial transactions necessary for regulating money laundering and the financing of terrorism using financial transactions, such as foreign exchange transactions, etc. in order to prevent crimes and furthermore, to contribute to establishing sound and transparent order in financial transactions.
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
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 Article 2 (Definitions)   print
The terms used in this Act shall be defined as follows:
1. The term "financial company, etc." means any of the following: <Amended by Act No. 10522. Mar. 31, 2011>
(a) The Korea Development Bank under the Korea Development Bank Act;
(b) The Export-Import Bank of Korea under the Export-Import Bank of Korea Act;
(c) The Industrial Bank of Korea under the Industrial Bank of Korea Act;
(d) A bank under the Banking Act;
(e) An agricultural cooperative and a Nonghyup bank under the Agricultural Cooperatives Act;
(f) A mutual savings bank and the National Federation of Mutual Savings Banks under the Mutual Savings Banks Act;
(g) Agricultural Cooperatives and the National Federation of Agricultural Cooperatives under the Agricultural Cooperatives Act;
(h) Fisheries Cooperatives and the National Federation of Fisheries Cooperatives under the Fisheries Cooperatives Act;
(i) Credit Unions and the National Federation of Credit Unions under the Credit Unions Act;
(j) Community Credit Cooperatives and the National Federation of Community Credit Cooperatives under the Community Credit Cooperatives Act;
(k) Insurance companies under the Insurance Business Act;
(l) Communication agencies under the Postal Savings and Insurance Act;
(m) Casino business operators (hereinafter referred to as "casino business operator") who conduct casino business after having obtained permission under the Tourism Promotion Act;
(n) Persons prescribed by Presidential Decree among those engaged in making financial transactions under subparagraph 2;
2. The term "financial transaction" means any of the following:
(a) Importation, sale, repurchase, brokerage, discount, issuance, redemption, refund, trust, registration or exchange of financial assets (referring to financial assets as referred to in subparagraph 2 of Article 2 of the Act on Real Name Financial Transactions and Confidentiality), or paying interest, discounts or dividends thereof, by a financial company, etc., or conducting such business as an agency, or other transactions dealing with financial assets, which are prescribed by Ordinance of the Prime Minister;
(b) Transactions made in the derivatives market pursuant to the Financial Investment Services and Capital Markets Act, and other transactions prescribed by Presidential Decree;
(c) Exchanging cash or checks with alternatives of cash or checks, prescribed by Presidential Decree at the place of business of a casino business operator;
3. The term "illegal assets" means any of the following:
(a) Gains, etc. from crimes under subparagraph 4 of Article 2 of the Act on Regulation and Punishment of Criminal Proceeds Concealment;
(c) Funds for terrorism under subparagraph 1 of Article 2 of the Act on Prohibition against the Financing of Terrorism;
4. The term "money laundering" means any of the following:
(c) Disguising the acquisition or disposition of assets, or the causes of accrual thereof or concealing the assets, with intent to commit a crime under Article 3 of the Punishment of Tax Evaders Act, Article 270 of the Customs Act, or Article 8 of the Act on the Aggravated Punishment, etc. of Specific Crimes;
5. The term "financing of terrorism" means activities falling under Article 6 (1) of the Act on Prohibition against the Financing of Terrorism.
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
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 Article 3 (Korea Financial Intelligence Unit)   print
(1) The Korea Financial Intelligence Unit shall be established under the Financial Services Commission in order to efficiently perform the following duties:
1. Arrangement, analysis, and provision of matters reported or notified pursuant to Articles 4, 4-2, and 6;
2. Supervision and inspection of affairs conducted by financial companies, etc., under Articles 4, 4-2, 5, and 5-2;
3. Cooperation and exchange of information with foreign financial intelligence services under Article 4 (6) 2;
5. Duties related to those referred to in subparagraphs 1 through 4, which are prescribed by Presidential Decree.
(2) The Korea Financial Intelligence Unit shall perform its competent duties independently, and none of its public officials may engage in duties, other than those provided for in this Act and the Act on Prohibition against the Financing of Terrorism.
(3) Necessary matters concerning the number of personnel, organizational structure and administration of the Korea Financial Intelligence Unit shall be prescribed by Presidential Decree, taking into consideration the independence and political neutrality of its duties.
(4) The head of the Korea Financial Intelligence Unit (hereinafter referred to as the "Commissioner of the Korea Financial Intelligence Unit") shall report on the following matters regarding the performance of duties referred to in paragraph (1), to a regular session of the National Assembly on an annual basis:
1. The number of cases reported by financial companies, etc. under Article 4;
2. The amount of certain information on financial transactions the Korea Financial Intelligence Unit provided to investigation authorities, etc. under Article 7;
3. The number of information exchanges with foreign financial intelligence services under Article 8;
4. Other statistical data related to the duties of the Korea Financial Intelligence Unit.
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
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 Article 4 (Reporting, etc. on Transactions of Suspected Illegal Assets, etc.)   print
(1) Each financial company, etc. shall immediately report any of the following cases to the Commissioner of the Korea Financial Intelligence Unit, as prescribed by Presidential Decree:
1. Where reasonable grounds exist to suspect that an asset given or received in relation to any financial transaction is illegal or the other party to a financial transaction engages in money laundering or financing of terrorism, and the amount involved in the relevant financial transaction is not less than that prescribed by Presidential Decree;
2. Where reasonable grounds exist to suspect that the other party to a financial transaction engages in making installment transactions in order to circumvent subparagraph 1, and the total value of the installments is not less than the amount prescribed by Presidential Decree under the same subparagraph;
3. Where any person who works for a financial company, etc. reports to the competent investigation authority under Article 5 (1) of the Act on Regulation and Punishment of Criminal Proceeds Concealment, or Article 5 (2) of the Act on Prohibition against the Financing of Terrorism.
(2) Even if assets given or received in relation to a financial transaction are less than the amount prescribed by Presidential Decree under paragraph (1) 1 or 2 (referring to the total value, in cases of paragraph (1) 2), where reasonable grounds exist to suspect that the relevant assets are illegal or the other party to the financial transaction engages in money laundering, or financing of terrorism, a financial company, etc. may report such allegation to the Commissioner of the Korea Financial Intelligence Unit.
(3) Where a financial company, etc. files a report under paragraph (1) or (2), it shall clearly state the reasonable ground for such suspicion.
(4) Where a financial company, etc. has filed a report under paragraph (1) or (2), it shall retain each of the following materials related to the relevant report for five years from the date of reporting, as prescribed by Presidential Decree:
1. Data to verify the real name of the other party to a financial transaction;
2. Data on financial transactions subject to reporting under paragraph (1) or (2);
3. Data where a financial company, etc. has recorded reasonable grounds for suspicion.
(5) Where the Commissioner of the Korea Financial Intelligence Unit analyzes matters reported by a financial company, etc. under paragraph (1) or (2), he/she may peruse or make copies of related materials retained by the financial company, etc. under paragraph (4), only to deliberate on whether the reported matters are applicable to the requirements referred to in paragraph (1) or (2).
(6) Where any person who works for a financial company, etc. intends to file or has filed a report under paragraph (1) or (2), he/she shall not disclose such fact to any third person, including the other party to the relevant financial transaction: Provided, That this shall not apply to any of the following cases:
1. Where it is internally disclosed by the same financial company, etc. that the report has been filed, in order to prevent money laundering or financing of terrorism;
2. Where a report equivalent to one referred to in paragraph (1) or (2) is filed concerning a foreign institution that carries out duties equivalent to those referred to in any subparagraph of Article 3 (1) (hereinafter referred to as "foreign financial intelligence services") pursuant to Acts and subordinate statutes of the relevant foreign country.
(7) No financial company, etc. (including anyone who works for a financial company, etc.) that has filed a report under paragraph (1) or (2) shall be liable to pay compensation for damage to the other party to a financial transaction, or interested party thereto, related to the relevant report, unless such financial company, etc. has filed a false report either intentionally or by gross negligence.
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
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 Article 4-2 (Reporting on Large Cash Transactions by Financial Companies, etc.)   print
(1) Where a financial company, etc. has paid to, or received from the other party to a financial transaction, cash (excluding foreign currencies) or other cash-equivalent means of payment prescribed by Presidential Decree (hereinafter referred to as "cash, etc."), at least the amount prescribed by Presidential Decree within the extent of 50 million won, it shall report such fact to the Commissioner of the Korea Financial Intelligence Unit within 30 days: Provided, That this shall not apply to any of the following cases:
1. Paying to, or receiving cash, etc., from another financial company, etc. (excluding entities prescribed by Presidential Decree);
2. Paying to, or receiving cash, etc., from the State, a local government or other public organization prescribed by Presidential Decree;
3. Paying to, or receiving cash, etc., ordinary in nature, which poses no risk of money laundering, as prescribed by Presidential Decree.
(2) Where reasonable grounds exist to suspect that the other party to a financial transaction is making installment transactions with intent to circumvent paragraph (1), a financial company, etc. shall report such fact to the Commissioner of the Korea Financial Intelligence Unit.
(3) The Commissioner of the Korea Financial Intelligence Unit may designate and administer the following organizations as intermediaries to handle data related to reporting on large cash transactions (hereinafter referred to as "intermediaries"):
1. Korea Federation of Banks, an incorporated association, founded pursuant to Article 32 of the Civil Act, upon permission by the Financial Services Commission;
2. Korea Financial Investment Association established pursuant to Article 283 of the Financial Investment Services and Capital Markets Act;
3. Korea Federation of Savings Banks established pursuant to Article 25 of the Mutual Savings Banks Act.
(4) The methods of reporting under paragraphs (1) and (2), the designation and administration of intermediaries under paragraph (3), and other necessary matters shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
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 Article 5 (Measures, etc. by Financial Companies, etc.)   print
A financial company, etc. (excluding entities prescribed by Presidential Decree) shall take any of the following measures to facilitate reporting referred to in Article 4 (1) and (2) and Article 4-2, and effectively prevent money laundering and financing of terrorism through the financial company, etc.: <Amended by Act No. 11411. Mar. 21, 2012>
1. Appointment of a person to be in charge of reporting duties referred to in Article 4 (1) and (2) and Article 4-2, and establishment of the internal reporting system;
2. Preparation and operation of the procedure and business guidelines to be followed when executives and employees of the relevant financial company, etc. perform their duties in order to prevent money laundering and financing of terrorism;
3. Education and training of executives and employees for the prevention of money laundering and financing of terrorism.
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
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 Article 5-2 (Responsibilities of Financial Companies, etc. to Verify Clients)   print
(1) As a reasonable precaution to prevent money laundering and financing of terrorism, each financial company, etc. shall take any of the following measures. In such cases, each financial company, etc. shall prepare and operate work guidelines for such measures:
1. Where a client opens a new account or makes a single financial transaction of not less than an amount prescribed by Presidential Decree: Verification of matters prescribed by Presidential Decree, with regard to the personal information of the relevant person;
2. Where a client is likely to engage in money laundering or financing of terrorism such as where there is any suspicion as to whether he/she is the actual party to the financial transaction: Verification as to whether the client is the actual party to the transaction, and the purposes of the financial transaction.
(2) Work guidelines under paragraph (1) shall include the details, procedures, and methods of appropriate measures related to the prevention of money laundering or financing of terrorism, by each type of client and financial transaction.
(3) The object, standards, procedures and methods of verification measures, etc. under each subparagraph of paragraph (1), and other necessary matters shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
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 Article 6 (Notification of Information on Foreign Exchange Transactions, etc.)   print
(1) The Governor of the Bank of Korea, the head of the relevant customshouse and others prescribed by Presidential Decree shall notify the Commissioner of the Korea Financial Intelligence Unit of data related to reporting under Article 17 of the Foreign Exchange Transactions Act and notification under Article 21 of the said Act.
(2) Necessary matters concerning the scope of data subject to notification and procedures for such notification under paragraph (1) shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
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 Article 7 (Provision of Information to Investigation Authorities, Etc.)   print
(1) When deemed necessary for investigations into criminal cases concerning alleged illegal assets, money laundering or financing of terrorism, investigations into alleged violations of tax laws, tax investigations to verify alleged violations under Article 3 of the Punishment of Tax Evaders Act, investigations into alleged customs violations, customs duty investigations to verify alleged violations under Article 270 of the Customs Act, investigations into alleged violations of the Political Funds Act, or financial supervision (hereinafter referred to as "investigations into specific criminal cases, etc."), the Commissioner of the Korea Financial Intelligence Unit shall provide each of the following information (hereinafter referred to as "certain information on financial transactions") to the Public Prosecutor General, the Commissioner of the National Tax Service, the Commissioner of the Korea Customs Service, the National Election Commission or the Financial Services Commission. <Amended by Act No. 7336, Jan. 17, 2005; Act No. 8704, Dec. 21, 2007; Act No. 8863, Feb. 29, 2008; Act No. 10694, May 19, 2011; Act No. 11411. Mar. 21, 2012; Act No. 11546, Dec. 11, 2012>
1. Information reported by financial companies, etc. under Article 4 (1) or (2);
2. Information received from foreign financial intelligence services under Article 8 (1);
3. Information compiling or analyzing the information set forth in subparagraphs 1 and 2 or the information reported or notified under Articles 4-2 and 6.
(2) When deemed necessary for investigations into criminal cases concerning alleged illegal assets, money laundering or financing of terrorism, the Commissioner of the Korea Financial Intelligence Unit shall provide certain information on financial transactions prescribed by Presidential Decree to the Commissioner General of the Korean National Police Agency and the Commissioner General of the Korea Coast Guard. <Amended by Act No. 10694, May 19, 2011; Act No. 11546, Dec. 11, 2012>
(3) Deleted. <by Act No. 7336, Jan. 17, 2005>
(4) When deemed necessary for investigations into specific criminal cases, etc., the Public Prosecutor General, the Commissioner General of the Korean National Police Agency, the Commissioner General of the Korea Coast Guard, the Commissioner of the National Tax Service, the Commissioner of the Korea Customs Service, the National Election Commission or the Financial Services Commission (hereinafter referred to as the "Public Prosecutor General, etc.") may request the Commissioner of the Korea Financial Intelligence Unit to provide the information set forth in paragraph (1) 3 as prescribed by Presidential Decree. <Amended by Act No. 10694, May 19, 2011; Act No. 11546, Dec. 11, 2012>
(5) The requests for provision of certain information on financial transactions under paragraph (4) shall be made by the Public Prosecutor General, etc. in writing, specifying each of the following matters: <Amended by Act No. 10694, May 19, 2011>
1. Personal information of relevant persons;
2. Purposes of use;
3. Details of required information.
(6) Public officials of the Korea Financial Intelligence Unit who receive any requests for provision of certain information on financial transactions in violation of paragraph (5) shall reject such requests. <Amended by Act No. 10694, May 19, 2011>
(7) Upon provision of certain information on financial transactions under paragraphs (1), (2) and (4), the Commissioner of the Korea Financial Intelligence Unit shall record and retain the names of public officials involved in the review and analysis and the provision processes, the details of the information provided and the grounds for provision, for five years from the date of provision as prescribed by Presidential Decree. <Amended by Act No. 10694, May 19, 2011>
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 Article 8 (Exchanging, etc. of Information with Foreign Financial Intelligence Services)   print
(1) The Commissioner of the Korea Financial Intelligence Unit may provide certain information on financial transactions to foreign financial intelligence services, or receive such information therefrom, on a reciprocal basis, if deemed necessary to achieve the purposes of this Act.
(2) Where the Commissioner of the Korea Financial Intelligence Unit intends to provide foreign financial intelligence services with certain information on financial transactions under paragraph (1), he/she shall satisfy all of the following requirements:
1. No certain information on financial transactions provided to foreign financial intelligence services shall be used for any purposes, other than its original purpose;
2. The provision of certain information on financial transactions shall be kept confidential;
3. No certain information on financial transactions provided to foreign financial intelligence services shall be used for any foreign criminal investigation or trial, without prior consent from the Commissioner of the Korea Financial Intelligence Unit.
(3) If requested by any foreign country, the Commissioner of the Korea Financial Intelligence Unit may give consent to the use of certain information on financial transactions provided under paragraph (1) for a criminal investigation or trial, which is related to such request, upon obtaining consent from the Minister of Justice.
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
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 Article 9 (Confidentiality, etc. of Financial Transactions Information)   print
(1) None of the following persons shall provide others with specific financial transaction information he/she has come to know in the course of performing his/her duties, information or data provided pursuant to Article 10, and information provided pursuant to Article 11 (7), or divulge such information or data to others, or use them for any purposes other than the intended objectives:<Amended by Act No. 11411. Mar. 21, 2012>
1. A public official who works for the Korea Financial Intelligence Unit:
2. A manager in charge of a computer system (referring to a computer system to process specific financial transaction information) or a provider of services related to the relevant computer system;
3. A person who works for an intermediary institution;
4. A person engaged in investigation, etc. of a specific criminal case related to specific financial transaction information provided pursuant to Article 7;
5. A person who conducts supervision under Article 11 (1) and an inspection under paragraph (6) of the same Article.
(2) No person shall request a person who falls under any of the subparagraphs of paragraph (1) to provide him/her with specific financial transaction information, information or data provided pursuant to Article 10 and information provided pursuant to Article 11 (7), or use such information or data for any purposes other than the intended objectives. <Newly Inserted by Act No. 11411. Mar. 21, 2012>
(3) No specific financial transaction information provided pursuant to Article 7 shall be used as evidence in any trial. <Amended by Act No. 11411. Mar. 21, 2012>
(4) Employees of a financial company, etc. who have been involved in reporting under Article 4 (1) or (2) may refuse to testify on matters related to such reporting, except in a trial related to Articles 13 and 14: Provided, That this shall not apply, if necessary for substantial public interests. <Amended by Act No. 11411. Mar. 21, 2012>
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
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 Article 10 (Requests, etc. for Provision of Information)   print
(1) The Commissioner of the Korea Financial Intelligence Unit may request the head of a relevant administrative agency to provide data prescribed by Presidential Decree (excluding information on financial transactions), if deemed necessary for analyzing certain information on financial transactions (excluding information referred to in Article 7 (1) 3; hereafter the same shall apply in this Article) or information reported or notified under Article 4-2 or 6.
(2) If deemed necessary for analyzing certain information on financial transactions, the Commissioner of the Korea Financial Intelligence Unit may require the head of a credit information concentration agency under Article 25 of the Use and Protection of Credit Information Act, stating the purposes of use in a document, to provide credit information (excluding information on financial transactions), as prescribed by Presidential Decree.
(3) The Commissioner of the Korea Financial Intelligence Unit may require the head of a financial company, etc. to provide information on financial transactions or data through transactions arising from foreign exchanges provided for in the Foreign Exchange Transactions Act stating the following matters in a document, only if reported or received matters are deemed to fall under the requirements referred to in Article 4 (1) or (2), in analyzing certain information on financial transactions:
1. Personal information of parties to a transaction;
2. The purposes of use;
3. Details of required information or data related to financial transactions.
(4) Requests for provision of information under paragraphs (1) through (3) shall be limited to only the minimum extent necessary.
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
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 Article 11 (Supervision, Examination, etc. of Financial Companies, etc.)   print
(1) The Commissioner of the Korea Financial Intelligence Unit may supervise the duties conducted by financial companies, etc., issue orders or instructions necessary for supervision, and require public officials under his/her jurisdiction to examine the duties of financial companies, etc. pursuant to Articles 4, 4-2, 5 and 5-2.
(2) If the Commissioner of the Korea Financial Intelligence Unit finds that a financial company, etc. has violated this Act, or an order or instructions issued under this Act as a result of an examination under paragraph (1), he/she may take any of the following measures against the relevant financial company, etc.: <Amended by Act No. 11411. Mar. 21, 2012>
1. An order to correct the relevant violation;
2. Warning against a financial institution;
3. Inviting a financial institution's attention.
(3) Where the Commissioner of the Korea Financial Intelligence Unit finds that a financial company, etc. has violated this Act, or an order or instruction issued under this Act as a result of an examination under paragraph (1), he/she may request the head of the relevant financial institution, etc. to take measures pursuant to the following classifications againstexecutives or employees involved in a violation: <Newly Inserted by Act No. 11411. Mar. 21, 2012>
1. Executives: Measures falling under any of the following items:
(a) Advice to resign;
(b) Suspension of performing duties within six months;
(c) Warning to censure the violator;
(d) Warning for caution's sake;
(e) Inviting the violator's attention.
2. Employees: Measures falling under any of the following items:
(a) Dismissal;
(b) The suspension of performing duties;
(c) Reduction of a salary;
(d) Reprimand;
(e) Inviting the violator's attention.
(4) Where a financial company, etc. falls under any of the following subparagraphs, the Commissioner of the Korea Financial Intelligence Unit may request the head of the relevant administrative agency who has the authority to impose administrative sanctions on the business of the relevant financial institution, etc. to suspend all or some of such business up to six months: <Newly Inserted by Act No. 11411. Mar. 21, 2012>
1. Where a financial institution, etc. fails to comply with an order to make corrections under paragraph (2) 1;
2. Where a financial institution, etc. has received warning against the financial institution, etc. under paragraph (2) 2 not less than three occasions;
3. Other cases prescribed by Presidential Decree where a financial institution, etc. fails to take measures necessary for the prevention of money laundering and financing of terrorism intentionally or by gross negligence.
(5) The head of the relevant administrative agency in receipt of a request under paragraph (4) shall comply with such request unless a justifiable reason exists.<Newly Inserted by Act No. 11411. Mar. 21, 2012>
(6) The Commissioner of the Korea Financial Intelligence Unit may entrust the Governor of the Bank of Korea, the Governor of Financial Supervisory Service under the Act on the Establishment, etc. of Financial Services Commission or other persons prescribed by Presidential Decree to have employees under his/her jurisdiction conduct an examination under paragraph (1) and to take measures under paragraphs (2) and (3), as prescribed by Presidential Decree. <Amended by Act No. 11411. Mar. 21, 2012>
(7) If necessary for conducting supervision or examinations, a person who conducts supervision pursuant to paragraph (1) or an examination pursuant to paragraph (6) may request the head of a financial institution, etc. to provide him/her with financial transaction information or information that he/she has reported pursuant to Articles 4 and 4-2. In such cases, a request for information shall be limited to the minimum as may be necessary. <Newly Inserted by Act No. 11411. Mar. 21, 2012>
(8) A person who conducts an examination under paragraph (1) or (6) shall carry an identity card indicating his/her authority, and produce it to relevant persons. <Amended by Act No. 11411. Mar. 21, 2012>
(9) Where a person who conducts supervision pursuant to paragraph (1) or an examination pursuant to paragraph (6) requests a financial company, etc. to provide him/her with financial transaction information pursuant to paragraph (7), Articles 4 (6) and 4-3 (3) of the Act on Real Name Financial Transactions and Confidentiality shall apply mutatis mutandis thereto. <Newly Inserted by Act No. 11411. Mar. 21, 2012>
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
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 Article 12 (Relationship to other Acts and Subordinate Statutes)   print
(2) Article 35 of the Use and Protection of Credit Information Act shall not apply to information provided by financial companies, etc. and intermediaries, pursuant to this Act.
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
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 Article 13 (Penal Provisions)   print
A person who falls under any of the following cases shall be punished by imprisonment for not more than five years, or by a fine not exceeding 30 million won: <Amended by Act No. 11411. Mar. 21, 2012>
1. A person who peruses, or makes copies of relevant data retained by a financial company, etc., or requests the head of a financial company, etc. to provide information or data related to financial transactions by abusing his/her authority despite his/her failure to meet any requirement under Article 4 (5) or 10 (3);
2. A person who provides or divulges specific financial transaction information he/she has come to know in the course of performing his/her duties, in violation of Article 9 (1), information or data provided pursuant to Article 10, and information provided pursuant to Article 11 (7) to any third person, or uses it for any purpose, other than theintended purpose, or a person who requests the provision of certain information on financial transactions or information or data received under Article 10, or requests to use it for any purpose, other than theintended purpose.
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
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 Article 14 (Penal Provisions)   print
A person who falls under any of the following cases shall be punished by imprisonment for not more than one year, or by a fine not exceeding five million won:
1. A person who files a false report pursuant to Article 4 (1) or (2), or Article 4-2 (1) or (2);
2. A person who violates Article 4 (6).
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
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 Article 15 (Concurrent Imposition of Imprisonment and Fines)   print
A person who commits any offence provided for in Articles 13 and 14 may be sentenced to both imprisonment and a fine.
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
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 Article 16 (Joint Penal Provisions)   print
Where a representative of a corporation, or an agent, employee or other servant of the corporation or an individual commits a violation under Article 14 in connection with the business of the corporation or the individual, not only shall such offender be punished, but also the corporation or individual shall be punished by a fine under the relevant provisions: Provided, That where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant duties to prevent such violation, this shall not apply.
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
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 Article 17 (Fines for Negligence)   print
(1) A person who falls under any of the following cases shall be punished by a fine for negligence not exceeding ten million won: <Amended by Act No. 11411. Mar. 21, 2012>
1. A person who fails to file a report, in violation of Article 4 (1) 1 and 2, or Article 4-2 (1) and (2);
2. A person who fails to take measures for verification under the subparagraphs of Article 5-2 (1), in violation of the same paragraph;
3. A person who fails to comply with, refuses, interferes with, or evades an order, instruction or examination under Article 11 (1) through (3) or (6).
(2) Fines for negligence under paragraph (1) shall be imposed and collected by the Commissioner of the Korea Financial Intelligence Unit, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10694, May 19, 2011]
ADDENDA
(1) (Enforcement Decree) This Act shall enter into force two months after the date of its promulgation.
(2) (Applicability to Scope of Information, etc. Requested by the Commissioner of the Korea Financial Intelligence Unit) The scope of information or data the Commissioner of the Korea Financial Intelligence Unit may request the head of financial institutions, etc. to submit under Article 10 (3) 3 shall be limited to information or data related to financial transactions made after this Act enters into force.
(3) Omitted.
ADDENDA <Act No. 7311, Dec. 31, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 16 Omitted.
ADDENDA <Act No. 7336, Jan. 17, 2005>
(1) (Enforcement Decree) This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 4-2 and 5-2 shall enter into force one year after this Act enters into force.
(2) (Applicability to Reporting on Large Cash Transactions) The amended provisions of Articles 4-2 and 5-2 shall initially apply to the first payment or receipt of cash, etc.
(3) Omitted.
ADDENDA <Act No. 8635, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force one year and six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 43 Omitted.
ADDENDA <Act No. 8704, Dec. 21, 2007>
Article 1 (Enforcement Decree)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 1, subparagraphs 1 (n), 2 (c), 3 (c) and 5 of Article 2, Article 3 (1) 4 and 5, and 3 (2), Article 4 (1) and (2) and the part related to financing of terrorism from paragraph (6) 1. Article 4-2 (1) 1, (3) and (4), Article 5, Article 5-2, Article 7 (1) and (2), Article 9 (1), and the part related to intermediaries from Article 12 (2) shall enter into force one year after the date of its promulgation.
Article 2 (Applicability to Money Laundering)
The amended provisions of subparagraph 4 (c) of Article 2 shall initially apply to the first money laundering, referred to in the said item, after this Act enters into force.
Article 3 (Transitional Measures concerning Fines for Negligence)
The former provisions shall apply to fines for negligence on misconduct committed before this Act enters into force.
Article 4 (Transitional Measures Pursuant to the Capital Market and Capital Market and Financial Investment Business Act)
(1) Transactions made in the derivatives market as set forth in subparagraph 2 (b) of Article 2 under the Capital Market and Financial Business Act shall be deemed futures trading under subparagraphs 1 and 2 of Article 3 of the Futures Trading Act, until February 4, 2009.
(2) Korea Financial Investors' Association as set forth in Article 4-2 (3) 2 shall be construed as the Korea Securities Dealers Association established under Article 162 of the Securities and Exchange Act, until February 4, 2009.
ADDENDA <Act No. 8863, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 9617, Apr. 1, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 13 Omitted.
ADDENDA <Act No. 9919, Jan. 1, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 10043, Feb. 4, 2010>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 10303, May 17, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 though 10 Omitted.
ADDENDA <Act No. 10522, Mar. 31, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on March 2, 2012. (Proviso Omitted.)
Articles 2 though 28 Omitted.
ADDENDA <Act No. 10694, May 19, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Enforcement Date of the Community Credit Cooperatives Act)
"The National Federation of Community Credit Cooperatives" referred to in the amended provision of subparagraph 1 (j) of Article 2 shall be construed as "the Federation of Community Credit Cooperatives" until September 8, 2011.
Article 3 Omitted.
ADDENDA <Act No. 11411, Mar. 21, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation: Provided, That the amended provisions of Article 7 (1) shall enter into force on the date of its promulgation.
Article 2 (Applicability to Suspension of All or Some of Business)
The amended provisions of Article 11 (4) shall apply to grounds for the suspension of all or some of business which arise on and after this Act enters into force.
ADDENDUM <Act No. 11546, Dec. 11, 2012>
This Act shall enter into force on the date of its promulgation.