In South Korea, suspicious overseas remittances amounted to more than $6.5 billion, which is $1.17 billion higher than the ROK Financial Supervisory Service (FSS) estimated last month.
Several news outlets reported that most transactions took place through domestic cryptocurrency exchanges, and the funds were sent overseas, such as to the US, China, and Hong Kong, via domestic South Korean banks.
In June, Woori Bank and Shinhan Bank detected suspicious transactions worth $2.02 billion in their own inspection and reported them to the FSS in June. It is expected that the Financial Supervisory Service would carry out large-scale on-site inspections on illegal money laundering and potentially impose sanctions.
Suspicion among overseas transactions is rising as the amount of foreign exchange remittance increases. The Public Prosecutor’s Office and National Intelligence Service also expanded their investigation, and the Prosecutor’s Office recently arrested three people who established a front company and transferred $365 million overseas by submitting false documents.
Lawmaker Yoon Han-hong pointed out, “Since the foreign exchange transactions have not been identified clearly, there are many rumors such as that there were political slush funds, money may have gone to North Korea, and various illegal funds would have been sent overseas.”
The FSS stated, “We will conduct additional inspections for other banks other than Woori Bank and Shinhan Bank where suspicious foreign exchange transactions have been detected.” An official of the FSS said, “The actual amount of overseas remittance may be higher (if the inspection is conducted.)”
“We take (illegal) foreign exchange remittances seriously and may impose sanctions,” FSS Chief Lee Bok-hyun said.
