No Money-Laundering at Casino

From the end of November, any foreign currency exchange exceeding 10 thousand US Dollars or 50 million Korean Won at Kangwon Land and hotel casinos is reported with the full statement of transaction and the information on the exchanger`s identity to the Financial Intelligence Unit (FIU), and thus becomes subject to an inspection as to whether or not it is a case of money-laundry. Accordingly, `laundering` of drug-smuggling money, a gangster organization funds or a company`s secret funds is blockaded from the source.

Ministry of Finance and Economy FIU Organizing Plan Committee announced on Nov. 5 that the Money Laundering Prevention Law that contains the list of subjects obliged to report any transactions under suspicion of money-laundering, including such domestic casinos as hotel casinos and Kangwon Land had been prepared and would be put in force from Nov. 28.

The Money Laundering Prevention Law that passed the National Assembly at the end of September prescribes that `such financial organizations as banks, security or insurance corporations and non-financial organizations defined by the presidential order` ought to report any transactions under suspicion of illegal funds. The enforcement regulations prepared at this time provides that `non-financial organizations defined by the presidential order` should include the money changers registered at the Bank of Korea as well as 12 hotel casinos for foreigners throughout the nation and Kangwon Land.

According to the regulations, each casino should employ the personnel in charge of reporting the information on the exchanger`s identity and the statement of transaction to FIU immediately, concerning an exchange of casino chips worth over 50 million Korean won or 10 thousand U.S. dollars with cash.

If FIU finds any suspicion of illegal funds when inspecting the details of the transaction and the exchanger`s records of embarkation and disembarkation, it requests the Prosecutor`s Office, the Police, National Tax Service or the Office of Customs Administration to probe into the case.

FIU Organizing Plan Committee Chair Bang Young-Min said, ``When money laundering becomes impossible at the financial organizations as a result of the enforcement of the Money Laundering Prevention Law, other means of money laundering may be sought.`` and added, ``Money launderings of international criminal groups can be prevented by making money-exchanging transactions subjects of the mandatory report.``

sanjuck@donga.com