“Without Terrorist Fund Suppression Law, There Will Be No Sharing of Terrorist Information with Korea”

The Egmont Group, an international agency that monitors terrorist funds, was affirmed to have sent a letter to the Korean government saying that it would not share terrorism-related information with it if Korea is not equipped with a law to prevent the procurement of terrorist funds.

Accordingly, concerns are rising that Korea could be ostracized in the international efforts to prevent terrorism as it has no such law, even as Korea is now a victim of a terrorist organization like the Taliban.

On August 2, the Ministry of Finance and Economy (MOFE) received a warning letter recently from the Egmont Group saying, “Unless Korea is equipped with a terrorist fund procurement law by May next year, it will not get to share information with other members.”

Prior to that, the group said at the end of May, “If there is no law, measures will be underway to suspend Korea’s membership.”

One official from the MOFE said, “Korea is participating with observer status and not an official member of the Financial Action Task Force (FATF). It will have to leave the venue when the “closed meeting” starts because it deals with sensitive issues like terrorism,” adding, “If Korea has no information sharing protocol in place with the Egmont Group, prompt acquisition of information on international terrorist funds would be unfeasible to share with it.”

The decision of the Egmont Group would negatively affect Korea’s membership at the FATF, which presents legislating terrorist fund procurement laws as an essential prerequisite for membership.

The government has prepared related domestic laws after getting observer status from the FATF last August by presenting a terrorist fund procurement suppression act to the National Assembly in February this year. However, this act faced opposition from some political and civic groups, stalling its passage.

Some civic groups, including the Korean Federation for Environmental Movement and the People`s Solidarity for Participatory Democracy, are opposing it, saying, “The terrorist fund procurement prevention law could suspend humanitarian aid to North Korea.”

In addition, the political sector is delaying the passage of the act based on the argument of some lawmakers who argue, “A basic law on terrorism defining terrorist activities must be legislated in the first place.”

The MOFE is worried that without a related law in place established by the deadline set by the Egmont Group, it could lead to the suspension of sharing terrorism-related information with the Egmont Group, which would harm Korea’s membership outlook with the FATF, which, in turn, would weaken Korea’s credibility.” Korea, the host country of the general meeting of the Egmont Group next May, could be embarrassed by being deprived of membership status there.

Professor Kim Seong-han at the Institute of Foreign Affairs and National Security said, “Whether or not Korea legislates the terrorist fund procurement suppression law is a critical yardstick for Korea to either join the international solidarity movement against terrorism or to passively follow others,” adding, “Under the framework of the anti-terrorism principle, both the ruling and opposition parties must pass the act immediately after thorough discussions.”

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