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FX Trading to Get Tighter Scrutiny

Posted October. 13, 2008 07:58,   


The Korea Customs Service will probe the wiring of foreign currencies suspected of fueling speculation, especially the purchase of huge amounts of foreign currencies and illegal money wiring.

The agency yesterday said the investigation will run through Dec. 11, saying it hopes to restore order in the financial market suffering from large fluctuations of foreign currency rates.

The plan has six targets: the purchase of huge amounts of foreign currencies suspected of fueling currency speculation; attempts to skirt foreign currency laws through gift declarations; money allegedly earned through export suspected of violating foreign currency law; money wiring for illegal exchange purposes; attempts to smuggle foreign currencies out of the country; and gold smuggling to cash in on its high price.

Receiving data from the Bank of Korea and commercial banks on individuals and corporations purchasing more than 10,000 U.S. dollars a day, customs authorities will see if they used the money as declared.

Under law, an exporter must collect an amount exceeding half a million dollars within one and a half years. Thus, the agency will check if certain exporters intentionally left an outstanding balance on the books to illegally use it overseas. In addition, the agency will investigate individuals and corporations that repeatedly wired small amounts to see if they evaded tax or smuggled foreign currencies.

Also subject to the probe is money wiring via illegal traders, attempts to take out more than 10,000 dollars without declaration, and gold smuggling.

Customs officials through August reported 770 cases of foreign currency smuggling worth 24.3 billion won, or 18.5 million dollars, and 363 cases of illegal wiring through unauthorized dealers worth 993.5 billion won, or 758.9 million dollars.