Rules Change Approved to Strengthen Registration and Anti-Money Laundering Requirements of VASPs

The Financial Services Commission announced that the government approved a revision bill for the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information (the Act hereinafter) at the cabinet meeting held on August 11. With the revised rules in place, virtual asset service providers (VASPs) will be subject to stricter registration requirements and enhanced anti-money laundering (AML) duty in their handling of virtual asset transfers. Key Revision Details The rules change provide details regarding the registration requirements of VASPs, the notification of sanctions imposed on retired employees, the strengthened AML duty for virtual asset transfers (travel rule transactions), and the enhanced customer due diligence (CDD) requirement. I. Enhanced Entry Rules and Registration Requirements Expanded scope of major shareholders The scope of major shareholders falling under the scrutiny for the entry registration of a VASP will be expanded to include the chief executive officer or controlling shareholder of the company, and the largest shareholder and company representative if the largest shareholder is a corporate entity. Conditions for non-accep...